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CBS News
21 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.
Yahoo
2 days ago
- Business
- Yahoo
Jim Cramer Predicts We're Headed To 'Prices We're Not Used To' – Says You Should Invest At Least $50 a Month to Tackle Financial Uncertainty
Jim Cramer, one of the most prominent hosts in financial television, recently celebrated the 20th anniversary of his CNBC show "Mad Money." In an interview with NBC's "Today" last month, Cramer reflected on two decades of his show and explained why he believes it resonated with the general public. He was asked to give advice on tackling financial uncertainty as Americans brace for the impact of tariffs. Cramer said when he started his show, it was not a "great time" for the economy, but investors who stayed in the market "did great." Cramer urged people to keep investing despite broader market headwinds. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — How do billionaires pay less in income tax than you?. "Same thing is going to go on here," Cramer said. "Stay the course. And if it gets too crazy, just continue to stay the course. Put more money in. $50 a month. Okay? $50 a month is a great amount." When asked where investors should put their money, Cramer said people should start with an S&P fund. "Never, ever lose faith in the country. Remember the country and the market — they're very separate from what happens in Washington," he added. Trending: Maximize saving for your retirement and cut down on taxes: . Cramer expects a lot of "bad stuff" in the weeks ahead due to inflation. However, he believes that it would not "last forever." "It will be tough on the regular person because you're not going to be making enough to cover what is basically a tax," Cramer said. "And I'm not saying Republican or Democrat. I'm just telling the truth." Earlier this month, the Federal Reserve kept its benchmark lending rate unchanged, but warned that inflation could increase due to the impact of tariffs. "If the large increases in tariffs that have been announced are sustained, they're likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment," Fed Chair Jerome Powell said at a news conference at the Fed President Raphael Bostic said in a recent interview with CNBC that the economy and policies are in a lot of flux and pointed to inflation risks. "I worry a lot about the inflation side, and mainly because we're seeing expectations move in a troublesome way," Bostic said. Asked whether he believes we are headed for a recession, Cramer said "absolutely not," adding that the US is poised to see strong jobs growth. "But we'll be headed for prices that we're not used to seeing," he said. Read Next: Can you guess how many retire with a $5,000,000 nest egg? .Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Jim Cramer Predicts We're Headed To 'Prices We're Not Used To' – Says You Should Invest At Least $50 a Month to Tackle Financial Uncertainty originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
CNA
3 days ago
- Business
- CNA
Commentary: Don't be fooled by GenAI financial advisers
NEW YORK: The wealth management industry is prepared to court its newest potential clients: Gen Z. Instead of trotting out older professionals with decades of experience, companies are utilising generative AI to develop digital assistants. These new 'experts' even come with the ability to use slang to appear relatable and relevant to their target demographic. Embracing the newest technology is yet another cultural shift in the financial services landscape that disrupts some of the norms in the industry. We've seen it with the development of robo-advisers and the rise of ' finfluencers '. Cue the traditionalists turning their noses up at how far the financial advice field has strayed from its origins. After all, future iterations of GenAI really could accelerate the long-prophesied doomsday for flesh-and-blood financial planners. IMPROVING SOFT SKILLS But now isn't the time for humans to declare defeat. Until advanced versions of the technology arrive, people should be doubling down on the one significant advantage they have against their digital counterparts: soft skills. Providing investing advice is only one facet of the job. The role is part therapist, accountability coach and teacher. Real people can push back against panicked requests to sell in a turbulent market instead of simply executing an order. A person understands how and when to ask more questions to determine the reason behind a request for conservative investments such as bonds, even at a young age when it's detrimental to be overly cautious. The problem for many young adults is that accessing this more holistic approach, which goes beyond stats and data, is costly. Financial advisers usually get paid in one of two ways: assets under management (AUM) – a percentage of a customer's investments each year – or a flat-rate fee. The latter varies based on the level of service. A comprehensive financial plan can cost thousands of dollars. AUM ranges from 0.25 per cent to 1.5 per cent, with some advisers reducing the cost as the size of a portfolio grows. LOWER BARRIERS TO ENTRY The greater barrier to entry is the possible minimum investable assets requirement, which often hovers between US$500,000 and US$1 million. Fifteen years ago, these factors prohibited access for millennials. This reality paved the way for cost-effective alternatives in the form of robo-advisers, such as Betterment and Wealthfront, with significantly lower AUM and no asset minimums. The companies sent shockwaves through the industry as many wondered if machines would finally usurp man. As years passed, it became obvious the two could have a symbiotic relationship. In fact, it turned out millennials ultimately did crave some soft skills, which led to platforms launching versions that gave customers access to humans. Instead of cratering the industry, the robo-advisers forced their living counterparts to compete in different ways. Some diversified their services, including offering virtual counsel, and others targeted less-affluent clientele. While it's easy for the regular consumer to conflate a robo-adviser with GenAI, the two are not the same. The latter is built on language-learning models instead of the mathematical-centric AI models and machine-learning algorithms that provide the underpinnings for companies like Betterment and Wealthfront. Gen Z investors may be more attracted to GenAI because it can simulate how people speak and even look. Plus, the cohort is more primed to be early adopters of the tool. They've grown used to receiving free, one-size-fits-all money guidance online. FALLIBLE TECHNOLOGY A stunning 77 per cent of teens and 20-somethings use online platforms and social media to answer their money questions, according to a 2025 Credit Karma survey. But they should remember that the technology's modern iteration is new and, like humans, fallible, which results in inaccurate or misleading information known as 'hallucinations.' Even with all these issues to resolve, companies are bullish on GenAI's ability to spit out 24/7 guidance and woo new clients. Arta Finance, a wealth management startup, is at the forefront of providing an AI financial adviser with Arta AI. The 'AI agents', as the company refers to its investment planner, product specialist, and research analyst offerings, can respond to queries by voice or text (and do so in the aforementioned generationally-appropriate slang). Arta is only available to accredited investors and offers access to human professionals, but the company plans to make Arta AI available to other financial services companies. A move that could give all kinds of retail investors access to its product. It's likely that plenty of platforms won't wait to license the service and instead will develop their own. A HUGE PITFALL Robinhood Markets plans to launch Robinhood Cortex, an AI-powered digital research assistant, this fall. The app offers a variety of investing options, including Robinhood Strategies, the company's robo-adviser. Unlike Arta Finance's offering of real-life advisers alongside its AI agents, Robinhood customers can currently only access a support team, which is mostly available to handle administrative questions. And that's a huge pitfall. Companies that don't prioritise establishing relationships with real professionals can cause retail investors to panic in turbulent times, especially novice ones who are able to access advanced opportunities, such as trading options. Granting inexperienced customers access to higher-level investing products without proper support can be financially, mentally and emotionally ruinous. Robinhood should know. In 2020, it paid the largest Financial Industry Regulatory Authority fine in history – US$70 million – for its technical outages, lack of due diligence before approving customers to trade options and sending of misleading information.
Yahoo
3 days ago
- Business
- Yahoo
Philadelphia woman in ‘tricky situation' after her mom asked for $3,000 — from the grandkids' savings account
Andrea, a wife and mother from Philadelphia, recently found herself in a high-stakes financial and emotional crossroads, caught between family loyalty, cultural expectations and a commitment to financial stability. 'I am in a really tricky situation,' Andrea shared during a recent call to The Ramsey Show. 'My brother and my mom are asking me to [lend] my brother $3,000.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) The purpose of the request was to cover her brother's business expenses. But Andrea and her husband have been saving that money to try to pay down debt. Here's what Ramsey had to say to Andrea. Ramsey Show Co-host Jade Warshaw posed an alternative suggestion. 'Why doesn't she lend him the $3,000?' she asked the caller, referring to Andrea's mother. 'Because she doesn't have the money,' Andrea replied. Dave Ramsey's response? 'Neither do you. You're broke and in debt.' But the plot thickened when Andrea revealed her mother's solution: tapping into Andrea's children's savings. 'I talk to my mom sometimes, telling her we save money for the kids, right? So her idea was to take the money from the kid's savings account to give my brother the $3,000,' she said. 'She has a lot of ideas about what you should do with your money,' Warshaw noted, 'Do you feel like you have to listen to what she's asking you to do?' Andrea hesitated, noting her brother once helped her early in her marriage, but that support came in the form of small items for her kids. 'That was not $3,000. That was a hundred dollars,' Ramsey said. 'Because I got to tell you in my world, when grandma asked for the kids' money for the brother, that means grandma needs to be smacked.' Originally from Ecuador, Andrea noted that extended family support is a common expectation in her community. Ramsey responded, 'In your culture, it is more normal to share with extended family … but this is your household. And your household is separate.' Cultural norms can shape financial habits, but limits are limits. Even with that understanding, Andrea expressed hesitation. 'My brother is more … resentful. If you tell him something that he doesn't like … then he's not going to talk to me,' she told the hosts. She feared that saying no would lead to tension or silence. 'There's no consequence here other than adults choosing how they're going to behave next. If your brother gives you the cold shoulder, that's not something you can control,' Warshaw said. 'All you can control is your response.' Andrea admitted that her mom would likely try to persuade her. Ramsey's response was simply, 'No is a complete sentence.' He suggested that Andrea tell her mother, 'Mom, I love you. I love him. That's not in question. But this money is set aside for my children. And the answer is going to be no, no matter how long we talk.' Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Financial experts emphasize the importance of setting clear boundaries in similar scenarios. According to a survey by Ipsos for BMO, 34% of partnered Americans report that money is a source of conflict in their relationships. Money issues with extended family can add to that stress. Here are some tips to navigate tricky situations like these: Start with an open conversation. Schedule time to sit down and talk about your concerns without placing blame. For instance, Andrea could say, "I understand your situation, but I need to prioritize my children's future savings." Establish firm boundaries. Don't be afraid to set your limits and let your family know that they need to respect them. Offer different types of support. Look for other ways to help, such as recommending resources or financial counseling services that may be useful. Finally, if the conversation doesn't seem to be progressing, consider involving a neutral third party, such as a financial advisor, to help facilitate. It can be tough, but by approaching the situation with firm boundaries, it's possible to maintain family relationships while also protecting your financial well-being. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
3 days ago
- Business
- Yahoo
Suze Orman's 5 Best Tips for Saving Money Even When Living Paycheck to Paycheck
With around half Americans reportedly living paycheck to paycheck, saving money might seem impossible. But financial guru Suze Orman has some surprisingly doable advice for squeezing savings out of even the tightest budget. Read Next: Learn More: Here are Orman's five best tips for how to save even when living paycheck to paycheck. 'You have to strike the word 'can't' out of your vocabulary,' Orman told CNBC. Instead of saying you can't save, start looking for places where money is slipping through the cracks. That $10 lunch out? It could be going into your retirement account instead. Try This: Think you're too broke to save? Orman said to look closer at your spending. According to she challenges everyone to cut utility bills by 10% (hello, lower electric bill!) and examine those credit card statements. There's usually some 'hidden money' in there you could redirect to savings. Here's a trick that actually works: Have money whisked away before you can spend it. 'You will find that you do not miss it,' Orman explained to CNBC. Even $50 a month adds up — especially if you put it in a Roth IRA, where you can access your contributions if you really need them. Every time you're about to buy something, Orman suggests asking one simple question: 'Is this a want or is this a need?' Medicine and groceries? Needs. That new phone case? Probably a want. Being ruthless about this distinction can free up surprising amounts of cash. While it might seem impossible, Orman insists everyone needs an emergency fund covering eight to 12 months of expenses. Start small — even $20 a week adds up. 'The most important thing is that you have got to live a life below your means, but within your needs,' Orman said. You don't need to make six figures to start saving — you just need to be strategic about it. Start with what you can, automate it and slowly increase your savings as you find more 'hidden money' in your budget. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on Suze Orman's 5 Best Tips for Saving Money Even When Living Paycheck to Paycheck
