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☆ U.S. households are hitting their own debt ceiling. Here's how you can avoid default
▼ + stars: | 2023-05-17 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Currently, the average household's credit card balance is $9,990, just $2,015 shy of where that tab hits its limit, the report found. High inflation is certainly contributing to Americans' high credit card balances, along with record-high interest rates, according to Ted Rossman, senior industry analyst at Bankrate. "We're seeing more people carrying credit card debt, too, often to finance day-to-day essentials." More than one-third also now have more credit card debt than emergency savings, which is the highest on record. "It's never too late to turn things around," Rossman said.

☆ Gen Z is way behind on credit-card payments. It could get even worse when student-debt payments restart.
▼ + stars: | 2023-05-16 | by ( Jacob Zinkula | Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Gen Z is missing their credit-card payments at a rising rate. Their finances could get even worse when student-debt payments resume later this year. 36% of Gen Zers had student debt as of last June, with an average balance of $20,900. If young Americans are struggling to pay down their credit-card debt now, things could get even tougher when student-debt payments resume later this year after an over-three-year pause. "In fact, this is the only time since the New York Fed started tracking these figures in 2003 that credit-card balances did not fall from Q4 to Q1."

☆ Americans’ debt surpasses $17 trillion for the first time
▼ + stars: | 2023-05-15 | by ( Alicia Wallace | ) edition.cnn.com time to read: +6 min

To this point, credit card debt has been rising at the sharpest pace of any debt covered in the report, said Ted Rossman, senior industry analyst for Bankrate. Last year, 39% carried debt month to month. Increases in credit card debt can be a either sign of confidence or struggle, he added. “For the foreseeable future, we’re stuck with high credit card rates, high balances, and more people carrying debt,” he said. “My advice would be to pay down credit card debt, as quickly and cost effectively as possible.

☆ Your credit card debt is probably about to get more expensive—here’s why
▼ + stars: | 2023-05-11 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +2 min

The Federal Reserve's latest interest rate hike means your credit card debt will likely get more expensive to pay off if you carry a balance month to month. However, it's rare that you'll receive a credit card with that interest rate. Typically, credit card interest rates are much higher to account for the costs incurred by the card issuer and the risk of some cardholders not paying back their debt, Rossman says. Currently, the average credit card annual percentage rate (APR) is about 22% for new offers and 20% for existing accounts, according to WalletHub's "Credit Card Landscape Report." Tips for tackling credit card debt

☆ Credit card interest rates keep climbing. Here's what consumers need to know and what they can do about it
▼ + stars: | 2023-05-02 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Here's what consumers need to know about the rising rates on their cards — and what they can do about it. Your credit card statement should list your interest rate, and you can also find it online by logging into your account, Rossman said. There are ways to pay less interestFor those struggling with credit card debt, Rossman said he recommends first looking to see if you qualify for a so-called 0% balance transfer card. watch nowAnother option is taking out a personal loan and using the funds to pay off your credit card debt. GreenPath manager Cook said you can also try asking your credit card issuer if it will lower your interest rate.

☆ Premarket stocks: Apple is giving banks a run for their money
▼ + stars: | 2023-04-18 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Apple’s savings account is managed through Apple products and users must have Apple’s credit card, simply called Apple Card, to qualify for one. “It’s very much a loyalty play because it’s a multi-level process: To get the Apple credit card you need the phone, and to get the savings account you need the credit card. The Apple savings account through Goldman is also insured by the Federal Deposit Insurance Corporation. And Apple’s savings account is hardly the best out there, either. UFB Direct offers a savings account with more than a 5% annual percentage yield.

☆ Apple offers 4.15% high-yield savings to its Apple Card holders
▼ + stars: | 2023-04-17 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +2 min

New York CNN —Apple on Monday announced that it is now offering its Apple Card holders a 4.15% high-yield savings account with Goldman Sachs. They may park both the 3% cash back they receive from using the Apple Card on select purchases plus other savings they may wish to deposit. For instance, you can only get an Apple Card if you use an Apple phone. Bankrate gives the Apple Card high marks as a no-fee rewards credit card, and the convenience of having a high-yield savings account for a cardholder’s cash rewards may be appealing. A high-yield savings account rate, by contrast — including Apple’s new offering — can move up or down without notice at any time.

☆ Most Americans are using tax refunds to boost savings or pay off debt, CNBC survey finds
▼ + stars: | 2023-04-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

mediaphotos | E+ | Getty ImagesMost Americans will use their tax refund to bolster their finances amid economic uncertainty, stock market volatility and lingering inflation. More than one-third of Americans are saving their tax refund this season and 44% have earmarked the funds to pay off debt or bills, according to the CNBC Your Money Financial Confidence Survey, conducted in partnership with Momentive. A recent Bankrate survey also found that tax refunds are important to most Americans' financial situation, and that paying off debt and boosting savings are top priorities this year, which is similar to past findings. Some 45% of Americans expect to receive or have already received a tax refund this season, according to the CNBC survey. "So if you have credit card debt, putting some of this refund money towards that debt is a really good choice."

☆ How long should you support your adult children? Parents — and their kids — weigh in
▼ + stars: | 2023-04-10 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +3 min

And, as it turns out, kids and parents don’t agree on just when exactly that time should be. Baby Boomer and Gen X parents beg to differ, saying their kids should pony up starting at age 21. The Bankrate survey doesn’t specify how many respondents are living with their parents or, conversely, their adult children. Nearly 7 in 10 parents with children 18 or older said they have made a financial sacrifice to help their grown-up kids, according to the survey. Low-income parents — defined as those making $50,000 or less a year — were most likely to say they have made financial sacrifices to help their adult children.

☆ Should adults be financially independent by 21? Boomers think so, but Gen Z disagrees.
▼ + stars: | 2023-04-10 | by ( Aaron Mok | ) www.businessinsider.com time to read: +4 min

Baby boomers and Gen Z kids are divided on what age adults should start paying their own bills. 68% of US parents are sacrificing savings to financially support their adult kids, Bankrate found. Part of the reason could be that parents are sick of sacrificing their hard-earned cash to financially support their adult kids. The study found that 68% of parents have made a "financial sacrifice" to help their adult kids with their finances. As a result, adult children may find it harder to achieve financial independence.

☆ Biden's student loan forgiveness plan may cause a drop in credit scores for some borrowers
▼ + stars: | 2023-04-10 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The Biden administration's sweeping plan to cancel up to $20,000 in student debt for tens of millions of Americans may have an unintended, though hopefully temporary, consequence for some people, experts say. "For many borrowers, it will cause their credit scores to drop," said higher education expert Mark Kantrowitz. Here's why: Throughout the three-year pause on federal student loan payments, borrowers' accounts have been reported to the credit bureaus as current, Kantrowitz said. More from Personal Finance:Here are the 2 Supreme Court student loan forgiveness casesFederal student loan payments could restart in roughly 2 months, or 6Being behind on federal student loans can lead to more money problemsOn-time payments help boost people's scores. Of course, a temporary dip in a credit score will not likely matter much to someone getting thousands of dollars in debt forgiveness.

☆ My younger sister asked me for money advice. Here are 5 answers I gave to improve her financial life
▼ + stars: | 2023-04-02 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

This cash should be in a high-yield savings account, offer higher-than-average returns, experts say. You can find an online savings account offering an interest rate of 3% or more, for example, while the typical savings account rate is around 0.4%. Make sure the savings account you choose is insured by the Federal Deposit Insurance Corp., which means up to $250,000 of your deposit is protected from loss. Where should I invest money? To get a better understanding of your spending, experts recommend looking back at your purchases over the past couple of months.

☆ It's becoming increasingly clear that fintech has a fraud problem
▼ + stars: | 2023-03-29 | by ( Bianca Chan | Paige Hagy | ) www.businessinsider.com time to read: +8 min

"With fast growth comes fast fraud," Frank McKenna, a longtime fraud expert who works with banks, lenders, and fintechs, told Insider. Cash App only requires a zip code, debit-card number, and either an email or phone number to create an account. Cash App's alleged fraud problem could also be the result of its large, active customer base, which numbers some 44 million, according to the company's 2022 annual report. The fact that Cash App offers peer-to-peer payments exacerbates the fraud issue, according to McKenna, the chief fraud strategist at Point Predictive, an anti-fraud software company. Digital-only bank Chime has had its own issues with fraud, Jason Mikula, a fintech analyst and consultant, told Insider.

☆ This credit card debt payoff strategy may sound 'too good to be true,' but it could save you thousands
▼ + stars: | 2023-03-21 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +3 min

If you don't know what a credit card balance transfer is, you're not alone. Say you have $5,805 in credit card debt, the average amount Americans hold, according to TransUnion. If you want to qualify for one, you need a good to excellent credit score. Pitfalls of credit card balance transfers to avoidThere are a few downsides to balance transfers. Commit to paying off credit card debt

☆ More than 5 million households still behind on rent — what to do if yours is among them
▼ + stars: | 2023-03-16 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Viorel Kurnosov | Istock | Getty ImagesConsider your options for rent aidMost rental assistance programs that opened during the pandemic are now closed, but some are still accepting applications. On the National Low Income Housing Coalition's website, you can find a state-by-state guide of relief options and their status. On March 14, The Texas Rent Relief Program began accepting applications for aid, but it's already scheduled to stop doing so on Thursday. Assess your financial resourcesIt's not a strategy experts recommend, but some tenants are using their credit cards to cover their rent. "The biggest potential issue is carrying a balance and paying interest on your rent," Rossman said.

Having multiple credit cards and playing the rewards game can save you hundreds of dollars each year — if you're smart about how you use the cards. "The one big downfall of credit cards is the high interest rates," he added. "But if you're paying in full and avoiding those, then yeah, credit cards are great." Chasing rewards can land you some substantial sign-up bonuses like the Capital One Venture Rewards credit card's 75,000 miles or Chase Ink Business Unlimited's $900 cash back. But getting the most out of your credit cards depends on your spending habits — and finding the perks that would save you the most money.

☆ Consumers keep spending. That might not be good news for them or the Fed
▼ + stars: | 2023-03-06 | by ( Alicia Wallace | ) edition.cnn.com time to read: +9 min

And by November and December, those predictions appeared to be materializing, when data showed consumers had pulled back during the holiday shopping season. During a month chock full of suprisingly strong economic data, the Commerce Department’s retail sales and consumer spending reports far surpassed expectations. “It’s not sustainable to keep spending above their means.”Eyes on the FedHearty consumer spending at a time like this is a double-edged sword, said Ted Rossman, senior industry analyst for Bankrate and CreditCards.com. “The resilience of consumer spending is probably the biggest thing that’s pushed this recession timetable out,” Rossman said. The Home Depot (HD) warned of flat sales for 2023 as consumers continue shift spending from goods to services.

☆ The mortgage rate you get depends partly on your credit score. Here's what to expect
▼ + stars: | 2023-02-25 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +5 min

Yet the interest rate that any particular buyer is able to qualify for depends at least partly on their credit score — meaning you have some control over whether you're able to get the best available rate, experts say. "The score impacts practically everything: loan approval, interest rate, monthly mortgage insurance premiums … and ultimately their payment," said Al Bingham, a credit expert and mortgage loan officer with Momentum Loans. The higher your score, the lower the interest rate you'll be charged. For illustration only: On a $300,000, fixed-rate 30-year mortgage, the average rate is 6.41% (as of Thursday) if your credit score is in the 760-to-850 range, according to FICO. "Improving your credit score really comes down to the fundamentals," said Ted Rossman, senior industry analyst for Bankrate.

☆ Billions of dollars are locked up in a present that's easily given and forgotten -- gift cards
▼ + stars: | 2023-02-23 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +3 min

Such is the sad fate of gift cards – millions of which go unused each year and have a collective value estimated to be in the billions of dollars. Almost two-thirds of American consumers have at least one unspent gift card tucked away in a drawer, pocket, wallet or purse. A separate study on gift card usage found the average amount on unused gift cards last year was $175 per person, up from $116 in 2021. “I thought with high inflation, people would go to town with their gift cards. Some Visa, Mastercard and American Express gift cards add penalties if they’re not used in a specific period of time, said Stumpf.

☆ This is the best strategy to pay down credit card debt — but 37% of borrowers don’t know about it
▼ + stars: | 2023-02-13 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Thankfully, 0% balance transfer credit card offers — which are "one of the best weapons Americans have in the battle against credit card debt" — are even more plentiful than they were a year ago, said Matt Schulz, chief credit analyst at LendingTree. Yet 37% of those with credit card debt don't know that balance transfer offers exist, according to a recent Bankrate report. Credit cards are one of the priciest ways to borrowAt the end of 2022, total credit card debt hit a record $930.6 billion, a 18.5% spike from a year earlier, according to the latest report by TransUnion. From month to month, credit cards are one of the most expensive ways to borrow money. Card credit card annual percentage rates now stand near near 20%, on average, also an all-time high.

☆ Love & money: Four ways to avoid financial infidelity
▼ + stars: | 2023-02-09 | by ( Chris Taylor | ) www.reuters.com time to read: +5 min

NEW YORK, Feb 9 (Reuters) - Sorry to break it to you, but your romantic partner may be sharing a secret relationship. One interesting note is that younger generations are hoarding the biggest financial secrets. ESTABLISH A ‘MONEY DATE’Since talking about money is such a taboo, it is challenging to know how or when to bring it up. DO IT NOWIf you imagine that keeping a few little money secrets will not harm anybody, you are wrong. According to a 2021 study by the National Endowment for Financial Education, 85% said financial infidelity affected their relationship in some way.

U.S. credit card borrowing rates have never been higher and bank lending standards are at recession levels. Many of his colleagues have doubled down on their view that interest rates may need to stay higher for longer. The average U.S. credit card rate is now higher than it has been in at least half a century. This is easily the highest since the comparable data series was started in 2007.chart"It's triple trouble: credit card rates are at record highs, balances are up 15% over the past year, and more people are carrying credit card debt," said Ted Rossman, senior industry analyst at CreditCards.com. "Credit card debt is one of those things that's easy to get into and hard to get out of," he said.

☆ Americans are becoming ‘reluctant’ to make larger purchases, new Fed report shows
▼ + stars: | 2023-02-07 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

US consumers’ outstanding credit grew by $11.56 billion to end the year, according to Federal Reserve data released Tuesday. However, as the year drew to a close — and the Federal Reserve jacked up interest rates to combat inflation — that bullish spending activity was curtailed. “Consumer spending certainly isn’t falling off a cliff, but we are seeing ample evidence that Americans are becoming more reluctant to make certain purchases, especially larger expenses and acquiring physical goods,” he said. Still, those balances growing in a month when spending was down likely shows the toll taken by higher interest rates, Rossman said. “Even if spending may be tailing off a bit, high inflation and higher interest rates are making balances harder to pay off,” he said.

☆ Visa revenue growth slows more as tough economy sobers spending
▼ + stars: | 2023-01-27 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

REUTERS/Philippe Wojazer/Illustration//File PhotoJan 26 (Reuters) - Visa Inc's (V.N) revenue growth continued to wind back to pre-pandemic levels in the first quarter as the post-lockdown travel craze ebbed and consumer spending slowed in a tough economy. The growth was, however, far lower than a 40% surge in cross-border volumes in the first quarter of 2021 and a 20% jump in payments volumes. The firm's exit from Russia will impact reported payments volume growth rates in the second quarter, Prabhu said on a post-earnings call. Earlier in the day, rival Mastercard Inc (MA.N) forecast current-quarter revenue growth below expectations as pent-up demand for travel was seen slowing going forward. Visa reported a profit of $2.18 a share, comfortably above the $2.01 estimated by analysts, according to Refinitiv.

☆ Visa profit beats estimates on resilient consumer spending
▼ + stars: | 2023-01-26 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

[1/2] A Visa credit card is seen on a computer keyboard in this picture illustration taken September 6, 2017. REUTERS/Philippe Wojazer/Illustration//File PhotoJan 26 (Reuters) - Visa Inc's (V.N) first-quarter profit beat Wall Street targets on Thursday as its payments volume held steady with Americans still spending on international travel despite an economic slowdown. That was, however, far lower than last year's 40% surge in cross-border volumes and a 20% jump in payments volumes. Reuters GraphicsVisa's revenue rose at the slowest rate in seven quarters, gaining 12% to $7.9 billion. read moreThe company on Thursday reported a profit of $2.18 a share, comfortably above the $2.01 estimated by analysts, according to Refinitiv.

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