Latest news with #creditcardusers
CBS News
18-06-2025
- Business
- CBS News
Stuck with high-rate credit card debt? Make these 3 moves before July.
Compounding credit card debt needs to be addressed sooner than later, especially in today's high-rate climate. Getty Images Being saddled with credit card debt is always damaging to your financial health. But in the economic landscape of recent years, it can be even more threatening than usual. With the average credit card interest rate just barely under a recent record high, and the average credit card debt load close to $8,000, approximately, making the minimum monthly payments as usual won't work right now. Minimum payments, after all, could take years to erase what you owe, all on the assumption that you don't add any additional debt in the interim. Against this backdrop, then, and against the reality that the interest rate climate is unlikely to cool enough to help credit card users in any material way, there are some smart moves worth making right now. Making these moves in a smart but expedient way could be the difference between having your debt compounded even further or regaining your financial independence. So, consider making the three moves below right now, before July 1. See which debt relief technique makes the most sense for your credit card debt here. 3 credit card debt relief moves to make before July Want to reduce your credit card debt permanently? Consider making these three moves now, in the final days of June: Check your current credit card interest rates The average credit card interest rate is 21.37% right now, equating to $21.37 in interest for every $100 borrowed. And that's just the average rate, meaning that you may be paying even more, depending on your credit card company and your credit profile. So start by checking what your current credit card interest rates actually are. And if they're around that rate (or higher), look for ways to immediately reduce them. This can begin with a simple phone call to the company to explore your options, but it can extend to items like balance transfer credit cards, which often come with much lower rates. Just don't become complacent with today's high rates. With compounding interest to contend with, even seemingly manageable debt balances can quickly become out of control. So, take action sooner rather than later. Explore your debt relief options online today. Calculate your repayment timeline Can you pay off what you owe by making minimum payments, or slightly more than minimum payments, with a reasonable timeline? If you can do so without damaging your finances or severely reducing your budget, then consider doing so now by making a higher-than-usual June payment. If you can't, however, then it may be the prompt you need to explore other, more extensive alternatives. You won't know which group you fall in, however, without first calculating your repayment timeline. So start there, both tied to what you're currently paying off as well as what you may be able to do by making some financial adjustments. And, be realistic about your future credit card usage, as it won't help to calculate a timeline without the use of a credit card in totality, especially if you're already accustomed to its presence in your everyday budget. Explore your credit card debt relief options There is no uniform credit card debt relief option. And that's a positive, as there's likely an option that can be tailored to your circumstances. If you owe more than $5,000 and have a financial hardship causing you to remain behind on payments, you may qualify for credit card debt forgiveness. If you just need help building a payoff plan, however, credit counseling may be better. Or a debt management program may suffice. Debt consolidation loans, meanwhile, may not be considered a traditional credit card debt relief solution, but if it means paying down your debt with less interest, over a shorter period, without the damage to your credit score that some other solutions come with, it could be exactly what you need. But you won't know which is the most appropriate until you explore all of your credit card debt relief options in detail. Start that process now, so you're prepared to pursue the optimal one this July. The bottom line You may be stuck with expensive credit card debt right now but it doesn't mean you have to remain in that financial quagmire much longer. Start by checking your credit card interest rates this June, both for opportunities to cut them down and to better determine a more accurate repayment timeline. And be open to all potential credit card debt relief options, including those offered by professionals. By making these three timely moves now, credit card users can potentially stop their debt situation from worsening and, more importantly, start improving it as soon as July 1.
Forbes
17-06-2025
- Business
- Forbes
New Chase Sapphire Reserve Benefits To Know About
A few things in life are certain: death, taxes and issuers changing your favorite credit cards. Chase is keeping the tradition alive with a full revamp of its beloved Chase Sapphire Reserve®. With a flood of new perks and a steep annual fee hike, for better or worse, as of June 23, the refreshed Sapphire Reserve will arrive. If you are a big spender, you can unlock even more benefits when you spend $75,000 in a calendar year: Your rewards on spending are also changing. These are the new earning rates for your Chase Sapphire Reserve card: Chase is replacing its 50% bonus on travel bookings made through Chase Travel with an all-new Points Boost feature. With the promotional Points Boost offers, select hotels and flights can be redeemed for up to 2 cents per point in value. Note that only select flights and hotels booked through Chase Travel are eligible for Points Boost. All other Chase Travel bookings will be worth 1 cent per point. You might want to be sitting down for this one. The annual fee on the Sapphire Reserve now rings in at $550. That's a $245 increase. And it gets worse—authorized user cards jump to $195 per person, up from $75 each, or in other words, a $120 increase. Note: As of June 23, new applicants will have access to the new benefits but will incur the increased annual fee. Existing card members will have access to Points Boost and the additional features and benefits starting October 26, 2025. The annual fee will increase on their next anniversary date, following October 26. That's a lot to take in—and if you're feeling overwhelmed, you're not alone. Whether you already have it, or you're thinking about applying, it can be tricky to figure out if the Chase Sapphire Reserve is worth it for you. While there's no one-size-fits-all answer, here are a few steps to help you decide: With a little math and a comprehensive look at your travel plans, you'll be able to tell if the new Sapphire Reserve deserves a spot in your wallet.
CBS News
10-06-2025
- Business
- CBS News
3 things to know about credit card interest rates right now
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Elevated credit card interest rates have caused card balances to surge in recent years. Getty Images When credit card interest rates are low, it can make paying your credit card bill each month relatively easy and affordable. Even by just paying minimum payments or slightly more than that, with a low credit card interest rate, your credit card debt doesn't necessarily need to become a major financial burden. Unfortunately, in the interest rate climate of recent years, this hasn't been the case. Credit card interest rates surged to a record high toward the end of 2024 and, combined with issues like inflation, an overall elevated interest rate climate and broader economic uncertainty, credit card users soon found themselves in a hole that's been difficult to dig out of. Now, with the average credit card debt around $8,000, many find themselves wondering about their next moves and, more importantly, if they should reach out for professional debt relief help. To better determine next steps, it may help to take a step back. There are some timely items about credit card interest rates, specifically, that can better inform the next steps for cardholders. Below, we'll examine three things to know right now. Review your credit card debt relief options online today. 3 things to know about credit card interest rates right now Here are three timely things to know about credit card interest rates: Credit card interest rates are down – slightly Sure, they're down from a record high, but a decline in credit card interest rates is still a positive development, even if the decline is not as steep as many had hoped for. Last November, credit card interest rates surged to a record 23.37% (compare that to the 16.43% they were at in August 2020). Now, however, they're down two full percentage points. At 21.37%, current rates aren't exactly cheap for credit card users, but they're at least moving in the right direction. This should, in theory, make your existing credit card debt slightly less expensive to maintain and it could allow you to make a bigger dent in what you owe if you continue to make your payments as you were at the higher rate. Still, with double-digit rates making it difficult to reduce what you owe in a meaningful way and a decline in average rates not nearly potent enough to cut your debt independently, it may be time to review your credit card debt relief options as an alternative. See what debt relief option makes the most sense for your situation here. They could continue to decline later this year It wouldn't be unusual for credit card interest rates to continue to decline this year. While the Federal Reserve isn't expected to cut rates at its June meeting, it's possible when the central bank meets again in July and likely when it meets again in September. If that happens, rates on credit cards may decline further and that drop could happen preemptively, before any Fed rate-cutting action, if credit card companies foresee rate cuts as imminent. Declining inflation figures and steady unemployment data could also combine to spark further reductions in credit card rates, though it's important to note that these are likely to be gradual and in minimal increments, at least through the end of 2025. Waiting for significant rate relief isn't worth it Gradual and minimal increment rate declines, even if they're generally a positive development, are likely not worth waiting for when cardholders already have thousands worth of debt. Keep this in mind both now and in the weeks and months ahead as it may be tempting to wait for the credit card interest rate climate to stabilize instead of taking action to reduce what you already owe. But that could be a costly misstep. With the reality of compounding interest making a once manageable debt load expensive now and the likelihood of rate reductions having a muted impact on what you already owe, waiting for significant rate relief isn't likely worth it. This is especially so when considering viable alternatives like credit card debt forgiveness, debt management programs, credit counseling and even balance transfer credit cards and debt consolidation loans that will allow you to better focus on what you owe without the distraction (and cost) of high interest rates to contend with at the same time. In other words, hope that interest rate relief will present itself, but have a back-up plan in place to sort through your existing debt obligations. The bottom line The credit card interest rate climate is not as poor as it was six months ago but it's not nearly as low as most cardholders need it to be either. Against this reality, and the potential for rates to continue to fall in small but gradual increments, many borrowers could benefit from exploring their credit card debt relief options. With a variety of options to choose from, there's likely a relief technique suited well for your unique circumstances, giving you the opportunity to reduce what you owe once and for all.
CBS News
06-06-2025
- Business
- CBS News
3 things credit card users should be doing now
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Changing your online payment method from a credit card to a debit card could make sense now. Getty Images Using your credit card is often quick and effortless, providing an easy way to pay for everyday purchases and online shopping needs. And in the modern era, with credit card numbers being automatically saved to your online accounts, it feels like making purchases is easier than ever. But that ease can come with dangerous risks if your credit card spending isn't managed properly, as was seen recently, when a new report showed credit card balances up 6% year-over-year. Considering that the average credit card balance is close to $8,000 now and the average credit card interest rate is around 21% (down from a record high last year), it becomes even clearer that the simplicity associated with credit card usage has resulted in significant amounts of debt for many Americans. If you're one of those credit card users – or are looking to avoid becoming one – some tried and true techniques are worth remembering (and utilizing) right now. Below, we'll break down three things to consider doing in today's economic climate. Start by checking your credit card debt relief eligibility requirements here. 3 things credit card users should be doing now Here are three things credit card users should be doing now: Use cash and debit cards more frequently This may seem obvious, but if you want to improve your debt situation, you'll need to make some small but important changes, like using cash and debit cards more frequently, preferably in place of the expenses you're currently using your credit card for. What does this mean in practical terms? It may be as simple as changing your payment methods on your online accounts to your debit card from your existing credit cards. It may also mean giving yourself an "allowance" of cash to use from each paycheck (post-expenses paid). When that runs out, you're out of discretionary spending money until you get paid again. Sure, this may come at the expense of reduced credit card rewards and points, but if you've been racking those up by accumulating high-rate credit card debt, those rewards are not nearly as advantageous as they appear on paper. Learn more about the ways to reduce your debt here. Look for ways to consolidate your debt and lower your rates Don't want to turn to cash or your debit card? That's understandable, but it doesn't mean you need to continue to pay a high interest rate on your credit card, either, particularly when there are attractive balance transfer credit card alternatives and much lower-rate debt consolidation loan offers on the market now. The average personal loan rate, for example, is almost 10 percentage points lower than the median credit card rate right now. Balance transfer cards, meanwhile, come with low or 0% introductory rates for qualified users, giving you an easy way to pay more toward your principal balance each month. Just be sure to take advantage of that limited window of opportunity as rates will change here over time. And, more importantly, take a closer look at the spending habits that put you in this financial dilemma to begin with. Without addressing (and resolving) that first, a balance transfer card or debt consolidation loan won't be as effective. Speak with a debt relief servicer about high balances Some credit card debt balances are manageable with due diligence, consistency and the techniques outlined above … and some are not. And if you're a credit card user struggling to pay down, or even make a significant reduction in your balance, it's worth speaking with a debt relief service provider to discuss the next steps. A conversation with a representative is non-committal but informative, allowing you to better understand your current situation and, importantly, potential resolutions. With options ranging from credit counseling to debt management programs to credit card debt forgiveness for higher balances, there's like a debt relief solution applicable to your situation. But you won't know which is right or how to get started until you reach out for help. Chat with a debt relief specialist to determine your next move. The bottom line While the above moves can make sense for a wide range of credit card users, they're certainly not the only items worth addressing now. But they're a good starting point for credit card users who want to maintain their financial health and improve their credit card use approach. By doing these three things now, these users can start the delayed work of paying down their debt balances and, more importantly, regaining their financial independence and well-being.
CBS News
19-05-2025
- Business
- CBS News
3 critical credit card debt considerations borrowers should make now
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. The path toward credit card debt relief may involve acknowledging some unfortunate realities in today's economic climate. MilanNews last week that credit card balances are falling was welcomed by American borrowers, but it may have masked what still appears to be a credible issue: millions of Americans are still struggling to pay off all that they've accumulated. Credit card balances in the first quarter of 2025 were at a combined $1.18 trillion, and while that's a decline from the final quarter of 2024, it still represents a 6% increase compared to the same time period last year. Add in the fact that the average credit card debt balance is close to $8,000 right now and that credit card interest rates are only marginally down from a recent record 23% and it becomes even clearer that the path toward financial freedom is still a ways off for many. That all noted, there may be some credit card users with a large debt load, or with a card with an interest rate above that average, who are considering staying on their current path anyway. With a variety of debt relief options that can be personalized to your needs, this could be a mistake. However, it helps to know what to consider to better inform your next steps toward a final credit card debt payoff solution. Below, we'll break down three critical credit card debt considerations borrowers should make now. Start by checking your credit card debt forgiveness eligibility here. 3 critical credit card debt considerations borrowers should make now Here are three items credit card users should be thinking about right now: Consideration: Credit card interest rates will remain high Credit card interest rates are driven by a variety of factors, from the federal funds rate to the prime rate and more. But the reality is that credit card interest rates are unlikely to decline materially at any time soon. For context, credit card interest rates hit a record high last fall, directly in the middle of the Federal Reserve's interest rate cut campaign. And rates there have been paused so far in 2025. Even when a cut is issued, though, as many expect at some point later this year, it's likely to be by just 25 basis points, which will have a minor impact on credit card rates, if it does at all. Understanding this unfortunate reality, then, credit card users may be better served by exploring ways to get out of debt that won't require major economic changes to help reduce what they currently owe. Explore your top debt relief options here. Consideration: Your debt is compounding Another reason why you should tackle your credit card debt sooner rather than later: it's compounding. Your credit card interest compounds daily, making even the most innocuous initial debt quickly difficult to pay if accumulated on a high-rate credit card. It won't happen overnight (often past the grace period of 21 to 25 days), but it will build up over time, and it'll be to a significant degree if you have anything close to that 23% interest rate. Even above-minimum payments may not be sufficient in these circumstances, leaving you with little recourse besides turning to a debt relief servicer. Consideration: There's probably a debt relief service that fits your circumstances There is a wide variety of important debt relief options worth exploring and likely one that fits your specific circumstances. Ranging from debt consolidation loans to debt management programs to credit counseling, a debt relief service can evaluate your debt situation to determine which is most appropriate for you. In extreme cases, they may even work with you to come up with the appropriate bankruptcy solution. On the other hand, depending on your qualifications, you may be eligible to have 30% to 50% of your credit card eliminated with the help of a credit card debt forgiveness program (also known as debt settlement). You won't know which is optimal for your situation, however, until you start doing your research and speaking to professionals. Consider making the move now. Get started with debt relief now. The bottom line The unfortunate but sobering reality is that many American credit card users have debt that won't be reduced by any minor changes in the interest rate climate. It's likely to compound with interest if action isn't taken promptly. But with the right debt relief strategy and a new and consistent approach, the path to financial freedom is achievable, and it can begin now, even in today's uncertain economic climate.
