Interest rates are coming down again. That was the big economic news on Thursday after the Federal Reserve issued another cut to its federal funds rate. Now at a range between 4.50% and 4.75%, Thursday’s 25 basis reduction wasn’t as big as September’s half a percentage point cut was. But it’s still a step in the right direction for borrowers, many of whom have contended with elevated rates on a variety of products for much of the last two and half years.

That’s been particularly true for credit card users and it’s been especially painful considering that the average American has around $8,000 in credit card debt right now. And while any reduction in rates is welcome against this backdrop, even in relatively small increments, it may not offer the major relief that many borrowers actually need right now. 

In these circumstances, credit card debt forgiveness may be the better alternative. But is it worth for you? Below, we’ll break down three big reasons why credit card debt forgiveness makes sense even as the Fed continues to cut rates.

See how much credit card debt you could have forgiven here.

Why credit card debt forgiveness makes sense even with more Fed rate cuts

Do you think it’s worth waiting for rates to continue to come down instead of tackling your credit card debt now? Here are three reasons why you may be better served by utilizing the services of a credit card debt forgiveness program:

Rates are too high for cuts to help

The average credit card interest rate just hit a new high last week, coming in at just over 23%. What relief, then, will a 0.25% rate cut offer to borrowers stuck paying that rate? And that’s on the assumption that credit card rates will even fall by that minor amount when, in many cases, they won’t. That’s because credit card rates are influenced by a variety of factors, of which the federal funds rate is just one minor component. Understanding that rates are too high for cuts to offer material help, then, many would be better off by exploring their debt forgiveness options instead.

Get started with a credit card debt forgiveness program now.

Your debt is compounding

Making minimum payments toward your credit card debt could result in years and potentially decades’ worth of payments before your debt finally hits zero. That’s because your debt will compound with interest and potentially fees and penalties, depending on your current repayment approach. Use a credit card calculator online to determine what your realistic payoff timeline is. If it’s longer than you can reasonably afford — and you meet other credit card debt forgiveness eligibility requirements — you may ultimately be better off by stopping your current payments and working toward a forgiveness strategy instead.

It can dramatically reduce what you owe

Credit card debt forgiveness won’t wipe your debt entirely. But it could potentially reduce it by 30% to 50%, depending on your financial circumstances. And that could be all you need to regain your financial footing. Combine that reduction, then, with additional rate cuts in the future that will inevitably lighten your debt burden and you’ll be in a much more advantageous position than you currently are. It will require a combination of debt forgiveness and rate cuts, however — not just one — to help you improve your financial health.

The bottom line

A federal funds rate cut is welcome news for all borrowers but the affect it will have on those coping with high rate credit card debt will be muted and will remain so for the forseeable future. Understanding this dynamic, then, borrowers should strongly consider turning to credit card debt forgiveness for assistance. And with other debt relief options also available, there’s likely a way toward resolving your existing debt. Just don’t sit idle. With rates high, rate cuts unlikely to offer much immediate relief and your existing debt compounding, it makes sense to take action sooner than later.