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CBS News
11 hours ago
- Business
- CBS News
How to consolidate $50,000 (or more) in credit card debt without hurting your credit
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Consolidating $50,000 in credit card debt can be tricky, especially if you want to keep your credit score intact. Getty Images If you're buried under $50,000 or more in credit card debt, you're likely feeling some serious financial strain. For starters, the minimum payments on that high of a balance will barely make a dent and the compounding interest charges are relentless. Plus, juggling multiple balances each month can be downright overwhelming. And now, with credit card APRs hovering near record highs — averaging about 22% currently — it's easy to see how your credit card balances can balloon even faster than you can pay them down. You aren't the only one facing this type of issue, either. The total amount of credit card debt nationwide recently surged to $1.18 trillion, according to data from the Federal Reserve Bank of New York. And while inflation has cooled significantly compared to recent highs, the costs of everyday goods are still high, forcing more people to lean on plastic to cover basic expenses. For those dealing with credit card balances of five figures or more, debt consolidation can offer a much-needed reset by simplifying the repayment process and lowering your interest costs. But here's the tricky part: When you owe this much, the wrong move could do more harm than good, especially when it comes to your credit. So if you're thinking about consolidating $50,000 (or more) in credit card debt, it helps to understand the ways you can do it without wrecking your credit score. Find out how to start tackling your high-rate debt now. How to consolidate $50,000 (or more) in credit card debt without hurting your credit Depending on your credit profile and financial situation, the following options can help you get out from under that mountain of debt without damaging your credit health: Take out a personal debt consolidation loan A personal loan is one of the most straightforward ways to consolidate high-rate credit card debt, especially if you have strong credit and a solid income. These unsecured loans let you pay off all your cards at once and replace them with a single fixed monthly payment. How it works: You apply for a lump-sum personal loan, use the funds to pay off your credit card balances, and then make one consistent monthly payment towards the loan for a set period. The big benefit is that interest rates on personal loans average about 12% currently, so this move could help you save a significant amount on the interest charges. You apply for a lump-sum personal loan, use the funds to pay off your credit card balances, and then make one consistent monthly payment towards the loan for a set period. The big benefit is that interest rates on personal loans average about 12% currently, so this move could help you save a significant amount on the interest charges. Why it helps your credit: Once your credit cards are paid off, your credit utilization Once your credit cards are paid off, What to consider: Many lenders cap personal loans at $50,000, so if your total credit card debt is higher, you might need to combine this option with others or look for lenders who offer higher limits. You'll also want to make sure the loan terms don't come with steep origination fees or early repayment penalties. Learn more about your debt consolidation options today. Use a home equity loan or HELOC If you own a home and have built up equity, you may be able to borrow against it to pay off your credit cards. Home equity loans and home equity lines of credit (HELOCs) often come with significantly lower interest rates than credit cards or unsecured loans because they're secured by your property. How it works: With a home equity loan, you get a lump sum and pay it back in fixed installments over time, which is ideal if you need to consolidate a specific amount. A HELOC, on the other hand, works more like a credit card: You borrow as needed up to a certain limit and only pay interest on what you use. With a home equity loan, you get a lump sum and pay it back in fixed installments over time, which is ideal if you need to consolidate a specific amount. A HELOC, on the other hand, works more like a credit card: You borrow as needed up to a certain limit and only pay interest on what you use. Why it helps your credit: Like personal loans, using home equity to pay off credit cards can dramatically lower your credit utilization ratio. And because these loans don't count as revolving debt, they can help your credit profile appear more balanced and stable. Like personal loans, using home equity to pay off credit cards can dramatically lower your credit utilization ratio. And because these loans don't count as revolving debt, they can help your credit profile appear more balanced and stable. What to consider: This option only works if you have enough equity in your home, and you'll need a good credit score to qualify for favorable rates Work with a credit counseling agency For those with less-than-perfect credit or limited borrowing options, a credit counseling agency can be a helpful lifeline. These agencies offer debt management plans that bundle your unsecured debts into one monthly payment and often come with reduced interest rates negotiated on your behalf. How it works: After reviewing your financial situation, a certified counselor sets up a debt management plan, usually with lower interest rates and waived fees. You send one monthly payment to the agency, and they distribute it to your creditors. After reviewing your financial situation, a certified counselor sets up a debt management plan, usually with lower interest rates and waived fees. You send one monthly payment to the agency, and they distribute it to your creditors. Why it helps your credit: Unlike debt settlement, these plans don't require you to stop paying your creditors. That means your accounts remain in good standing (or return to good standing over time), helping you avoid the major score drops that come from charge-offs or collections. Unlike debt settlement, these plans don't require you to stop paying your creditors. That means your accounts remain in good standing (or return to good standing over time), helping you avoid the major score drops that come from charge-offs or collections. What to consider: Some creditors may freeze your accounts while you're on the plan, which could slightly reduce your available credit. But overall, your credit score is likely to improve as you make consistent on-time payments. The bottom line Consolidating $50,000 or more in credit card debt is a serious move, but if done wisely, it can help you break free from financial stress without wrecking your credit. To do that, though, you'll need to choose a strategy that fits your credit profile, income and long-term goals. But whether you qualify for a personal loan, can leverage your home equity or need help from a credit counseling agency, there are paths forward. So, take the time to explore your options, and don't be afraid to ask questions. The right move today can lead to financial freedom tomorrow.
Yahoo
10-05-2025
- Business
- Yahoo
Has Trump secured $10 trillion in investments for U.S.? Not according to White House tallies
Statement: 'We have now close to $10 trillion' in investments. We're talking about essentially two months.' Since returning to the White House, President Donald Trump has touted corporate and foreign U.S. investment announcements as proof he is ushering in "the golden age of America." On Jan. 21, Trump said that before he'd finished the "first full business day" of his second term, the U.S. had "already secured nearly $3 trillion of new investments." On April 2, he said, "It looks like we're going to have about $6 trillion of investments." Six days later, Trump told National Republican Congressional Committee Dinner attendees that the investment total was "now revised up to about $7 (trillion)." During an April 30 News Nation town hall, Trump speculated that "it could be more than $8 trillion." On May 4, Trump told NBC's "Meet the Press" host Kristen Welker, "I think we probably have close to $9 trillion of investments coming into this country." On May 6, Trump told reporters, "I think the real number could be $9 (trillion) or $10 trillion." Finally, on May 8, Trump said, "We have now close to $10 trillion — think of that, $10 trillion" in investments. "We're talking about essentially two months." That's far beyond the figures the White House has released publicly. We tallied the White House's public lists of investments; they amount to $2.1 trillion in corporate investments, or at most $5.1 trillion when including promised investments from countries. Experts cautioned that the promised corporate investments are not guaranteed to materialize in full, or during Trump's presidency, and some of them would have occurred regardless of who was president. Trump isn't the first to overstate new investments on his watch. President Joe Biden said in 2024 that his bipartisan CHIPS and Science Act had attracted $640 billion in private investments; economists told PolitiFact that Biden's numbers were based on what companies had announced, which is not the same as dollars already spent. Roman V. Yampolskiy, a University of Louisville professor and a specialist in artificial intelligence, which dominates the promised investments Trump cited, said: "Historically, large-scale investment announcements often overpromise and underdeliver. There is a performative element to them, especially in politically charged contexts. They function as political theater as much as economic commitment." Since Trump's inauguration, the White House has publicized investment announcements from three countries and roughly 60 companies on its website, including in a "non-comprehensive running list." Many of the highest-dollar corporate announcements were in March and April. Corporate announcements in the White House's lists total approximately $2.1 trillion worth of U.S. investment. The White House separately has cited commitments from the United Arab Emirates to invest $1.4 trillion over the next 10 years; from Japan to "boost" its investment in the U.S. to $1 trillion; and from Saudi Arabia to invest $600 billion in the U.S. during Trump's presidency. Combined with the corporate announcements, these would bring the total to about $5.1 trillion, $4.9 trillion short of Trump's figure. But the $5.1 trillion total has caveats. For example, the White House said, "Japan announced a $1 trillion investment in the U.S." But the article it linked to said that, in 2023, Japan's U.S. investment was $783.3 billion, and Japan would "boost" that to $1 trillion. That's an increase of $216.7 billion rather than a new $1 trillion investment. That would put the total value of newly pledged U.S. investment at about $4.3 trillion. The White House figures can't easily be used for apples-to-apples comparisons. Some of the investments are planned over Trump's four-year term, others over five years or a decade. In one case — ADQ and Energy Capital Partners' planned $25 billion investment — it isn't limited to U.S.-based projects. The White House declined to detail additional investments. A spokesperson pointed to federal Bureau of Economic Analysis data that show a 22% increase in business investment in the first quarter of 2025, calling it a historic increase. However, experts cautioned this increase was shaped by businesses stocking up on inventory before Trump's tariffs take effect and said the increase is unlikely to be sustained. Experts told PolitiFact that each of the five biggest investments on Trump's list warrants some caution, because they might not reach Trump's cited dollar amounts or weren't solely prompted by Trump's policies. "Many of these announcements, particularly those in the AI and semiconductor sectors, appear to be, at least in part, aspirational in nature," Yampolskiy said. "They serve a signaling function: to attract investor attention, shape policy discourse, and secure favorable regulatory or funding environments." The five largest company investments collectively account for 82% of the dollar value on the White House's corporate list: Stargate, NVIDIA, Apple, IBM and Taiwan Semiconductor Manufacturing Co. Stargate Stargate is an artificial intelligence collaboration among OpenAI, Oracle and Softbank, announced during a Jan. 21 White House event. The White House values the investment at $500 billion. The company's official announcement says $100 billion will be invested "immediately" and that it "intends to invest" a total of $500 billion over the next four years, a goal repeated by Softbank CEO Masayoshi Son at the White House event. "Whether that much will ultimately get spent remains to be seen," wrote John Higgins, chief economist at Capital Economics, an international consulting firm. Enrique Dans, who studies technology and policy at Madrid's IE Business School, said the $500 billion figure is "astronomical — roughly 2% of U.S. gross domestic product — and lacks clear documentation." At the White House event, OpenAI CEO Sam Altman said, "We wouldn't be able to do this without you, Mr. President." But Altman had been discussing plans for a $100 billion investment 10 months before Trump won his second term, The Washington Post reported, including an Abilene, Texas, data center which began construction in summer 2024. "AI investments have been on a global trajectory driven by technological maturity and competitive pressure, especially from China," Dans said. "Any U.S. president would have seen a surge." NVIDIA NVIDIA, another AI company, said it plans to invest up to $500 billion on U.S. infrastructure over the next four years. Previously, NVIDIA manufactured most of its chips in Taiwan. "It is unlikely Nvidia would have moved any production to the U.S. if it was not for pressure from the Trump administration," Gil Luria, an analyst with the financial services firm D.A. Davidson, told Reuters. However, Luria added, "The half a trillion number is likely hyperbole." Dans said that although tax cuts from Trump's first term have benefited the company's focus on U.S.-based efforts, "the core growth likely would have occurred anyway," regardless of the president. Apple On Feb. 24, days after Apple's CEO, Tim Cook, met with Trump, the consumer electronics giant announced it plans to spend "more than $500 billion in the U.S. over the next four years." Analysts have expressed skepticism that this represents new investment. Dans called the investment "simply more of what (Apple) already does," from "day-to-day activities with thousands of suppliers in all 50 states to the operation of its domestic data centers, as well as its investments in Apple TV+ and other projects already manufactured in the country." In a note to investors, David Vogt, an analyst with the Swiss-based bank UBS, wrote, "Call us a skeptic. … We believe (the figure) lacks substance." IBM IBM announced April 28 plans to invest $150 billion in the U.S., including more than $30 billion in research and development on U.S-based manufacturing of mainframe and quantum computers. This is "not clearly Trump-related," Dans said. "IBM's strategy pivots have been underway since the 2010s." Luria said, "While we believe IBM will continue to invest in the emerging area of quantum technology, the bombastic figure is more likely a gesture towards the U.S. administration," Reuters reported. Taiwan Semiconductor Manufacturing Co. Taiwan Semiconductor Manufacturing Co., which makes semiconductors for computing and electronics, has pledged to spend $100 billion in the U.S. Analysts said this number is the most well-supported among the investments that Trump cites. Although bringing semiconductor production back to the U.S. began during Trump's first term, it was "greatly accelerated by" Biden's CHIPS and Science Act, which prompted years of investment before Trump's second term, Dans said. Over the past five years, the company has spent at least $65 billion on fabrication facilities near Phoenix, funded in part by $6.6 billion from the CHIPS and Science Act. Overall, Dans said, "Trump might deserve some partial credit for setting a more aggressive tone on economic nationalism and supply chain reshoring, and for lowering the corporate tax reform, which did affect repatriation and some investment decisions. But most of these trends — the AI boom, the semiconductor reshoring, the cloud computing infrastructure — are long-term structural shifts that predate Trump and will continue regardless of who is in office." Trump said, "We have now close to $10 trillion, think of that, $10 trillion" in investments. "We're talking about essentially two months." The White House has pointed to investment announcements totaling $5.1 trillion, including $2.1 trillion from companies and the rest from countries. That's at least $4.9 trillion short of Trump's figure, and these announcements represent future spending, some of which is planned over four years, five years or a decade. Experts said many of the dollar amounts are aspirational and that the investments announced might never be fully reached. They also said some of this investment would have occurred regardless of who was president. We rate the statement False. PolitiFact Researcher Caryn Baird contributed to this report. C This article originally appeared on Austin American-Statesman: Trump falsely claims he has secured $10 trillion in investments for U.S.
