Credit card debt has become an increasingly pressing issue for millions of Americans. That’s because, unlike other forms of debt, credit card balances can quickly spiral out of control due to the high interest rates these borrowing tools come with — and how little the minimum payments impact the balance. 

One sign of how widespread the credit card debt issue has become is the recent uptick in maxed-out card users, with about 20% of cardholders now at their borrowing limits. Credit card delinquencies have also been climbing, showcasing how truly strapped many borrowers have become. But perhaps most startling is the fact that credit card debt has reached $1.14 trillion nationwide, a new record high.

While there are various solutions available for those grappling with credit card debt, debt consolidation can be a particularly appealing option. By combining multiple high-interest debts into a single, more manageable payment, debt consolidation can offer a path to financial relief. And, there are a few reasons borrowers may want to pursue it this September, in particular. 

Learn how the right debt relief company could help with your high-rate card debt now.

3 big reasons to consolidate your credit card debt this September

Here’s why credit card debt consolidation could make sense to pursue this September:

Loan rates are likely to fall in September

One of the most compelling reasons to consider consolidating your credit card debt this September is the anticipated decrease in loan rates. The Federal Reserve is widely expected to cut the cost of borrowing by at least 25 basis points at its September meeting, a move that would have a ripple effect across various lending products. This reduction in the federal funds rate typically translates to lower interest rates on consumer loans, including loans used for debt consolidation.

For those looking to consolidate their credit card debt, this potential rate cut could mean substantial savings. Debt consolidation loans and home equity loans, two popular options for rolling multiple credit card balances into a single debt, are likely to become more affordable. By taking advantage of these lower rates, borrowers could significantly reduce the overall interest they pay on their debt, potentially saving thousands of dollars over the life of the loan.

Start tackling your expensive credit card debt today.

Credit card rates may not follow

While loan rates are expected to decrease, credit card interest rates may not follow suit, at least not to the same extent or with the same speed. Unlike lenders that offer personal loans or home equity products, credit card issuers are often slower to adjust their rates in response to Federal Reserve actions. In turn, any impact that the Fed decision has on card rates is likely to be minimal — and probably won’t provide much relief to cardholders. 

By consolidating credit card debt into a lower-interest loan this September, though, borrowers can potentially lock in significantly lower rates than what their credit cards are currently charging. This move could provide immediate relief from high-interest charges and accelerate the debt repayment process. Plus, if credit card rates do eventually decrease, the reduction is unlikely to match the savings offered by a well-timed debt consolidation strategy.

The longer you wait, the more your debt compounds

Another big reason to consider debt consolidation this September is that credit card debt doesn’t stand still — it grows, and often at an alarming rate. Credit card balances are subject to compound interest, meaning that interest is calculated on the principal amount borrowed and also on the accumulated interest from previous periods. This compounding effect can cause debt to snowball rapidly, making it increasingly difficult to pay off.

The longer a balance is carried on a high-rate credit card, the more it will cost in the long run. By waiting to address credit card debt, borrowers are essentially signing up for larger future payments. This is particularly concerning given the current high interest rate environment, where each day of delay translates to more interest accrued.

Consolidating credit card debt in September can put an immediate stop to this growth. By transferring high-interest balances to a lower-interest loan, borrowers can halt the compounding effect and begin making real progress toward paying down their principal. 

The bottom line

With loan rates likely to fall, credit card rates remaining stubbornly high, and the ever-present danger of compound interest, consolidating your credit card debt now could lead to significant financial benefits. By doing so, you can potentially save money, simplify your finances and put yourself on a clearer path to financial stability. That said, it’s important to carefully consider your unique financial circumstances before doing so, but for many, this September could mark the beginning of a journey toward a debt-free future.

Going green isn’t only good for the planet — it can also put some green in your pocket.

The U.S. added 142,000 clean energy jobs last year, with employment in the emerging sector growing more than twice as fast as the rest of the energy industry and the economy overall, the Department of Energy said Wednesday in an annual report. Of the more than 250,000 jobs added in the energy sector last year, 56% involved clean energy, the agency found. 

“The data clearly show that clean energy means jobs — good jobs, union jobs and jobs retained — in communities across the country as we race to dominate the global clean energy economy,” U.S. Secretary of Energy Jennifer Granholm said in a statement.

The sectors seeing significant job growth include zero-emission vehicles and renewable energy, as well as transmission and storage — growth the Biden administration views as essential for meeting its goal of 100% clean electricity by 2035.

In addition to 90,000 traditional energy construction jobs, the agency found 28,000 more in 2023 involved building new battery and solar module factories, ports for offshore wind, and warehouses to store and transport clean energy products.

President Biden in November announced a federal jobs training program — dubbed the American Climate Corps — to employ more than 20,000 young adults to build trails, plant trees, help install solar panels and perform other work to boost conservation while helping prevent catastrophic wildfires. 

Local officials are also increasingly looking to stoke hiring in clean energy. For example, Illinois Gov. JB Pritzker last month announced a $30 million investment to build a clean energy workforce on Chicago’s historically impoverished South and West sides, with the goal of creating more than 1,000 jobs in solar energy over the next three years. In Brooklyn, New York, workshops train electricians for projects dealing with climate resiliency and sustainability.

Globally, job postings requiring at least one green skill jumped more than 22% in 2023 from the previous year, while the share of workers who had clean energy experience rose by just 12.3%, according to findings published by LinkedIn.

The Federal Aviation Administration has grounded SpaceX’s Falcon 9 rockets pending an investigation to determine what caused a first-stage booster to crash onto a landing barge early Wednesday after helping launch another batch of Starlink internet satellites.

After standing down from the piloted Polaris Dawn launch late Tuesday because of an unfavorable long-range forecast, SpaceX pressed ahead with the first of two planned back-to-back launches of Starlinks, one from Florida and the other from California.

But the second flight was called off after the first stage used in the Florida launch crash-landed and toppled into the Atlantic Ocean while attempting to touch down on a SpaceX droneship stationed several hundred miles northeast of Cape Canaveral.

The FAA said it would require an investigation, effectively grounding SpaceX’s Falcon 9 rockets — including the Polaris Dawn booster — until the probe is complete and corrective actions are approved.

“A return to flight of the Falcon 9 booster rocket is based on the FAA determining that any system, process or procedure related to the anomaly does not affect public safety,” the FAA said in a statement.

“In addition, SpaceX may need to request and receive approval from the FAA to modify its license that incorporates any corrective actions and meet all other licensing requirements,” the agency said.

Late Tuesday, SpaceX delayed Wednesday’s planned launch of the Polaris Dawn mission, a commercial flight featuring what will be the first non-government spacewalk, to Friday at the earliest because of predicted end-of-mission splashdown weather. The launching now is on indefinite hold pending the landing mishap investigation.

The landing failure ended a string of 267 successful booster recoveries in a row dating back to February 2021. The Falcon 9’s second stage, however, successfully carried 21 Starlink internet satellites to their planned orbit.

The first stage landing appeared normal until the moment of touchdown when more flames than usual were visible around the base of the rocket as it neared the deck. A landing leg immediately collapsed on touchdown and the booster, obscured by fire and smoke, tipped over the side of the landing barge into the Atlantic Ocean.

“After a successful ascent, Falcon 9’s first stage booster tipped over following touchdown on the A Shortfall of Gravitas droneship,” SpaceX said on social media. “Teams are assessing the booster’s flight data and status.”

It was first stage B1062’s 23rd and what turned out to be its final launch and landing, a new reuse record. SpaceX is working toward certifying its Falcon 9 first stages for up to 40 flights each.

Shortly after the Florida Starlinks were deployed, the company called off the California launch, planned for 5:58 a.m. EDT, to give engineers more time to review telemetry and video footage, on the lookout for any signs of trouble that could affect other rockets.

“Standing down from our second @Starlink launch of the night to give the team time to review booster landing data from the previous launch,” SpaceX said. “A new target launch date will be shared once available.”