3 reasons why debt relief could be worth pursuing this September

As this year has progressed, the process of managing debt has become a lot more challenging for borrowers. Earlier hopes that borrowing and rate conditions would steadily improve have been upended by persistent inflation and renewed uncertainty over where the economy — and, in turn, borrowing costs — go from here. Those types of issues can have a big impact on a wide range of borrowers, but the ongoing uncertainty is particularly difficult to ignore for those who are already stretched by monthly debt payments .

And, this September, borrowers who have been waiting for some relief from those high-rate, inflationary pressures may need to reconsider whether waiting for the landscape to change still makes sense. After all, when you're already struggling to keep up with what you owe, delaying action can mean spending more money on interest while making limited progress on your balances. And depending on what happens next with the economy, the conditions for paying down certain types of debt could become even more challenging.

That's where the idea of debt relief comes in. While pursuing debt relief isn't an appropriate solution for everyone, the circumstances borrowers are facing right now make this September a particularly useful time to reassess whether it's time to get professional help.

Debt relief can take several forms, from debt consolidation programs that restructure multiple high-rate balances into a more manageable payment to debt settlement programs that attempt to negotiate reductions in what you owe. Whether one of these approaches makes sense ultimately depends on your full financial picture, but the following factors could make debt relief worth considering now:

The Federal Reserve is slated to meet again on September 15 and 16, and while there's no guarantee that officials will raise rates, another hike could be on the table. Not only does inflation remain above the Fed's 2% target, but Fed Chair Kevin Warsh recently indicated that policymakers still have work to do to bring rising prices under control.

That's an important risk to note if you're carrying credit card debt because credit card rates are variable, meaning that a Fed rate hike could ultimately lead to higher credit card rates . So, if the Fed rate rises, carrying a balance could become even more expensive, with more of your monthly payment going toward interest rather than reducing what you owe.

And, if you're already struggling to make progress on what you owe, this September, it could make more sense to explore debt relief rather than waiting to see what happens. Depending on your situation, consolidating your debt could help lower the cost of repayment and streamline the process, while debt settlement could potentially reduce the amount you owe , and in many cases, settlement can result in 30% to 50% savings compared to the full balance. Taking action now, before borrowing costs potentially rise again, could make it easier to get ahead of your balances before they become even more difficult to manage.

Right now, credit card debt is extraordinarily expensive for the average borrower carrying a balance from month to month.