CBS News
Why you should consider debt relief for August
Getty Images
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.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
A food company known for popular grocery store condiments has recalled a package of tortilla strips that may be contaminated with wheat, the U.S. Food and Drug Administration said Friday. The product is meant to be gluten-free.
Sugar Foods, a manufacturing and distribution corporation focused mainly on various toppings, artificial sweeteners and snacks, issued the recall for the “Santa Fe Style” version of tortilla strips sold by the brand Fresh Gourmet.
“People who have a wheat allergy or severe sensitivity to wheat run the risk of serious or life-threatening allergic reaction if they consume the product,” said Sugar Foods in an announcement posted by the FDA.
Packages of these tortilla strips with an expiration date as late as June 20, 2025, could contain undeclared wheat, meaning the allergen is not listed as an ingredient on the label. The Fresh Gourmet product is marketed as gluten-free.
Sugar Foods said a customer informed the company on Nov. 19 that packages of the tortilla strips actually contained crispy onions, another Fresh Gourmet product normally sold in a similar container. The brand’s crispy onion product does contain wheat, and that allergen is noted on the label.
U.S. Food and Drug Administration
No illnesses tied to the packaging mistake have been reported, according to the announcement from Sugar Foods. However, the company is still recalling the tortilla strips as a precaution. The contamination issue may have affected products distributed between Sept. 30 and Nov. 11 in 22 states: Arizona, California, Colorado, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Maryland, Maine, Michigan, Minnesota, North Carolina, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Utah, Virginia and Washington.
Sugar Foods has advised anyone with questions about the recall to contact the company’s consumer care department by email or phone.
CBS News reached out to Sugar Foods for more information but did not receive an immediate reply.
This is the latest in a series of food product recalls affected because of contamination issues, although the others involved harmful bacteria. Some recent, high-profile incidents include an E. coli outbreak from organic carrots that killed at least one person in California, and a listeria outbreak that left an infant dead in California and nine people hospitalized across four different states, according to the Center for Disease Control and Prevention. The E. coli outbreak is linked to multiple different food brands while the listeria outbreak stemmed from a line of ready-to-eat meat and poultry products sold by Yu-Shang Foods.
