Latest news with #credit card
Yahoo
4 days ago
- Business
- Yahoo
How to get the best currency exchange deal for your holiday money
There has been a lot of talk about exchange rates recently, especially given how the pound has risen against the dollar and fallen against the strengthening euro since the start of the year. When these things happen, it's tempting to wonder if we should try to time our holiday currency exchange to make the most of it. However, this isn't as straightforward as you might think. It's incredibly difficult to second-guess where the currency market is heading, so you still risk buying at a bad time. If you buy months in advance, you also face leaving money lying around at home, where it's a security risk and it's attracting no interest. You could buy in two tranches, so you hedge your bets and definitely don't exchange it all at the worst possible time, but you need to beware of exchange fees or delivery costs — which will soon eat into any gain. Find the best deal For most people, the most sensible approach is not to try to become a part-time currency trader, but to find the best possible deal at the right time for you. This is usually available from a credit or debit card without fees for overseas spending. You can't choose when the exchange is made with these cards — it will happen at the point you spend, but the better exchange rate may make it worth it anyway. Read more: How to build passive income A quick spot check found that exchanging somewhere highly competitive on the high street would cost you £500 for €570, whereas spending on a fee-free card would cost £495. You don't need to switch current accounts to get a new debit card, you can open a second account just for holiday spending, and transfer cash into it when you need it. Shop around The second most cost-effective approach is to shop around using an online currency comparison tool. You don't need to be within easy reach of a host of foreign exchange bureaux to shop around — you can get it delivered to a supermarket or shop nearby, or if you're ordering a reasonable chunk of money you should be able to get free delivery to your home. Don't buy your currency on a credit card though, because this is treated as a cash withdrawal, so there could be a fee and interest to pay on top. What to avoid By far the most expensive approach to getting cash is to leave it to the last minute and buy at the airport. The same spot check found €570 would set you back £507 — £12 more than a card. If you have no choice other than to do this, use the online service to order in advance — even if you're travelling that day. As long as you do it a few hours in advance, you should get a slightly better deal. Read more: How to make pension pots tax-efficient The other pitfall to watch for is spending on your usual credit card or debit card without checking the charges. You could end up paying around 3% of the transaction amount — plus a flat fee of up to £1.50. Finally, if you opt for a card of any kind, make sure you're paying in the local currency. If a retailer gives you the option of paying in pounds, you can politely decline. If you opt for pounds, you're relying on whatever exchange rate the shop or restaurant sets, which will include a commission for them, so you're much better paying in the local currency and leaving the exchange up to the more: How to start investing with an employee share scheme How your health can affect your pension How to save money on your council tax billError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBS News
17-07-2025
- Business
- CBS News
Can you consolidate debt while on Social Security?
It's no secret that living on a fixed income can make managing your debt feel like an uphill climb. For retirees or those receiving Social Security, even small monthly payments can strain already tight budgets. And when you add in sticky inflation, which is driving up costs for everything from groceries to healthcare, it's easy to see how credit card balances and other debts can quickly spiral out of control. If you're in this situation, you may be wondering if debt consolidation is a way to get some breathing room. After all, rolling multiple debts into one loan with one monthly payment sounds appealing, especially if it comes with a lower interest rate. But when Social Security is your primary or only income, the options for debt consolidation may look different than they would for someone still working full time. So, can you consolidate debt while on Social Security? And if so, is it the best route to take, or are there other strategies that might work better? Here's what you need to know before making your next move. Find out how you can start tackling your high-rate debt today. Yes, it's possible to consolidate your debt even if your income comes solely from Social Security. But there are some important nuances to understand, and qualifying for a traditional debt consolidation loan may be challenging in some cases. Your Social Security benefits count as income when applying for a debt consolidation loan or other financial products, so lenders will typically consider them as part of your application. However, because many retirees are on fixed or limited budgets, qualifying for a large enough loan, or one with favorable terms, can sometimes be difficult. Paying a much higher rate for a debt consolidation loan negates a lot of the benefits that come with this strategy, so it may not be worth consolidating if the rate is just a point or two lower than your credit cards. Lenders may also look closely at your debt-to-income ratio to ensure you can afford the consolidated payment. A higher debt-to-income ratio can make approval harder, even if you've been diligently making the minimum payments on your current debts. So, if your Social Security benefits are modest and your debt levels are high, it could be tough to qualify. That said, if your credit is strong and you own a home, a home equity loan or home equity line of credit (HELOC) might be a viable way to consolidate your debt. These borrowing options allow you to use the equity in your home to consolidate higher-rate debts like credit cards into one lower-rate monthly payment. But this approach comes with tradeoffs, and if you fall behind on payments, you could risk losing your home. For those without significant assets or excellent credit, credit counseling can offer an alternative in the form of a debt management plan. With a debt management plan, the credit counseling agency works directly with your creditors to lower interest rates and eliminate certain fees, making your debt more affordable and manageable. And, you send one monthly payment to the credit counseling agency, which essentially "consolidates" all of your debt into one obligation. Unlike a debt consolidation loan, though, there's no requirement that you'll need to meet based on your income or credit score. Explore your debt relief options and find the right fit now. If debt consolidation isn't feasible, don't lose hope. There are other ways to tackle debt while living on Social Security, including: Consolidating debt while on Social Security is possible, but it's not always a straightforward process. Whether it's through a debt consolidation loan, home equity or a debt management plan, the right approach ultimately depends on your income, credit and overall financial picture. If debt consolidation isn't an option, the good news is that there are still paths to relief, including debt settlement, hardship programs, and, in some cases, bankruptcy. Talking to a credit counselor or debt relief expert can help you weigh your choices and find the safest, most effective way to manage your debt on a fixed income.
CBS News
11-07-2025
- Business
- CBS News
4 debt relief options you can qualify for with a low income
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. You can still pursue debt relief with a limited income, but certain strategies may work better than others. Getty Images When you're living on a low income, even a small credit card balance or unexpected medical bill can feel like a financial emergency. Owing money when you can barely cover rent and groceries is incredibly stressful, and as the interest charges pile up and the late fees kick in, that debt can feel impossible to manage. But in today's high-rate, inflationary environment, this situation is not uncommon. Lots of people have fallen behind on their debt payments and are now looking for a way out. Unfortunately, the path forward isn't always obvious, especially when debt collectors are calling as the bills keep piling up. But the good news is that there are debt relief options that can help, some of which are designed specifically for people in tight financial situations. These programs and strategies can reduce, restructure or even eliminate a portion of what you owe, making it possible to regain control of your finances, all without needing a high income. If you want to take advantage of what these programs can offer, though, you'll need to know which options you might qualify for and how to access them. So, what are the debt relief strategies worth considering when your income is limited? Below, we'll detail four worth knowing now. Find out how to start the debt relief process online today. 4 debt relief options you can qualify for with a low income Here's a closer look at several unsecured debt relief options you may qualify for if money is already stretched thin. Credit counseling and debt management Best for: Those who are still current on bills or only slightly behind but struggling to keep up with high interest rates. Many credit counseling agencies provide free or low-cost services that can help you better navigate your debt. When you take advantage of this option, a certified credit counselor will review your financial situation and may help you create a personalized debt management plan that provides a structured route for getting out of debt. One of the main benefits of a debt management plan is that it allows the credit counseling agency to work with creditors on your behalf to secure reduced interest rates and waived fees. While that won't lower the total balance you owe, it can make the debt more manageable on a limited income. And, the nominal fees that are charged for these services may be easier to fit into your budget than the fees that come with other options. Compare your debt relief options and find the right solution now. Credit card debt forgiveness Best for: Those who have already fallen behind on payments and have access to some funds (or can save them up) to settle debts. Pursuing debt forgiveness involves working with a debt relief company (or on your own) to negotiate lower lump-sum settlements with your creditors. If successful, the remainder of what you owe is "forgiven," allowing you to get rid of your debt without paying the full balance owed. This option can reduce your balances by an average of 30% to 50% (provided that your creditors agree to settle). However, it's not without tradeoffs. You'll need to either have enough money on hand to offer lump-sum settlements or have enough in your budget to save up for them. And, the debt forgiveness process can hurt your credit score. Creditors aren't obligated to accept an offer, either, and you may face taxes on any forgiven debt. But if you can reduce your debt substantially, the tradeoffs may be worth it, especially if your income is limited. Credit card hardship programs Best for: Those experiencing short-term financial hardship but want to keep accounts current. Many credit card companies and lenders offer hardship programs for borrowers who are facing legitimate financial challenges. These programs can be beneficial when your income is limited because they can result in temporarily lower interest rates, waived late fees or paused payments. To explore this option, you'll need to contact your creditors directly and explain your situation. Not all lenders will agree to these arrangements, but it's often worth asking, especially if you're trying to avoid falling deeper into delinquency and can provide proof of the hardship you're facing. Chapter 7 or Chapter 13 bankruptcy Best for: Those with more debt than they can reasonably repay, especially if they're being sued or face aggressive collections. Bankruptcy can sound like a drastic approach, and, given the serious repercussions of filing, it can be. But for some people, filing for either Chapter 7 or Chapter 13 bankruptcy is also the most effective way to eliminate overwhelming debt. Both options come with credit impacts, but they also provide legal protections from collections, lawsuits and wage garnishment. Chapter 7 bankruptcy is designed for those with low income and minimal assets, and if you qualify, most unsecured debts, like credit card balances, medical bills and personal loans, can be discharged completely. Chapter 13 may be an option if you have a steady income and want to reorganize your debt into a three-to-five-year repayment plan. The bottom line If you're living on a low income and struggling to manage your unsecured debt, it's important to know that you're not stuck. From credit counseling and hardship programs to debt settlement and bankruptcy, there are proven ways to lighten your financial load. Each option differs, though, in terms of the relief it can provide and the potential downsides you could face, so take time to consider which one fits your situation. Don't wait too long to act, though. The sooner you get started, the faster you can start building a path toward financial stability.
