Latest news with #debtrelief
CBS News
11 hours ago
- Business
- CBS News
Will credit card interest rates fall this June?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Credit card users have been awaiting a drop in rates but the chances of that happening looks uncertain now. Getty Images Just under 22%. That's what the average credit card interest rate is right now. Technically, at 21.37%, according to recent data from the Federal Reserve Bank of St. Louis, credit card rates are just under a recent record high of 23%. While that's an exorbitant rate for any borrowing product, it's particularly problematic for credit card users thanks to compounding interest that can accumulate daily, causing even manageable debt balances to quickly grow out of control. And in the current economic climate, plagued by market uncertainty, higher interest rates and stubborn inflation, it's no surprise to learn that the average credit card debt is close to $8,000 now – and the cumulative amount Americans now owe is over $1 trillion. Against this backdrop, then, many borrowers may be ready to explore their debt relief options. And that could be a smart idea, especially when considering the likelihood of credit card interest rates declining this June. Below, we'll explore that potential in closer detail as well as what next steps borrowers may want to take to regain their financial independence. Start by seeing which debt relief option could be right for you here. Will credit card interest rates fall this June? The odds of a credit card interest rate decline this June are relatively low. Here's why: A rate cut appears unlikely The Federal Reserve has not issued an interest rate cut since December 2024 and the central bank doesn't appear poised to issue another one this month. The CME Group's FedWatch tool has a rate cut for when the Fed meets again on June 17 and June 18 listed at just a 4.7% chance. A higher federal funds rate, then, will essentially give credit card companies the coverage they need to keep rates high. And, even if Fed rate cuts are issued later in the year, they're likely to be in the amount of just 25 basis points, which will barely trickle down into the credit card interest rate climate, underlying the importance of taking proactive steps to reduce your credit card debt in the interim. Explore your credit card debt relief alternatives now. Credit card rates are influenced by more than just the Federal Reserve Even when (or if) Fed rate cuts are issued, they're likely to have a muted impact on credit card rates, at least to start. That's because credit card rates are impacted by more than just the Federal Reserve. This was proven in late 2024, amid the recent Fed rate cut campaign, when the bank issued three consecutive rate cuts, credit card rates actually climbed to a new high. Impacted by items like the prime rate, too, credit card users will need a series of factors to align to see credit card rates decline, and it'll have to happen over an extended and sustained period, to make a material difference in what they pay each month. And that's unlikely to all occur before June 30. Economic uncertainty remains a concern With inflation declining, interest rates frozen, stock market performance rising and falling and economic policies and strategies in flux right now, most credit card companies won't be rushing to reduce the rates they offer borrowers. Until the market stabilizes, inflation concerns subside and stock market volatility wanes, credit card rates are likely to remain high for borrowers. Waiting, then, to take action to address your credit card debt is largely unadvisable. Credit card debt relief options to explore now So, credit card rates are likely to remain high for the foreseeable future. But that doesn't mean you need to let your debt situation deteriorate further. Instead, consider your eligibility for a series of debt relief options. Credit card debt forgiveness, for example, can result in you having your credit card balance cut by 30% to 50%, depending on your eligibility. Debt consolidation loans, on the other hand, can help you reduce your interest rates almost immediately by consolidating your credit card balances with a low-rate personal loan instead. Balance transfer credit cards, meantime, may seem counterintuitive since they'll require opening another credit card but these often come with much lower rates than what you already have, allowing you to make one payment on one card each month (and you'll dramatically cut your balance in the interim). So, be proactive and research your options. You may be surprised at how powerful (and cost-effective) some of these are for your debt situation. The bottom line Thanks to a combination of a paused federal funds rate, an unmoved prime rate and general uncertainty over the direction of the economy, credit card interest rates are highly unlikely to drop this June. But that doesn't mean borrowers still don't have debt relief options worth exploring, they'll just require more independent work than may have been required in a cooling credit card rate climate. But if that due diligence and effort is done strategically, it will still lead borrowers to their final destination: freedom from high-rate credit card debt.
CBS News
13 hours ago
- Business
- CBS News
How to cut credit card debt starting this June
There are multiple ways in which borrowers can start cutting their credit card debt this June. Getty Images The start of a new month can offer borrowers a fresh start and, this June in particular, it may be a smart time to revisit your credit card debt situation. Currently, the average credit card debt balance hovers around $8,000. And throughout the United States, the cumulative credit card debt balance sits over $1 trillion currently, a May report showed. While that's actually down slightly from the final quarter of 2024, balances overall are still up around 6% from the same time period last year. Combine this reality with an elevated interest rate climate, the prospect of lower credit card interest rates dim and lingering inflation issues and it becomes clear that the time is right to tackle your credit card debt before it grows further out of control. But how do you do that and where do you even begin? Fortunately, there are multiple debt relief options available that you could qualify for, some of which can you help you start on the path toward reducing your credit card debt as soon as this June. Below, we'll break down four options to explore right now. Start by reviewing your credit card debt forgiveness options online today. How to cut credit card debt starting this June Want to start cutting your credit card debt this month? Here are four viable options to consider: Balance transfer credit cards Balance transfer credit cards operate precisely as the name suggests. Borrowers can transfer their existing credit card balance from one account to another, with the balance transfer card typically coming with a low or 0% introductory interest rate. This allows borrowers to save on interest that they'd otherwise have been stuck paying with the initial card, and it will allow them to make a greater dent toward paying their debt off entirely, as their new payments will apply more toward the principal balance. That said, balance transfer rate offers are limited and will typically only last for a small amount of time, so if you choose this alternative, be prepared to be aggressive in the limited time you have. Explore your top credit card debt relief options here. Debt consolidation loans The average personal loan interest rate is just under 13% now, while the average credit card interest rate is just under 23%. So, if you can consolidate your credit card debt with a personal loan, it makes obvious financial sense to do so. And the great feature about debt consolidation loans is the flexibility (besides the low rate). These sorts of personal loans can be secured independently by borrowers or with the help of a debt relief company, giving you two viable ways to start chipping away at your debt. That said, you'll generally need to have good credit to qualify for a low debt consolidation rate but, if you do, this can be a helpful alternative to consider. Debt management programs Have a credit card debt situation that will only resolve itself with a hands-on approach from an expert? Then, a debt management program can be the solution for you. These programs start with a financial assessment of your situation and proceed to negotiations with credit card companies to (hopefully) reduce your credit card rates and they'll often move on to a payment plan completion and, with that, a structured debt payoff timeline. Programs differ from company to company but they can be viable for those who want to start cutting their debt load this month but don't know where or how to start the process. Credit card debt forgiveness Credit card debt forgiveness may not apply to everyone with a debt balance but it could be the right solution for many who have credit card debt in the amount of $5,000 or higher. If you owe that much to your credit card companies, are already delayed in payments and have one or more financial hardships that you can document underlying your inability to make payments, this could be the debt relief solution you need. That noted, credit card debt forgiveness is not an overnight fix. You can start the process (if you qualify) this June, but it typically takes two to four years to complete. But that end result could mean forgiveness of up to 50% of your credit card debt, so the timeline may be worth it, depending on the severity of your debt amount. The bottom line With multiple credit card debt relief strategies and programs available, and with the urgent need to regain your financial freedom particularly high this June, now could be the time to take action. By reviewing these four potential options and evaluating your unique credit card debt situation, you can better determine which makes the most sense for you now and, more importantly, start the delayed work of cutting your credit card debt permanently.
Associated Press
17 hours ago
- Business
- Associated Press
Money Management International Wins 2025 Communicator Award, Honorable Mention in PRWeek Purpose Awards
STAFFORD, Texas, June 02, 2025 (GLOBE NEWSWIRE) -- Money Management International (MMI) is proud to announce that its MMI Peer Advocate Program has won an Award of Distinction as a public relations campaign in the 2025 Communicator Awards. It has also received an honorable mention for Best Public Awareness in the 2025 PRWeek Purpose Awards. These recognitions highlight the program's powerful impact in raising awareness about the real-life challenges and triumphs of individuals navigating financial hardship and recovery. Launched in 2021 to highlight debt stigma and nonprofit debt relief solutions, the program leverages the lived experience of Americans who have overcome seemingly insurmountable debt. The program enables MMI clients to share their stories through local and national media platforms. In 2024 alone, the program helped MMI earn more than 130 million broadcast media impressions, shining a spotlight on the realities of financial stress and the hope that comes from nonprofit debt management support and empowerment. These latest recognitions follow a growing list of honors for the MMI Peer Advocate Program. In 2024, the program earned silver in The Anthem Awards, celebrating purpose-driven work around the world. It was also recognized with an honorable mention in the 2023 PRNEWS Digital Awards, highlighting its innovative approach as a brand ambassador program. 'We're incredibly proud of our team, including nearly 500 MMI Peer Advocates across the country who make this program so powerful,' said Thomas Nitzsche, Vice President of Public Relations at MMI. 'Our advocates' courage and authenticity have helped millions better understand the human side of financial instability. The recognition from the Communicator Awards and Purpose Awards reaffirms the importance of this work in driving real change.' For more information about the MMI Peer Advocate Program and to hear stories of financial transformation, visit MMI's YouTube channel and 2024 Annual Report. About MMI For over 65 years, Money Management International (MMI) has been at the forefront of financial health solutions, helping individuals and families break free from debt and build a secure financial future. As a trusted nonprofit leader, MMI is dedicated to transforming how Americans navigate financial challenges by providing expert guidance, innovative programs, and culturally relevant financial education. Recognized by major financial institutions and media outlets, MMI's award-winning services support long-term financial stability and success. Learn more at Media Contact: Thomas Nitzsche 404.490.2227 [email protected] Jackie Callaway Media Relations 813.610.8241 [email protected] Thomas Nitzsche Money Management International 404.490.2227 [email protected] Jackie Callaway Money Management International 813.610.8241 [email protected]
Yahoo
3 days ago
- Business
- Yahoo
How to choose the right debt settlement company for you
Debt settlement requires you to pay a lump sum to creditors for less than you owe and have the remaining balance forgiven. To choose the right debt settlement company, compare the cost, eligibility requirements and reputation of each company. There may be other options for relief, including debt management or consolidation. You might have seen ads promising that you can settle your debt for much less than you owe. If you have a lot of debt with accompanying and persistent collection calls, you might wonder if these companies can provide the debt relief options they promise. To an extent, they can. Debt settlement companies can be a solution to freeing yourself from debt. But finding a reliable, trustworthy agency goes beyond calling the 800 number in the ads or even doing a quick internet search. Before you choose a debt relief company, you should determine if it's the right solution for your situation, then research legitimate companies with agreeable terms. What is debt settlement? Debt settlement is the act of negotiating with creditors and lenders to accept a lump sum payment lower than what is owed and forgive the rest. Debt settlement companies differ in their terms, plans, requirements and even their legitimacy. Consider these factors when choosing a company to work with. Debt-settlement companies earn revenue by charging fees equal to a percentage of the initial or settled debt — typically between 15 and 25 percent. Possible additional costs might include account setup fees and monthly service expenses. These costs could pose an additional burden if you're already struggling financially. A legitimate debt relief company can't legally ask for upfront payment, so any such request is a red flag. Ask for a breakdown of anticipated costs and fees before signing the dotted line. You might not owe enough to work with some debt relief companies. These firms obtain the majority of their revenues on a percentage of existing or settled debt, so you'll need to have a minimum amount to make it worth their while. The generally quoted debt requirement is at least $10,000, though some debt-relief companies can go as low as $7,500. Debt relief scams are prevalent in the finance industry, so it's important to be on guard. Sure signs of a scam are a company that: Contacts you first. Has repeated complaints of fraud, poor customer service or failed results. Uses aggressive sales tactics or over-promises. Another way to determine if a debt relief company is legit is to check how long it has been in business. If that company has been in business for several years, chances are it isn't a 'fly-by-night' firm with dishonest aims. Along those lines, the Federal Trade Commission has a database of banned debt relief companies that are essentially prohibited from offering debt settlement services. Another way to determine reputability is with accreditation. Membership in and accreditation by the American Association for Debt Resolution — formerly the American Fair Credit Council — isn't essential for debt relief agencies. It does, however, lend a level of credibility to the company. AADR members are held to strict operating standards and are audited regularly to ensure they follow regulations. As an added protection, be sure you're working with an accredited debt settlement counselor rather than a salesperson. A counselor certified by the International Association of Professional Debt Arbitrators (IAPDA) can generate trust that the individual will support your best interests rather than doing it for the commission. Additionally, some states require that debt settlement counselors be IAPDA-certified. During the research process, be sure to explore the following with any company you consider: Length of time in business. How much debt the company helped settle. Whether commissions are involved — if the answer is 'yes,' you could be dealing with salespeople rather than accredited debt counselors. The debt settlement process and estimated time frame. While you're asking these questions, be wary if you run across these red flags: The company claims it can settle your entire debt for a promised percentage reduction. The company touts a 'new government program' to get rid of your credit card debt. The company issues an iron-clad guarantee that it can cancel your debt. The company claims it can stop all debt collection calls or lawsuits. The company says it can pay off your unsecured debts for pennies on the dollar. If any debt settlement company makes promises that seem too good to be true, they probably are. When to consider debt settlement Debt settlement may be a good option when: The debt is unsecured. You're already behind on payments. You've tried other methods, like debt management or consolidation. You're okay with settling between 10% and 50% of your debt. Your only other option is bankruptcy. You get a windfall that could pay a lot, but not all, of your debt in one lump sum. Debt settlement comes with risks. Because you're asked to stop making payments as part of the debt settlement plan, your credit score may drop significantly and you may continue to get debt collection calls and threats. According to Andy Manthei, Change Cultivator at GreenPath Financial Wellness, creditors may take legal action and the debt settlement may show up in your credit report. He also warns that the IRS may see the forgiven debt amount as income, which you'll be taxed on. If possible, consider these options first. Debt management programs help you lower your monthly payment through actions like interest rate reduction and debt consolidation, and are created and managed by credit counseling agencies or nonprofits. Instead of paying creditors, you pay the agency or organization and they make the payment on your behalf. According to Manthei, debt management can drop your monthly payment by hundreds of dollars, while also decreasing the payoff timeline, total interest paid and total cost. If the various debts, payments and interest rates are overwhelming, consider consolidating your debts into a 0 percent balance transfer card or debt consolidation loan. Doing so will create one debt with one interest rate and monthly payment, making it easier and potentially faster to pay down your debt. Use a debt consolidation calculator to see if this option makes sense for you and get an idea of what your payment would look like. Get in touch with creditors or lenders directly, explain your situation and ask if you can work out a plan that includes reasonable monthly payments. Creditors may already have a preset plan for when life happens, which may include certain hardship programs, late-fee pauses and rate reductions. 'Some creditors, depending on the level of hardship, may even go to 0% [interest],' Manthei says. Those late-night ads might paint debt settlement companies as the answer to your woes. But before you make the call, carefully examine the background of the advertised company. If you're having severe financial difficulty and can't pay what you owe, debt settlement companies can be a solution. The above tips for choosing a debt relief company can help you find one that's reputable and trustworthy. This, in turn, can help alleviate the stress connected to seemingly insurmountable debt so you can work toward a fresh financial start. Remember, too, that it isn't the only option. According to Manthei, borrowers should try to avoid tunnel vision, take a step back to see the broader picture and see that there are options. Do a little research to understand the differences and find the best route. Most importantly, says Manthei, 'know you are not alone and it's going to be ok.' Sign in to access your portfolio
CBS News
4 days ago
- Business
- CBS News
Credit card debt, interest rates and what borrowers should do right now
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Paying off your high-rate credit card debt should remain a priority, even in today's unique economic atmosphere. unknown/Getty Images The news released this May that credit card debt balances were declining appeared to be positive on the surface. Certainly, a decline in what borrowers owe is preferable to a spike. But upon closer examination, this seemingly good news wasn't exactly what it appeared to be. For starters, credit card balances in the United States in the first quarter of 2025 remained very high, at a total of $1.18 trillion. While that was down $29 billion from the previous quarter, it still represented a 6% rise from the same period in 2024. And with the average credit card debt hovering close to $8,000 currently, there's likely a lot of work left for borrowers to complete to regain their financial freedom. And that work shouldn't be put off any further, particularly in today's unique economic atmosphere. Fortunately, there are multiple debt relief options available that are worth exploring, some of which borrowers may want to get started with as soon as this June. Below, we'll detail why they should act quickly – and how they may want to do so. Start by checking your credit card debt relief eligibility requirements here. Credit card debt, interest rates and what borrowers should do right now Not sure if it's worth taking aggressive action to reduce your credit card debt? Here are three items to consider to help you determine your next steps: Your current credit card debt amount Sure, you may owe less than that $8,000 average amount … or you may owe more. Either way, if you can't pay off what you owe in its entirety, then it may make sense to pursue some form of debt relief. And that doesn't have to mean utilizing the services of a debt relief provider, as options like balance transfer credit cards and debt consolidation loans may be able to be secured on your own, and dramatically reduce your interest rates in the interim, providing a clearer path toward total debt payoff. Just don't sit idle, no matter which option you prefer, as credit card interest compounds daily, turning even a manageable debt load prohibitive. Explore your alternative debt relief solutions online now. The broader interest rate climate If your plan is to wait for the broader interest rate climate to cool and, for that cooling to significantly reduce your currently high credit card interest rates, then you may be waiting for a very long time. Right now, there's almost no chance of a fed rate cut for when the central bank meets again in June (the CME Group's FedWatch tool has a rate pause there listed at nearly a 100% certainty). Rate cuts could become more realistic in July, but even then, by just 25 basis points, which will have little to no impact on your credit card rates (which are influenced by multiple factors besides just the Fed). Being realistic about this interest rate climate, then, and its likelihood to change in a helpful way soon, can better help you move to the next step this June: finding the right debt relief option for your particular situation. Your debt relief alternatives Did you know that you could qualify to have 30% to 50% of your credit card debt forgiven? If you meet certain qualifications, this is certainly possible. But it's not the only way to get rid of your credit card debt with aforementioned items like balance transfer credit cards, debt consolidation loans possible too, along with credit counseling, debt management programs and more all playing critical roles for borrowers in need of a debt solution now. You won't know which is applicable to your unique situation, however, until you've taken the time to explore and research all of them. Consider doing so now, then, and make this June the first stop on your journey toward full financial freedom. The bottom line The economic climate credit card users find themselves in this June isn't exactly a favorable one. With credit card balances high, interest rates elevated and the prospect of relief for either dim, it makes sense to be proactive with an appropriate debt relief approach. By understanding the dynamics of today's economy and being realistic about these developments, borrowers can feel more comfortable exploring their debt relief options and, from there, choosing one (or multiple) that can help them reduce what they owe once and for all.
