Latest news with #creditcarddebt
CBS News
13 hours ago
- Business
- CBS News
How to cut credit card debt starting this June
There are multiple ways in which borrowers can start cutting their credit card debt this June. Getty Images The start of a new month can offer borrowers a fresh start and, this June in particular, it may be a smart time to revisit your credit card debt situation. Currently, the average credit card debt balance hovers around $8,000. And throughout the United States, the cumulative credit card debt balance sits over $1 trillion currently, a May report showed. While that's actually down slightly from the final quarter of 2024, balances overall are still up around 6% from the same time period last year. Combine this reality with an elevated interest rate climate, the prospect of lower credit card interest rates dim and lingering inflation issues and it becomes clear that the time is right to tackle your credit card debt before it grows further out of control. But how do you do that and where do you even begin? Fortunately, there are multiple debt relief options available that you could qualify for, some of which can you help you start on the path toward reducing your credit card debt as soon as this June. Below, we'll break down four options to explore right now. Start by reviewing your credit card debt forgiveness options online today. How to cut credit card debt starting this June Want to start cutting your credit card debt this month? Here are four viable options to consider: Balance transfer credit cards Balance transfer credit cards operate precisely as the name suggests. Borrowers can transfer their existing credit card balance from one account to another, with the balance transfer card typically coming with a low or 0% introductory interest rate. This allows borrowers to save on interest that they'd otherwise have been stuck paying with the initial card, and it will allow them to make a greater dent toward paying their debt off entirely, as their new payments will apply more toward the principal balance. That said, balance transfer rate offers are limited and will typically only last for a small amount of time, so if you choose this alternative, be prepared to be aggressive in the limited time you have. Explore your top credit card debt relief options here. Debt consolidation loans The average personal loan interest rate is just under 13% now, while the average credit card interest rate is just under 23%. So, if you can consolidate your credit card debt with a personal loan, it makes obvious financial sense to do so. And the great feature about debt consolidation loans is the flexibility (besides the low rate). These sorts of personal loans can be secured independently by borrowers or with the help of a debt relief company, giving you two viable ways to start chipping away at your debt. That said, you'll generally need to have good credit to qualify for a low debt consolidation rate but, if you do, this can be a helpful alternative to consider. Debt management programs Have a credit card debt situation that will only resolve itself with a hands-on approach from an expert? Then, a debt management program can be the solution for you. These programs start with a financial assessment of your situation and proceed to negotiations with credit card companies to (hopefully) reduce your credit card rates and they'll often move on to a payment plan completion and, with that, a structured debt payoff timeline. Programs differ from company to company but they can be viable for those who want to start cutting their debt load this month but don't know where or how to start the process. Credit card debt forgiveness Credit card debt forgiveness may not apply to everyone with a debt balance but it could be the right solution for many who have credit card debt in the amount of $5,000 or higher. If you owe that much to your credit card companies, are already delayed in payments and have one or more financial hardships that you can document underlying your inability to make payments, this could be the debt relief solution you need. That noted, credit card debt forgiveness is not an overnight fix. You can start the process (if you qualify) this June, but it typically takes two to four years to complete. But that end result could mean forgiveness of up to 50% of your credit card debt, so the timeline may be worth it, depending on the severity of your debt amount. The bottom line With multiple credit card debt relief strategies and programs available, and with the urgent need to regain your financial freedom particularly high this June, now could be the time to take action. By reviewing these four potential options and evaluating your unique credit card debt situation, you can better determine which makes the most sense for you now and, more importantly, start the delayed work of cutting your credit card debt permanently.
Forbes
2 days ago
- Business
- Forbes
Tariffs And Inflation Affect Summer Travel Plans, New Survey Says
Nearly half of Americans say President Trump's tariffs will affect their summer travel plans, a new survey says. (Photo by) Getty Images As the summer travel season looms, nearly half of Americans say President Trump's tariffs are disrupting their travel plans, according to a new consumer survey. The survey done by personal-finance website WalletHub reveals that 45% of Americans say tariffs are affecting their travel plans, while 63% say inflation is affecting such plans. Survey respondents could select more than one reason. The survey also finds that 70% of Americans are concerned that a weakening dollar will affect the ability to travel internationally. 'Consumers have concerns about the current economic landscape, including its impact on summer travel heading into vacation season,' says John Kiernan, WalletHub's editor. It's understandable that nearly half the people surveyed say tariffs are affecting travel plans, considering the tariffs are 'coming on the heels of years of inflation,' he says. The survey also reveals that nearly 2 of every 3 Americans plan to spend less money this summer than last summer. More than 40% of Americans plan to use credit card rewards to pay for a vacation this summer. Other survey findings: *Americans are still paying off past travel expenses. Nearly one of every five people still has credit card debt from a previous vacation. *Debt clouds Americans' summer fun. During vacation, 55% of people think about credit card bills that will arrive afterward. *Debt is preferable to missing a vacation. One of every five Americans say they would skip a credit card payment before skipping a vacation. 'Travel has become non-negotiable for many people—even when it means taking on debt or falling behind on payments,' Kiernan says. 'If you're determined to travel, I recommend exploring every possible way to save–from following a strict budget to getting a travel credit card with a big sign-up bonus. You'll enjoy your experience a lot more if you don't have to pay interest on your travel expenses for months or years.'
Yahoo
3 days ago
- Business
- Yahoo
Robert Kiyosaki Says a ‘Greater Depression' Is Coming — Do Other Experts Agree?
'In 2025 credit card debt is at all time highs. US debt is at all time highs. Unemployment is rising. 401k's are losing. Pensions are being stolen. USA may be heading for a GREATER DEPRESSION [sic],' Robert Kiyosaki wrote in a tweet on X. He went on to urge investors to buy gold, silver and Bitcoin. 'I strongly believe, by 2035, that one Bitcoin will be over $1 million dollars. Gold will be $30k [sic] and silver $3,000 a coin. It will be the easiest money you ever made,' he wrote. Discover Next: Try This: Kiyosaki is no stranger to doom-and-gloom catastrophizing. Back in 2002, he wrote an entire book about his bearish predictions. The title says it all: 'Rich Dad Prophecy: Why the Biggest Stock Market Crash in History Is Still Coming…and How You Can Prepare Yourself and Profit from It!' So based on Kiyosaki's prediction of a 'Greater Depression,' which parts do other financial experts agree with — and which do they disagree with? Rising debt in the U.S. should raise more alarm bells than it has. The Federal Reserve reported that household debt reached an all-time high of $18.20 trillion in the first quarter of 2025. 'Consumer, corporate and government debt is out of control,' said Rod Skyles, writer for The Unconventional Economist. 'The forces driving interest rates higher seem to be building at a rapid rate, creating at least the environment for a death spiral of debt.' Read Next: Surging deficit spending at all levels of government have laid the foundation for a potential debt crisis. 'The key driver to all this is U.S. government deficit spending, which leads to a much higher overall U.S. debt,' Skyles added. 'We are currently in the fourth year of the worst Treasury market in history.' In the May issue of the Wolters Kluwer Blue Chip Economic Indicator survey, economists forecast a 72% probability of U.S. inflation increasing 'meaningfully' again over the next six months. The survey of economists also averaged a 47% probability that a U.S. recession will occur over the next 12 months. Economists do see a real risk of stagflation. The Blue Chip Economic Indicator survey uses a 'misery index' as a gauge of stagflation, representing the sum of the inflation rate and the employment rate. Economists see it climbing to a peak of 8.1% in the third quarter of 2025 before gradually easing to 6.9% in Q4 of 2026. 'These results are high relative to the years before the pandemic, but still far below readings in the 1970s and 1980s. The index was above 12% for much of that period and reached 19.9% in 1975 and 22.0% in 1980,' explained Frank Ready of Wolters Kluwer. Michelle Green, chief economist at Board, said she projects slower growth but not a deep depression. 'We've revised our real GDP forecast from 2.4% to 1.3% for 2025, with moderately rising unemployment and persistent inflationary pressures. This combination creates what economists would typically classify as mild to moderate stagflation rather than a depression-level economic collapse,' she said. As the department chair of finance and economics at Adelphi University, Dr. Mariano Torras said Kiyosaki diminishes his message with his 'get rich quick' talk. 'While he is likely correct that there are stormy seas ahead and I agree with him that we should put our money in tangible investments like property, metals and commodities, I do not expect to get 'rich' doing so.' Instead, Dr. Torras sees these as more defensive assets to help preserve purchasing power. If a 'greater depression' actually does come along, everyone will feel pain — but some will feel less of it than others. More From GOBankingRates I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money These 10 Used Cars Will Last Longer Than an Average New Vehicle This article originally appeared on Robert Kiyosaki Says a 'Greater Depression' Is Coming — Do Other Experts Agree? Sign in to access your portfolio
CBS News
4 days ago
- Business
- CBS News
Credit card debt, interest rates and what borrowers should do right now
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Paying off your high-rate credit card debt should remain a priority, even in today's unique economic atmosphere. unknown/Getty Images The news released this May that credit card debt balances were declining appeared to be positive on the surface. Certainly, a decline in what borrowers owe is preferable to a spike. But upon closer examination, this seemingly good news wasn't exactly what it appeared to be. For starters, credit card balances in the United States in the first quarter of 2025 remained very high, at a total of $1.18 trillion. While that was down $29 billion from the previous quarter, it still represented a 6% rise from the same period in 2024. And with the average credit card debt hovering close to $8,000 currently, there's likely a lot of work left for borrowers to complete to regain their financial freedom. And that work shouldn't be put off any further, particularly in today's unique economic atmosphere. Fortunately, there are multiple debt relief options available that are worth exploring, some of which borrowers may want to get started with as soon as this June. Below, we'll detail why they should act quickly – and how they may want to do so. Start by checking your credit card debt relief eligibility requirements here. Credit card debt, interest rates and what borrowers should do right now Not sure if it's worth taking aggressive action to reduce your credit card debt? Here are three items to consider to help you determine your next steps: Your current credit card debt amount Sure, you may owe less than that $8,000 average amount … or you may owe more. Either way, if you can't pay off what you owe in its entirety, then it may make sense to pursue some form of debt relief. And that doesn't have to mean utilizing the services of a debt relief provider, as options like balance transfer credit cards and debt consolidation loans may be able to be secured on your own, and dramatically reduce your interest rates in the interim, providing a clearer path toward total debt payoff. Just don't sit idle, no matter which option you prefer, as credit card interest compounds daily, turning even a manageable debt load prohibitive. Explore your alternative debt relief solutions online now. The broader interest rate climate If your plan is to wait for the broader interest rate climate to cool and, for that cooling to significantly reduce your currently high credit card interest rates, then you may be waiting for a very long time. Right now, there's almost no chance of a fed rate cut for when the central bank meets again in June (the CME Group's FedWatch tool has a rate pause there listed at nearly a 100% certainty). Rate cuts could become more realistic in July, but even then, by just 25 basis points, which will have little to no impact on your credit card rates (which are influenced by multiple factors besides just the Fed). Being realistic about this interest rate climate, then, and its likelihood to change in a helpful way soon, can better help you move to the next step this June: finding the right debt relief option for your particular situation. Your debt relief alternatives Did you know that you could qualify to have 30% to 50% of your credit card debt forgiven? If you meet certain qualifications, this is certainly possible. But it's not the only way to get rid of your credit card debt with aforementioned items like balance transfer credit cards, debt consolidation loans possible too, along with credit counseling, debt management programs and more all playing critical roles for borrowers in need of a debt solution now. You won't know which is applicable to your unique situation, however, until you've taken the time to explore and research all of them. Consider doing so now, then, and make this June the first stop on your journey toward full financial freedom. The bottom line The economic climate credit card users find themselves in this June isn't exactly a favorable one. With credit card balances high, interest rates elevated and the prospect of relief for either dim, it makes sense to be proactive with an appropriate debt relief approach. By understanding the dynamics of today's economy and being realistic about these developments, borrowers can feel more comfortable exploring their debt relief options and, from there, choosing one (or multiple) that can help them reduce what they owe once and for all.
CBS News
4 days ago
- Business
- CBS News
Is credit card debt forgiveness the same as debt settlement?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. There are multiple credit card debt relief options that borrowers should consider exploring if they can't repay all that they owe. Getty Images The idea that borrowers may be able to have some of their credit card debt forgiven is naturally appealing. But in the economic climate of recent years, this possibility has become particularly powerful. Thanks to a combination of higher interest rates on borrowing products, a stubborn (if significantly cooled) inflation rate and hard-to-predict economic policies and changes, many Americans have turned to credit cards to make ends meet. But credit cards haven't been immune to market conditions, with rates here rising to a record 23% last fall (they've only come down slightly since). That's made the average credit card debt of approximately $8,000 particularly difficult to pay down and has resulted in many borrowers exploring their debt relief options. Credit card debt forgiveness, in which borrowers could see 30% to 50% of their balance forgiven, can be especially advantageous in this climate. To understand how it works and the qualifications, however, it's important to clarify a few items. One important one starts by defining what credit card debt forgiveness is (and what it isn't). Below, we'll complete that analysis and, importantly, help you determine if this is the right debt relief solution for your circumstances. Start by checking your credit card debt relief qualifications here. Is credit card debt forgiveness the same as debt settlement? Credit card debt forgiveness is also known as debt settlement, and they're often viewed the same way by servicers. Technically, credit card debt forgiveness can occur in multiple ways, either through a negotiated debt settlement process, a specific bankruptcy type, or sometimes through a debt management program. You won't be able to have your credit card debt forgiven, however, without first having a debt settlement agreement in place, even though that agreement could be reached via multiple avenues. So, yes, credit card debt forgiveness is often considered the same as debt settlement, although it helps to clarify the definition of each service with the debt relief company in question, as their interpretation of the service could be different than the competitors. Learn more about having your credit card debt forgiven now. How to qualify for credit card debt forgiveness So now that you understand the nuance in the definition between credit card debt forgiveness and debt settlement, you may be wondering about your qualifications. How do you get 30% to 50% of your credit card debt forgiven? Here are the three main qualifications: A credit card debt balance minimum of between $5,000 and $10,000. Being behind on payments (typically the further delinquent A financial hardship These are the main qualifications; however, many debt relief companies may require you to meet more criteria to move forward. So don't automatically assume you'll qualify. Instead, shop around for debt relief companies and research each one's forgiveness criteria to determine which is easiest to qualify for. Compare debt relief companies here to learn more. The bottom line Debt settlement and credit card debt forgiveness are often used interchangeably when discussing credit card debt relief. So don't get confused by their similarities. Instead, take the time to review all of your debt relief options (of which there are many) to better understand how they work, who qualifies and, perhaps most importantly, which one will be most appropriate for your debts. By doing this research now and by understanding the nuances of each approach, you can make the right choice and start the delayed work of regaining your financial freedom.
