What borrowers should do with inflation unmoving

Additional inflation relief looks to be delayed. That was one of the major takeaways on Tuesday when the latest inflation reading showed inflation in July at the same point it was in June – 2.7%. While that’s still materially lower than the plus-9% rate it had hit a few summers ago, it’s still not what Americans want to hear after contending with elevated costs for more than three years now. And it’s especially not advantageous for savers as a frozen rate almost a point above the Federal Reserve’s target 2% goal helps ensure that higher borrowing rates will remain where they are, at least in the short term.

But that doesn’t mean borrowers need to sit by idly, either. Nor should they. With rates on personal loans and credit cards high now, for example, taking action is likely the smart move, especially with stubborn inflation unmoving. But, what, exactly, should these borrowers be doing right now in response? Below, we’ll examine three steps that could be worth taking now.

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What borrowers should do with inflation unmoving

A stubborn inflation rate can be disappointing, or it could be used as the motivation for borrowers to finally start the delayed work of regaining their financial independence. If that’s your goal, then consider making these moves now:

Stop waiting for external relief

Sure, the inflation rate is stuck now, and interest rate cuts may or may not be issued in September. Regardless, waiting for external relief, either from a declining inflation rate (and any trickle-down impacts) or the Federal Reserve to cut rates, doesn’t make sense now, especially if your credit card interest is compounding at that near record-high average credit card rate. Instead, take the first step and look to dig out of debt, even if that ultimately means employing the services of a top debt relief company. The first step needs to be a proactive one, and that starts with the grudging reality that no external relief is coming in any measurable amount anytime soon.

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Start exploring your debt relief options

Credit card debt forgiveness. Debt consolidation loans. Debt management programs. Credit counseling. These are just some of the debt relief options that can help you right now, either in conjunction with one another or individually. But you won’t know which of these are applicable to your specific situation until you take the time to research each carefully. Do that now. With the economy in a bit of a holding pattern at the moment and inflation frozen in place, now is a smart time to explore your debt relief options before the economy potentially changes again — and your debt potentially compounds at an even higher rate.

Make sure to address the root causes

Being realistic about the chances for external relief to arrive and taking aggressive, calculated steps on your own is important right now. But neither will matter if you don’t take a hard look at the root causes behind your debt balances to begin with. You may have had an emergency, divorce or medical issue that caused your debt to grow. There could also be spending habits, ineffective credit use and a lack of calculated budgeting that also caused it. Without addressing these issues head-on, however, and without having a strategic plan to deal with them in the future, you won’t effectively realize any real, long-term debt relief.

The bottom line

The above list is not exhaustive, but it does provide a good framework for borrowers contending with high-rate debt balances to take action. While it may not have taken a long time to build your balances, even the most effective debt relief approach will take time, effort and patience. So, with inflation remaining stuck and interest rate cuts unpredictable, it makes sense to do the next best thing: take precise and calculated action on your own. By being aggressive now, you can finally start reducing your debt and rebuild a healthy financial lifestyle at the same time.