Tag #Credit Card Debt

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Credit Card Debt Forgiveness: Weighing Benefits and Risks in a High-Rate Environment

High US credit card debt, driven by elevated interest rates (near 23%), increased spending, and inflation, is prompting many to explore debt forgiveness programs; however, these programs offer potential benefits like lower settlements and simplified repayment but come with risks such as credit score...

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Home Equity Loans: A Strategic Move to Tackle High-Interest Credit Card Debt in 2025

In 2025, using home equity loans or HELOCs to pay off high-interest credit card debt offers significant financial advantages due to lower (around 8% versus 23%) and fixed interest rates, but carries the risk of home loss if payments are missed.

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High US Credit Card Debt Spurs Debt Consolidation Strategies

Soaring US credit card debt, averaging nearly \$8,000 per cardholder, is fueled by high interest rates (23% average, over 30% for retail cards) and persistent inflation, leading to debt consolidation as a common solution among consumers.

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Record-High Credit Card Debt Fuels Delinquency Crisis

As of Q3 2024, the average American credit card debt reached nearly $8,000, with a 9% delinquency rate, causing credit damage and leading to legal debt sales to third-party collectors, a practice permitted under federal law and regulated by the FDCPA.

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Debt Collection: Consumer Protections Under the FDCPA

The Fair Debt Collection Practices Act (FDCPA) requires debt collectors to provide detailed documentation proving the validity of a debt (original credit agreement, account statements, etc.) when contacted; failure to do so makes collection efforts illegal; 53% of 2023 CFPB complaints concerned debt...

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High Credit Card Debt Prompts January Push for Debt Forgiveness

Rising inflation and high credit card interest rates are increasing financial strain on Americans; consumer credit card debt rose from \$1.14 trillion to \$1.17 trillion between Q2 and Q3 2024, prompting consideration of debt settlement options like credit card debt forgiveness to alleviate the burd...

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Inflation Surge Delays Savings, Fuels Demand for Debt Relief in 2025

Rising inflation in late 2024, despite the Federal Reserve's interest rate cuts, is delaying expected savings and increasing the need for debt relief strategies, particularly for those with high credit card debt, home equity loan considerations, or collection calls.

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cbsnews.com
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Unemployment and Soaring Credit Card Debt Create Financial Crisis for Americans

Rising credit card debt, averaging $8,000 per cardholder, is compounded by unemployment, forcing many Americans into financial hardship due to high-interest rates and prolonged job searches.

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Five Strategies to Reduce High Credit Card Interest Rates in 2025

With average American credit card debt exceeding \$8,000 and interest rates near 23%, multiple strategies exist to reduce interest charges, including balance transfer cards, negotiating lower rates, extra payments, debt consolidation, and the avalanche method.

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smh.com.au
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\$2.7 Billion Christmas Debt Hangover for 1.7 Million Australians

Approximately 1.7 million Australians are in debt totaling \$2.7 billion due to Christmas spending, with an average debt of \$1634 per person; many will take six months or more to repay.

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Debt Consolidation: A Potential Solution to High-Interest Credit Card Debt

High inflation has increased consumer goods costs, pushing many Americans to use high-interest credit cards; debt consolidation loans and programs offer potential solutions, but eligibility depends on credit scores, and alternative debt relief methods exist.

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china.org.cn
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Record U.S. Credit Card Defaults Signal Economic Slowdown

U.S. credit card defaults reached a 14-year high in 2024, with \$46 billion in delinquent loans written off during the first nine months—a 50 percent increase year-over-year—primarily impacting low-income households struggling with inflation and high interest rates, potentially slowing economic grow...

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