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Why you should consider debt relief for August
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In recent years, inflation and higher interest rates purposely designed to tame it have left millions of Americans struggling to make ends meet. And while inflation has dropped substantially from a decades-high in June 2022, it’s still around a point above the Federal Reserve’s target 2% goal. However, a consistently cooling inflation could soon result in a cut to the federal funds rate — and a subsequent reduction in the rates lenders charge borrowers. But while that will be welcome news for the future, it will do little to address the debt many Americans have accumulated over the last few years.
Fortunately, debt relief services can help. These services, which offer debt management plans, debt consolidation loans and even credit card debt forgiveness programs, can help borrowers regain their financial footing. But borrowers will need to be proactive in pursuing their options and many should consider acting as the new month approaches. Below, we’ll detail three reasons you should consider debt relief for August.
See how the right debt relief plan could reduce what you owe here now.
Why you should consider debt relief for August
Not sure if you should pursue a debt relief plan now? Here are three reasons why you should consider it for this upcoming August.
Your interest rates are still high
The average credit card interest rate is around 22% right now while rates on personal loans are approximately 12%. Mortgage rates have come down slightly this year but still hover well over 6% currently – more than double what they were in 2020 and 2021. Even home equity loan and home equity line of credit (HELOC) interest rates, while lower than most alternatives, sit close to 9% now.
So if you have one or more of these sorts of debts your interest rates are already high and will need to be dealt with immediately versus waiting for the rate climate to change favorably. If you wait, and let your debt situation deteriorate further, a lower rate climate won’t be enough to help you dig out of the accumulated debt.
Start the debt relief process online today.
A reduction in rates will be minimal to start
Sure, a reduction in the federal funds rate looks imminent (more than a 90% chance for September, according to the CME FedWatch tool) but any cut that’s issued will be minimal to start, offering some much-needed but still negligible relief. For many, the rate cut to come won’t be worth forgoing the relief they can get now by consolidating their debts into a lower-rate loan, for example.
Some borrowers, meanwhile, may already be eligible for credit card debt forgiveness. So it’s critical to closely review your current situation to determine if you can hold off for interest rate reduction relief — or act now to start improving your situation. For many, this August could be the smart time to take action.
The process will take time
Debt relief, no matter the solution chosen, will not provide an overnight fix. It won’t even work completely in one month. Each option has its own timeline and will require due diligence on behalf of the borrower, consistent payments and closely following the agreed-upon parameters. And it could still take months or even years. Credit card debt forgiveness, for example, could take between two to four years – and that’s assuming you don’t add more debt in the process. So if you already suspect that you need help getting out of debt now, August 1 could be a good time to start the debt relief process. Waiting around could result in additional deterioration to your financial health and credit score.
The bottom line
Those coping with major debt don’t have the luxury of waiting for the economy to improve to have their debt burdens reduced. Not only is an economic improvement not a guarantee, any interest rate reductions will be minimal to start. In the interim, interest rates on your current debt may already be prohibitive. And any debt relief option will take time and patience to complete, so it behooves many borrowers to act aggressively. For all of these reasons, this August marks a smart time to consider debt relief. Just be sure to carefully weigh the pros and cons of each in order to ensure that the option you ultimately choose is the most appropriate one for your unique financial circumstances.
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Paul Whelan, freed in prisoner swap with Russia, tells other American detainees: “We’re coming for you”
Washington — Nearly seven weeks after the Russians handed over Paul Whelan on a tarmac in Ankara, Turkey, the Marine veteran stood on the steps of the U.S. Capitol with a message for other Americans who are held abroad.
“We’re coming for you,” he told reporters Tuesday night after he met with lawmakers. “It might take time, but we’re coming.”
Whelan said he spoke with lawmakers about how the government can better support detainees after they’re released.
“We spoke about how the next person’s experience could be better,” he said. “What the government could do for the next person that’s held hostage and comes home — the care and support that other people might need, especially people that are in a worse situation. There are people coming back that lived in the dirt without shoes for three years, people that were locked up in hideous conditions for 20 years. They need support.”
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The U.S. secured Whelan’s release in August in one of the largest prisoner swaps since the end of the Cold War. The complex deal came after months of sensitive negotiations between the U.S., Russia, Germany, Slovenia, Poland and Norway.
As part of the deal, Russia released 16 prisoners while the Western countries released eight Russians. Whelan was released alongside Wall Street Journal reporter Evan Gershkovich, Russian-American radio journalist Alsu Kurmasheva and Vladimir Kara-Murza, a U.S. green card holder and Kremlin critic.
Whelan, who had been the longest-held American detainee in Russia, was arrested in December 2018 when he traveled to the country to attend a friend’s wedding. He was convicted of espionage in a secret trial and sentenced to 16 years in prison in 2020.
Whelan, his family and the U.S. government vehemently denied that he was a spy and accused Russia of using him as a political pawn. The U.S. government considered him to be wrongfully detained, a rare designation that put more government resources toward securing his release.
But a deal to secure his freedom was long elusive. He remained behind bars as Russia freed Marine veteran Trevor Reed and women’s basketball star Brittney Griner — both of whom were detained after Whelan’s arrest — in prisoner swaps with the U.S.
The U.S. said it pushed for his inclusion in both exchanges, but Russia refused. It led to Whelan advocating for his own release from a remote prison camp, calling government officials and journalists to make sure that he wasn’t forgotten.
When the plane carrying Whelan, Gershkovish and Kurmasheva landed in Maryland on Aug. 1, Whelan was the first to disembark. He was greeted by President Biden, who gave Whelan his American flag pin, and Vice President Kamala Harris.
“Whether he likes it or not, he changed the world,” Rep. Haley Stevens, a Michigan Democrat, told reporters Tuesday.
Whelan’s case and his family’s constant pressure on the U.S. government brought more attention to the cases of Americans who are wrongfully detained by foreign governments.
Haley said Whelan is a reminder to other Americans considering traveling to Russia that “you have a target on your back.”
Whelan said it’s been an adjustment acclimating to life back in the U.S., especially learning the latest technology like his iPhone 15.
“I was in a really remote part of Russia,” he said. “We really didn’t have much. The conditions were poor. The Russians said the poor conditions were part of the punishment. And coming back to see this sort of thing now is a bit of a shock, but it’s a good shock.”