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CBS News
9 hours ago
- Business
- CBS News
Credit card debt relief dos and don'ts to know right now
With the right approach, credit card users can start erasing what they owe as early as this card debt balances may have declined in the first quarter of 2025, but they're still a major source of financial concern for millions of Americans. At a total of $1.18 trillion in the first quarter of 2025, balances declined from where they were at the end of 2024, but they're still up 6% from where they were a year earlier. And with an average credit card interest rate of over 21% now and compounding interest making it difficult to pay down even seemingly manageable balances, it's easy to see why this is such a hardship for many Americans in today's economy. Fortunately, there are multiple credit card debt relief options and programs available that are worth exploring right now. Whether you're considering credit card debt forgiveness, a debt management program, or something else entirely, however, there are some important steps to take during the process, especially in today's economic landscape. And there are some potentially costly missteps worth avoiding, as well. To improve your chances of success, it helps to know some important credit card debt relief dos and don'ts in today's economy. Below, we'll detail four of them. Check your credit card debt forgiveness eligibility here. Credit card debt relief dos and don'ts to know right now Here are four important dos and don'ts borrowers should know about credit card debt relief right now: Do: Be proactive in reducing your debt No matter which credit card debt relief option you feel is most applicable to you, it's important to be proactive. With credit card interest rates just under a record high and interest compounding daily for many borrowers, being aggressive is critical now and could be the difference between regaining your financial freedom and being mired in high-rate debt for the long term. Your current credit card debt balance was built up over time and it will likely take even longer to cut it back down, so start the process sooner rather than later. Explore your credit card debt relief options online today. Don't: Wait for rate cuts to impact what you owe Waiting for interest rates to be cut by the Federal Reserve, to then reduce your already high credit card interest rates, isn't beneficial now. For starters, no one knows for sure when the central bank will cut rates (possibly in July, but that could change). Additionally, that cut is likely to be by just 25 basis points, which will have a negligible impact on your credit card rates (if at all). And, in the interim, your debt will just compound each day that it's not dealt with. So don't wait for a one-size-fits-all solution courtesy of Fed rate cuts, and instead look to be aggressive in cutting down what you owe now. Do: Understand the impact of debt relief solutions All debt relief solutions aren't created equally. Some will require more work than others. And, some will have a bigger impact on your credit score than others, especially those in which you'll stop making payments to your credit card company and then shift those payments to a debt relief service that will make them for you. The final result will still be the same – freedom from credit card debt and improved credit – but the methods of getting there will vary. So take the time to understand the impact (or low impact), as each potential solution has to better determine which applies to your current situation. Don't: Assume automatic eligibility Qualifying for credit card debt forgiveness isn't the same thing as qualifying for a debt management program and it's not the same as having the credentials for credit card debt consolidation, even if all three are similar. Each option comes with different criteria, some of which may be more flexible and appropriate for your situation than others. So don't just assume automatic eligibility. Instead, research what will be needed for each. This will not only allow you to better align with the right solution for your needs but it will also allow you to focus on gathering documentation that you'll inevitably be asked for, speeding up the process as a result. The bottom line For many borrowers, this June is a smart time to start the credit card debt relief process. With rates here near a record high, the reality of compounding interest making it difficult to pay down what you've borrowed and the likelihood of Fed rate cuts small (and minimally impactful on what you already owe), it makes sense to take action now. With a strategic approach incorporating the four above dos and don'ts, you can start cutting your balances and, more importantly, regain your financial health once again.
CBS News
29-05-2025
- Business
- CBS News
CBS News poll: Economy views better than winter, but Americans feel concern more than secure about finances
Summer begins with Americans' economy ratings continuing to get a bit brighter than they were this winter — though still not good — with their outlook more mixed. But feelings of financial concern and stress are more prevalent than feelings of being secure. With a big majority still saying their incomes don't keep pace with inflation, prices and finances of course play a big role in how Americans decide what their summer plans will be. And that, too, helps define two different outlooks heading into the season. Slightly more Americans say they'll take a vacation this summer than report taking one in 2024. Most likely to take a vacation are the just-over half who say they're at least doing OK financially and can keep up with expenses. (For the higher income earners among them especially, summer will also involve travel.) But for those who say their finances are not good, it continues to be largely because of prices and incomes not keeping up with inflation. They're largely forgoing any vacation or travel. In all, feelings about finances span a range and most report feeling things from stress and concern to security and optimism at least once in a while. But Americans describe feeling concern or stress even more often these days, rather than feeling secure or content. That's especially the case among those whose personal financial situation isn't good. Ratings of the economy remain net-negative overall — this has been the case for years — but lately they have been ticking up off the dips they saw in late winter, February and March. Outlook and direction remains mixed, and with more negativity than positivity. But relatively fewer today are planning as if the country is headed for outright recession, as said so last month; opinion has shifted toward expectations of a slowdown, but not recession. In a different study consumer confidence was also reported to have rebounded lately. Those in comparably lower income levels report feeling stress about finances more often. Stress and concern go up with feeling less secure in a job (for those employed.) Concern about monthly ability to pay for food and groceries is strongly associated with more frequent feelings of stress. Conversely, feelings of being secure or optimistic financially are linked to confidence in being able to save, buy extras and pay for the basics. People for whom the stock market matters to their finances report less frequent feelings of stress. The market has had volatility over recent months, but those invested also have higher incomes, and report less concern about paying for day to day items to begin with. Summer plans As summer begins, one way Americans traditionally try to alleviate stress, of course, is a vacation or getaway. But access to that, too, splits on financial lines. For the just over half of Americans who say their financial situation is good, most plan to take a vacation of some form this summer, and most of those will also involve travel. For the bulk of people who do travel, summer means a road trip. It's far and away the main way they'll travel. (Though on balance, people who say their financial situation is bad say they'll take fewer car trips than last summer.) Peoples' assessment of the direction of gas prices is mixed and not very different than it was in March. Americans are more likely to expect their summer to be exciting rather than boring. And yet, for all the attention it gets, summer doesn't rate as Americans' favorite season. That's fall. This CBS News/YouGov survey was conducted with a nationally representative sample of 2,216 U.S. adults interviewed between May 26-29, 2025. The sample was weighted to be representative of adults nationwide according to gender, age, race, and education, based on the U.S. Census American Community Survey and Current Population Survey, as well as 2024 presidential vote. The margin of error is ±2.6 points. Toplines
