CBS News
3 smart debt relief moves to make this June (and 3 to avoid)
Getty Images
June is upon us and soon, summer will be in full swing. However, if you have debt that you’re having a difficult time dealing with, you likely have other things on your mind. But, you’re not alone. Debt is a normal challenge to face across the United States and there are multiple solutions to it – albeit, some more effective than others.
With so many moves you can make with regard to your debt, it can be difficult to determine which moves are smart and which you should avoid, particularly now in which inflation is still a concern and interest rates are high. Against this backdrop, it’s important to know which smart debt relief moves to make this June and which to avoid.
Discuss your debt relief options with an expert now.
3 smart debt relief moves to make this June (and 3 to avoid)
To secure the most effective debt relief option, it’s critical to know what steps to take and which ones to avoid. Debt, especially high interest debt, can be challenging to deal with. But, there are a few smart moves you can make to start putting your debt behind you this June.
Act now
First and foremost, you should act now. If you wait too long, you could be facing higher interest rates ahead. That’s because the Federal Reserve meets on June 11 and 12, 2024 to discuss monetary policy. And, with inflation remaining persistent, the Fed could decide to increase its benchmark federal funds rate following the meeting.
If that happens, interest rates on any variable-rate debts you have could rise as your lenders may use the federal funds rate as a benchmark for what they’ll charge you. So, act now before rates have a chance to go up and your debts become more expensive.
Get the debt relief help you need now.
Discuss your options with a debt relief expert
Making payments on your debt may be challenging in today’s inflationary environment. But, a debt relief expert can help. There are several debt relief solutions that could be worth consideration. And, a debt relief expert will be able to help you navigate those solutions to find the one that best fits your needs. In doing so, you may be able to cut the monthly cost of your debt, making it easier to afford today’s higher cost of living.
Consolidate at a lower rate
Another thing to consider that can produce savings in today’s inflationary environment is debt consolidation. “Consolidating debt streamlines your finances by bundling multiple obligations into a single, potentially lower-interest payment,” explains Michael Broughton founder and CEO of the credit building app, ALTRO. “This approach can enhance your cash flow management and could accelerate your debt repayment journey.”
While there are smart moves you can make with your debt this June, there are also a few moves you should avoid. This includes:
Adding new debt to the mix
Considering today’s high interest rates, it’s wise to avoid taking on any new debt. After all, taking on new debt means that you could find yourself paying high interest rates on another account or building higher balances on your current accounts – increasing your monthly debt expense.
Making minimum payments
Simply making minimum payments is typically a bad idea. But, doing so with today’s high interest rates can become even more costly. Since these types of payments will be used to pay interest, you’ll make little headway on your principal balances unless you make larger payments – which means you could be in debt for quite some time if you don’t adjust your payment strategy.
Ignoring your debt
Finally, it’s never a good idea to ignore debt. Ignoring debt “can lead to accumulating interest, late fees and potential damage to your credit score,” explains Evan Patzer, a retirement strategizing specialist at the financial planning firm, LifeWealth Solutions.
And, if you ignore your debt for too long, your lenders may take you to court and win a judgment. If that happens, it could put your income and property in jeopardy. So, it’s best to work with your lenders if at all possible, and if not, reach out to a debt relief professional to address your debts before any of the above consequences have a chance to come to fruition.
The bottom line
Debt doesn’t have to be challenging. Making wise decisions this June with your debt could help you reduce your monthly obligations while fast tracking your debt payoff journey. So, act now and get in contact with a debt relief provider. Or, use a debt consolidation loan to reduce your monthly expenses and simplify the payoff process. But, whatever you do, don’t add new debt to the mix, avoid minimum payments and never ignore what you owe. Find out how a debt relief expert can help now.
Floodwaters pushed by the remnants of Hurricane Helene left North Carolina’s largest mountain city largely cut off Saturday by damaged roads and a lack of power and cellphone service, part of a swath of destruction across southern Appalachia that left an unknown number dead and countless worried relatives unable to reach loved ones.
In North Carolina alone, more than 400 roads remained closed on Saturday as floodwaters began to recede and reveal the extent of damage. North Carolina Gov. Roy Cooper said that supplies were being airlifted to that part of the state. Cooper said two people died in his state, Helene killed at least 52 people across multiple states.
Among those rescued from rising waters was nurse Janetta Barfield, whose car was swamped on Friday morning as she left an overnight shift at Asheville’s Mission Hospital. She said she watched a car in front of her drive through standing water and thought it was safe to proceed. But her car stalled, and within minutes water had filled her front seat up to her chest. A nearby police officer who saw her car stall helped her to safety.
“It was unbelievable how fast that creek got just in like five minutes,” Barfield said.
Erik Verduzco / AP
Early on Saturday morning, many gas stations were closed because they didn’t have electricity, and the few that were open had hourlong lines wrapped around the block. The hub of tourism and arts, home to about 94,000 people, was unusually still after floodwaters swamped neighborhoods known for drawing visitors including Biltmore Village and the River Arts District, which is home to numerous galleries, shops and breweries.
More than 700,000 power customers were without power across North Carolina, including 160,000 in Buncombe County. Interstate 40 and I-26 were impassible in multiple locations, and a state transportation department map showed that most routes into Asheville and across much of the mountains were snarled. North Carolina’s Department of Transportation posted on social media on Saturday afternoon that “all roads in Western North Carolina should be considered closed.”
In Asheville, there was no cellular service and no timeline for when it would be restored.
“We have had some loss of life,” County Emergency Services Director Van Taylor Jones told reporters. However, he said they were not ready to report any specifics. Officials have been hindered in contacting next of kin by the communications outages. Asheville police instituted a curfew from 7:30 p.m. Friday to 7:30 a.m. Saturday.
“The curfew is to ensure the public’s safety and will be in effect until further notice,” police said.
Asheville transit services were also suspended, police said. The city advised residents to boil “all water used for human consumption,” as there was at least one significant water line break during the storm. Many residents might not be getting water or reduced or no pressure water.
Jones said the area experienced a cascade of emergencies that included heavy rain, high winds and mudslides. Officials said they tried to prepare for the storm but its magnitude was beyond what they could have imagined.
“It’s not that we (were) not prepared, but this is going to another level,” Sheriff Quentin Miller said. “To say this caught us off-guard would be an understatement.”
Erik Verduzco / AP
Atlanta resident Francine Cavanaugh said she has been unable to reach her sister, son, or friends in the Asheville area.
“My sister checked in with me yesterday morning to find out how I was in Atlanta,” she said on Saturday. “The storm was just hitting her in Asheville, and she said it sounded really scary outside.”
Cavanaugh said her sister had no idea how bad the storm would be there. She told Cavanaugh she was going to head out to check on guests at a vacation cabin “and that’s the last I heard of her. I’ve been texting everyone that I know with no response. All phone calls go directly to voicemail.”
The CEO of a hospital operator that filed for bankruptcy protection in May will step down after failing to testify before a U.S. Senate panel.
Steward Health Care CEO Ralph de la Torre has overseen a network of some 30 hospitals around the country. The Texas-based company’s troubled recent history has drawn scrutiny from elected officials in New England, where some of its hospitals are located.
A spokesperson for de la Torre told the Associated Press Saturday that he “has amicably separated from Steward on mutually agreeable terms” and “will continue to be a tireless advocate for the improvement of reimbursement rates for the underprivileged patient population.”
A CBS News investigation that spanned nearly two years documented how private equity investors and de la Torre extracted hundreds of millions of dollars while healthcare workers and patients struggled to get the life-saving supplies they needed.
In August, the company closed two Massachusetts hospitals, leaving about 1,200 workers jobless, according to the state.
Sen. Bernie Sanders of Vermont, who chairs the Senate Health, Education, Labor and Pensions Committee, said earlier this month that Congress “will hold Dr. de la Torre accountable for his greed and for the damage he has caused to hospitals and patients throughout America.”
De la Torre’s resignation is effective Oct. 1. The Senate approved a resolution on Wednesday that was intended to hold him in criminal contempt for failing to testify before a committee.
The Senate panel has been looking into Steward’s bankruptcy. De la Torre did not appear before it despite being issued a subpoena. The resolution refers the matter to a federal prosecutor.
Kayla Bartkowski/The Boston Globe via Getty Images
CBS News
Climate Watch: Protecting the Planet | How climate change threatens plant and animal species
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
