Inflation, interest rates and credit card debt forgiveness: Here's what borrowers should consider now

There are ways to get out of credit card debt worth exploring now, even in today's unpredictable economy. Andriy Onufriyenko/Getty Images

News on Thursday that the inflation rate rose in August may not have been surprising, but it was still largely unwelcome for millions of American borrowers.

A higher inflation rate in recent years caused interest rates to surge , rising on everything from mortgage loans to credit cards . And though some rate cuts offered relief last year, the federal funds rate has remained on pause throughout 2025, maintaining an expensive status quo. Now, however, with inflation almost a full percentage point higher than the Federal Reserve's target 2% goal and questions over the potency over a presumed rate cut to come when the central bank meets n