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Will credit card debt become less expensive with inflation cooling?
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Today’s high interest rate environment can make credit card debt expensive. With the federal funds rate frozen at a 23-year high, interest rates on credit cards and other debts are elevated. But, that could change soon.
The inflation report for June showed that price growth is continuing to cool in the United States. And, there’s a clear correlation between inflation and interest rates. When price growth slows, stagnates or falls, it gives the Federal Reserve cause to reduce its federal funds rate, which typically impacts consumer interest rates.
And since credit card debt usually comes with variable rates, you may wonder whether the new inflation report means interest rates on credit cards will fall, thus cutting the cost of carrying a balance. That’s what we will detail below.
Do you have high interest credit card debt? Get the relief you need here now.
Will credit card debt become less expensive with inflation cooling?
Considering the relationship between inflation and interest rates, it’s possible that credit card interest rates could fall soon, making credit card debt less expensive. But if you’re struggling to keep up with your credit card payments and hoping for a substantial rate cut, you may be waiting for some time. That’s because changes to interest rates tend to happen slowly.
Among other things, the Federal Reserve is charged with tempering inflation. And it typically does so by changing interest rates; increasing them when inflation is too high and decreasing them when inflation is too low. But, if the Fed acts too quickly, its interest rate changes can harm the economy.
To put the speed of rate reductions into perspective, the Fed has already announced that it only expects to cut rates once this year. And when it does, its federal fund rate is only expected to drop by 0.25%. That relatively minimal drop will do little to reduce credit card minimum payments. So, if you need debt relief now, waiting for it to come by way of rate cuts may be a bad idea.
Don’t wait for lower rates to get the relief you need now.
How to get debt relief now
If you need relief from high interest credit card debt, follow these steps:
- Understand your debts and your budget: Look into your credit card accounts to determine how much debt you have, your average interest rate and how much your monthly payments add up to. And, think about how much you can comfortably afford to pay toward your debt monthly.
- Choose a debt relief option: There are several debt relief options to choose from. Three of the most common are debt consolidation, debt management and credit card debt forgiveness. Each of these services provides a different level of relief and is designed for debtors in varying situations. So, it’s important to determine which option is best for you.
- Compare providers: There are many debt relief companies to choose from. Each has its own pricing structure and strategy for managing your debts. So, compare leading providers to find one that can meet your needs.
- Get started: Contact the debt relief provider you believe will be best. When you do, be honest. Keep in mind that debt relief providers can only help if they understand your financial hardship and capabilities.
- Stick to the plan: Once you sign up for a debt relief solution, make your monthly payments as agreed. As long as you stick to the plan, you should enjoy the relief you need.
The bottom line
With Thursday’s inflation report showing cooling price growth, credit card interest rates could start to come down soon. But, those interest rate reductions may not be enough to ease your financial hardship if you’re having trouble keeping up with your payments. Instead, consider seeking debt relief via consolidation, management or forgiveness. But, compare your options when you do as some types of debt relief may be better for your situation than others. Learn more about your options by talking to a debt relief professional now.
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Long before comic book characters dominated movie screens, actor Christopher Reeve made the world believes in superheroes with the 1978 classic “Superman.”
Reeve died in 2004, nearly a decade after an accident re-shaped his life. “Super/Man: The Christopher Reeve Story” is using interviews with family and friends and never-before-seen home videos to explore his real-life heroism.
Reeve started his career on the stage, studying at the prestigious Juilliard School and living with comedian Robin Williams. The pair had a friendship that was “more like a brotherhood,” said Reeve’s son Matthew. Reeve was in awe of Williams’ energy and versatility, Matthew Reeve said, but audiences quickly clued into Reeve’s own star power when he took on the role of the Man of Steel.
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To his children, though, he “was just dad,” Matthew Reeve said. The documentary explores how Matthew Reeve and his sister Alexandra Reeve Givens grew up watching their dad take the stage as Superman. “Super/Man” also reveals their heartbreak over their parents’ breakup and the joy they found when Reeve re-married. He tied the knot with Dana Reeve in 1992, and the pair welcomed another child, William Reeve, later that year.
“Dana was sunshine,” Alexandra Reeve Givens recalled. “She just brought joy with her wherever she was and could find it even in the darkest moments.”
Those dark moments came suddenly, when in 1995, a near-fatal horseback riding accident left Reeve paralyzed from the neck down. The documentary allows viewers to see, for the first time, what went on out of the public’s view. Reeve can be heard talking about how he “ruined (his) life and everybody else’s,” but in a touching moment, old friend Robin Williams is seen visiting him in the hospital.
“Robin showed him ‘Hey, you’re still you,'” Alexandra Reeve Givens said. “‘You still have this foundation of friendship and people around you, who adore you. And you’re going to find those fun moments in life again.'”
That support from friends and family re-ignited Reeve’s legacy of activism. He made appearances at the Democratic National Convention and the 68th Academy Awards in 1996, about a year after the accident. Matthew Reeve said watching his father address his industry peers at the Oscars was “one of (his) most proud moments.”
“It was just a production for him to get out of bed every morning, let alone get across the country and go out in public for the first time,” Matthew Reeve said. “It was a big deal. It was a big deal to him, but it was also a big deal to the entire disability community. We stayed up in London till like three in the morning to watch that live. It’s a fond memory.”
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Reeve also went on to launch what would become the Christopher and Dana Reeve Foundation, which is dedicated to advancing research into spiral cord injury and help individuals and families impacted by paralysis. It was his dad’s mission to find a cure, Matthew Reeve said, while his stepmother wanted to focus on improving the lives of paralyzed people and their families. The foundation and Reeve’s platform helped bring unprecedented attention and funding to spinal cord injury research.
Reeve even kept acting and realized his lifelong dream of directing with the 1997 HBO movie “In the Gloaming.” Reeve died in 2004 from heart failure at 52.
“There is a huge amount of great actors and actresses out there, where their filmography might be amazing and what they achieve on a cultural level might be amazing, but have they actually achieved anything really as a human that moves the needle for our society?” said filmmaker Ian Bonhote, who made the documentary with Peter Ettedgui. “And Chris has done both things.”
“Super/Man: The Christopher Reeve Story” will open in theaters on Friday, Oct. 11.
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