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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.
Barry Enderwick is eating his way through history, one sandwich at a time. Every day from his home in San Jose, California, Enderwick posts a cooking video from a recipe that time forgot. From the 1905 British book “Salads, Sandwiches and Savouries,” Enderwick prepared the New York Sandwich.
The recipe called for 24 oysters, minced and mixed with mayonnaise, seasoned with lemon juice and pepper, and spread over buttered day-old French bread.
Rescuing recipes from the dustbin of history doesn’t always lead to culinary success. Sampling his New York Sandwich, Enderwick decried it as “a textural wasteland. No, thank you.” Into the trash bin it went!
But Enderwick’s efforts have yielded his own cookbook, a collection of some of the strangest – and sometimes unexpectedly delicious – historical recipes you’ve never heard of.
Harvard Common Press
He even has a traveling stage show: “Sandwiches of History Live.”
From the condiments to the sliced bread, this former Netflix executive has become something of a sandwich celebrity. “You can put just about anything in-between two slices of bread,” he said. “And it’s portable! In general, a sandwich is pretty easy fare. And so, they just have universal appeal.”
Though the sandwich gets its name famously from the Fourth Earl of Sandwich, the earliest sandwich Enderwick has eaten dates from 200 B.C.E. China, a seared beef sandwich called Rou Jia Mo.
He declared it delicious. “Between the onions, and all those spices and the soy sauce … oh my God! Oh man, this is so good!”
While Elvis was famous for his peanut butter and banana concoction, Enderwick says there’s another celebrity who should be more famous for his sandwich: Gene Kelly, who he says had “the greatest man sandwich in the world, which was basically mashed potatoes on bread. And it was delicious.”
Whether it’s a peanut and sardine sandwich (from “Blondie’s Cook Book” from 1947), or the parmesian radish sandwich (from 1909’s “The Up-To-Date Sandwich Book”), Enderwick tries to get a taste of who we were – good or gross – one recipe at a time.
RECIPE: A sophisticated club sandwich
Blogger Barry Enderwick, of Sandwiches of History, offers “Sunday Morning” viewers a 1958 recipe for a club sandwich that, he says, shouldn’t work, but actually does, really well!
MORE: “Sunday Morning” 2024 “Food Issue” recipe index
Delicious menu suggestions from top chefs, cookbook authors, food writers, restaurateurs, and the editors of Food & Wine magazine.
For more info:
Story produced by Anthony Laudato. Editor: Chad Cardin.
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