3 Smart Debt Relief Moves to Make This June (and 3 to Avoid)

June is upon us and soon, summer will be in full swing. However, if you have debt you are having a hard time while you’re dealing with it, you likely have other things on your mind. But, you are not alone. Debt is a normal challenge to face across the United States and there are many solution for it – although, some more effective than others.

With so many moves you can make regarding your debt, it can be difficult to determine which moves are smart and which to avoid, especially now that inflation is still a concern and interest rates are high. . Against this background, it is important to know which Smart debt relief moves to make this June and which should be avoided.

Discuss your debt relief options with an expert now.

3 Smart Debt Relief Moves to Make This June (and 3 to Avoid)

To ensure the most effective debt relief option, it is critical to know what steps to take and which to avoid. Debt, especially high interest debt, can be challenging to deal with. But there are some smart moves you can make to start getting out of debt this June.

Act Now

First of all, you need to act now. If you wait too long, you could face higher interest rates up front. That’s because the Federal Reserve meets on June 11 and 12, 2024 to discuss monetary policy. And with inflation remains stableThe Fed may decide to raise the federal funds rate after the meeting.

If this happens, the interest rates on any variable rate debt you have could go up since your lenders can use the federal funds rate as a benchmark for what they’ll charge you. So act now before rates have a chance to rise and your debts become more expensive.

Get the debt relief help you need now.

Discuss your options with a debt relief expert

Making payments on your debt can be challenging in today’s inflationary environment. But, a debt relief expert i can help you There they are some debt relief solutions which may be worth considering. And, a debt relief expert will be able to help you navigate those solutions to find the one that best suits your needs. By doing so, you may be able to cut the monthly cost of your debtmaking it easier to afford today’s higher cost of living.

Consolidate at a lower rate

Another thing to consider that can produce savings in today’s inflationary environment is debt consolidation. “Debt consolidation reorganizes your finances by consolidating multiple obligations into a single, potentially lower-interest payment,” explains Michael Broughton, founder and CEO of credit-building app ALTRO. “This approach can improve your cash flow management and can speed up your debt repayment journey.”

While there are smart moves you can make with your debt this June, there are also some moves you should avoid. This includes:

Adding new debt to the mix

Considering today’s high interest rates, it is wise to avoid taking on any new debt. After all, taking on new debt means you could find yourself paying higher interest rates on another account or building higher balances in your checking accounts — increasing your monthly debt costs.

Making minimum payments

Just making minimum payments is usually a bad idea. But doing so with today’s high interest rates can become even more costly. Since these types of payments will be used to pay interest, you’ll make little progress on your principal balances unless you make larger payments—which means you could be in debt for a long time if you don’t adjust your payment strategy.

Ignoring your debt

Finally, it is it’s never a good idea to ignore debt. Ignoring debt “can lead to interest accruing, late fees and possible damage to your credit score,” explains Evan Patzer, a retirement strategy specialist at financial planning firm LifeWealth Solutions.

And, if you ignore your debt for too long, your lenders can take you to court and win a judgment. If this happens, it can put your income and property at risk. So it’s best to work with your lenders if possible, and if not, contact a debt relief professional to address your debts before any of the above consequences have a chance to materialize.

After all

Debt doesn’t have to be challenging. Making smart decisions this June with your debt can help you reduce your monthly payments while fast-tracking your debt repayment journey. So act now and contact a debt relief provider. Or, use a debt consolidation loan to reduce your monthly expenses and simplify the repayment process. But whatever you do, don’t add new debt to the mix, avoid minimum payments, and never ignore what you owe. Find out how a debt relief expert can help now.