National household finances are still being squeezed by economic forces. Additionally, the Federal Reserve decided to temporarily suspend the federal funds rate after the most recent data revealed an increase in inflation.
National household finances are still being squeezed by economic forces. Additionally, the Federal Reserve decided to temporarily suspend the federal funds rate after the most recent data revealed an increase in inflation. (Photo : Towfiqu barbhuiya / Unsplash)
This is significant since consumer interest rates are based on the federal funds rate. Additionally, borrowing costs have increased along with credit card rates due to the benchmark rate being stopped at a 23-year high.
You might be thinking about filing for bankruptcy if you are unable to make your increasing credit card bills. Although filing for bankruptcy might be a good approach to get rid of debt, there might be other options.
It might seem like your only option when you're drowning in debt is bankruptcy, but there are other possibilities as well, such as:
Sign Up For a Debt Management Program
It can be wise to contact a debt relief organization if you cannot make your monthly payments. Generally, these services assist you in developing a debt relief strategy that doesn't place undue strain on your finances.
Debt relief providers will often negotiate your interest rates or principal amounts with your lenders as part of this arrangement. They could then be able to lower your credit card payments and assist you in paying off debt more quickly than you otherwise could.
By making budget cuts, you might be able to speed up your repayment schedule and save more money for debt repayment.
If you often purchase lunch out or grab a cup of coffee on your way to work, for instance, cooking your meals and making your coffee at home might save you a significant amount of money over time. You may also consider finding additional methods to reduce your spending or switching from cable to more affordable streaming providers.
Look For Ways To Boost Your Income
It might also be feasible to pay off your debts more quickly if your income increases. While it is possible, doing so doesn't imply you have to take on a second job. However, you might also make money from a pastime or other enjoyable activity.
If you want to paint, for instance, you might want to sell your creations online or at a nearby craft fair. Alternatively, if you like construction and building, you may earn some additional cash by taking on some handyman jobs. The secret is to consider your interests and figure out how to leverage your pastime to increase your income.
Offload Superflous Assets
Do you have a car that needs repairs lying in your driveway, old jewelry in your jewelry box, or a piece of property you bought years ago but have no plans for? Selling these and other assets might allow you to receive the money you need to pay off your debt.
