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There are multiple ways to . Whether it's via a secured independently, a debt consolidation program with a debt relief company, or a , card users have various options to explore. And in today's unique economic climate, in which remains a concern and elevated remain frozen on a variety of borrowing products, it makes sense to explore these options sooner rather than later. Delaying could damage your financial health and cause you to pay more in interest than your initial debt was worth.

While debt consolidation can be favorable for borrowers in a variety of economic landscapes, it can be particularly advantageous now, at the start of June 2025. But it won't be an overnight fix, either. So it's important to be proactive in your approach. Below, we'll detail why it could be smart to consolidate your credit card debt this June.

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Here are three timely reasons why consolidating your credit card debt could make sense this June:

The is around now, only slightly below a recent record high of 23%. And the unfortunate reality is that rates here are likely to remain in this range for the foreseeable future, including June. The likelihood of a rate cut from the Federal Reserve at the bank's June meeting is just 2.2%, according to the tool. And while credit card rates are driven by more than just Fed policy, a pause there will essentially ensure that rates on credit cards remain high. Borrowers should remember that credit card rates spiked to a new record high last November, directly in the middle of the Fed's latest interest rate cut campaign. So, waiting for more cuts and, thus, lower credit card rates this June won't be cost-effective. In this climate, consolidating this debt could be more advantageous.

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At the same time that credit card rates have remained stubbornly high, rates on home equity borrowing products like and have declined, making either a smart way to consolidate your credit card debt this June. , in particular, are down around two full percentage points from the double digits they were at in September 2024. And thanks to a that changes each month, rates here could decline even further for borrowers, making this an increasingly affordable way to consolidate your debt. While debt consolidation loans can offer a similar financial benefit, rates there are typically fixed, meaning borrowers will have to refinance their loans if rates decline to a substantial degree later this year.

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Did you know that your not monthly, but daily? Sure, this occurs after carrying a balance past the grace period (21 to 25 days, approximately). But once that date passes, credit card companies then divide your annual percentage rate (APR) by 365 days for the year, then that's tacked on to your existing balance. This can quickly cause even a seemingly manageable amount of debt to become impossible to pay down at today's average rates. , with a rate of around 8%, or a debt consolidation personal loan, with a rate around 12%, can not only save you interest costs, but it will allow you to make larger payments toward your principal versus being stuck in a seemingly never-ending interest compounding cycle.

The path to regaining your financial independence can start this June via debt consolidation. With credit card interest rates unlikely to decline, home equity borrowing products as viable, cost-effective consolidation alternatives and the reality of compounding interest for every day that you delay taking action, this June could be a smart time to consolidate your credit card debt. Consider speaking with a financial advisor or debt relief servicer, then, who can answer your questions and help you build a personalized, debt consolidation plan that fits your needs and budget.