Why now is a crucial time to pay off your credit card debt
11 months ago

Why now is a crucial time to pay off your credit card debt

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. A combination of inflation, increased interest rates, and the end of pandemic-tied relief, such as the moratorium on student loan payments, has led to record credit card debt, experts say. In the third quarter of 2023, Americans held more than $1.05 trillion on their credit cards, and the average interest rate on a given credit card is now roughly 21.5%, the highest it’s been since the Federal Reserve started tracking rates in 1994. If you're facing increased credit card debt, while feeling the ongoing effects of inflation, here's what to consider: ASK FOR A RATE CUT One of the first things you should do is ask your credit card company to lower your rates. While the Federal Reserve signaled Wednesday that its first interest rate cut is likely months away, the average credit card interest rate is already far and away higher than the rate set by the Fed.

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The Federal Reserve starts cutting interest rates in a big moment for the economy
3 months, 3 weeks ago

The Federal Reserve starts cutting interest rates in a big moment for the economy

NPR  

The Federal Reserve starts cutting interest rates in a big moment for the economy toggle caption Win McNamee/Getty Images North America The Federal Reserve moved aggressively Wednesday to start cutting interest rates as its single-minded focus on fighting inflation gives way to a growing interest in protecting the job market. On average, members of the Fed's rate-setting committee expect borrowing …

Credit card delinquencies are rising. Here’s what to do if you’re at risk
7 months ago

Credit card delinquencies are rising. Here’s what to do if you’re at risk

Associated Press  

NEW YORK — Seriously overdue credit card debt is at the highest level in more than a decade, and people 35 and under are struggling more than other age groups to pay their bills. The share of credit card debt that’s severely delinquent, defined as being more than 90 days overdue, rose to 10.7% during the first quarter of 2024, …

Why now is a crucial time to pay off credit card debt
11 months ago

Why now is a crucial time to pay off credit card debt

Associated Press  

NEW YORK — For Americans who lacked savings prior to the pandemic, financial stress is rising. A combination of inflation, increased interest rates, and the end of pandemic-tied relief, such as the moratorium on student loan payments, has led to record credit card debt, experts say. The New York Fed’s report found that 6.4% of credit card debt was delinquent …

These 4 Strategies Can Help You Break Free From Credit Card Debt
1 year, 4 months ago

These 4 Strategies Can Help You Break Free From Credit Card Debt

News 18  

Credit cards offer convenience and purchasing power, but they also come with a crucial responsibility – managing your expenses and settling your bills in a timely manner in order to avoid costly penalties. Unrestrained spending can quickly lead to a ballooning credit card balance, resulting in some kind of financial stress. Here we take a look at some valuable tips …

How a Fed increase could affect credit card debt, auto loans
1 year, 8 months ago

How a Fed increase could affect credit card debt, auto loans

Associated Press  

NEW YORK — The Federal Reserve has raised its key interest rate yet again in its drive to cool inflation, a move that will directly affect most Americans. Rates on credit cards, mortgages and auto loans, which have been surging since the Fed began raising rates last year, all stand to rise even more. Economists worry, though, that the Fed’s …

How a Fed increase could affect credit card debt, auto loans
1 year, 8 months ago

How a Fed increase could affect credit card debt, auto loans

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Rates on credit cards, mortgages …

What the Fed rate increase means for your credit card bill
1 year, 9 months ago

What the Fed rate increase means for your credit card bill

Associated Press  

NEW YORK — The Federal Reserve raised its key rate by another quarter point Wednesday, bringing it to the highest level in 15 years as part of an ongoing effort to ease inflation by making borrowing more expensive. The interest rate increase comes at a time when credit card debt is at record levels. Here’s what the increase means for …

Fed rate hike is smallest in nearly a year. It will still impact your money.
1 year, 11 months ago

Fed rate hike is smallest in nearly a year. It will still impact your money.

CBS News  

What the latest Federal Reserve interest rate hike means for the U.S. economy The Federal Reserve on Wednesday made its eighth consecutive rate hike since March of 2022. Uncertainty abounds "The Fed's interest rate movements may be less or smaller than last year, but that doesn't take away the majority of the uncertainty," said Wei Hu, head of financial research …

How the Fed's steep rate hikes stand to affect your finances
2 years, 3 months ago

How the Fed's steep rate hikes stand to affect your finances

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Yet as the Federal Reserve has rapidly increased interest …

Americans will feel the impact as Fed raises rates. Here's what you should know
2 years, 9 months ago

Americans will feel the impact as Fed raises rates. Here's what you should know

NPR  

Americans will feel the impact as Fed raises rates. Sponsor Message "It starts to push it from, like, 'we could maybe make it work' to the point where you're just like, 'it's not worth it,' " says Zach Gubran of Fort Collins, Colorado. "Higher mortgage rates may be helpful in cooling the housing market," says Selma Hepp, an economist with …

Fed raises interest rates for first time since 2018. Is it too little, too late?
2 years, 9 months ago

Fed raises interest rates for first time since 2018. Is it too little, too late?

LA Times  

Federal Reserve Chair Jerome H. Powell wants to get a grip on inflation without snuffing out the economic recovery from the pandemic. S&P Global still sees U.S. economic growth at an above-potential rate of about 3% for this year — similar to the Fed’s new economic projection released Wednesday. But counting Wednesday’s quarter-point boost, the rate the Fed charges banks …

Avalanche or snowball: which is your debt plan?
4 years, 7 months ago

Avalanche or snowball: which is your debt plan?

Live Mint  

When working as a debt counsellor with Abhay Credit Counselling Centre, an initiative by the Bank of India, V.N. Dedicate more resources to the debt with the highest interest rate, and pay the minimum to settle other debts. Once a person clears the debt with the highest interest rate, he will have more money in hand,” said Melvin Joseph, a …

Where there is a will, there is a way out of the debt black hole
5 years, 5 months ago

Where there is a will, there is a way out of the debt black hole

Live Mint  

The tragic end of V.G. D. Muthukrishnan, a Chennai-based certified financial planner, said, “If more than 30% of your monthly income goes towards servicing your EMIs on various loans, you are close to being in a debt trap.” If that number is more than half, you are definitely in a debt trap. “Credit card should be the first to focus …

7 tips to pay off your debt quickly and become debt-free : Life Kit : NPR
5 years, 10 months ago

7 tips to pay off your debt quickly and become debt-free : Life Kit : NPR

NPR  

How to pay off your debt in 7 steps Enlarge this image Angela Hsieh/NPR Angela Hsieh/NPR Subscribe to Life Kit's weekly newsletter and get expert advice on lifestyle topics like money, relationships, health and more. Some 50% of people with credit cards don't pay them off every month, meaning millions are paying high interest rates on their debt. "You'll be …

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