Elevated Credit Card Debt Among Older Americans
Elevated Credit Card A recent AARP survey reveals that nearly half of Americans aged 50 and older with credit card debt are using their cards to cover basic living expenses. Among these individuals, 37% reported higher balances compared to the previous year, with nearly half carrying month-to-month balances of $5,000 or more. This trend raises concerns about financial stability as retirement approaches.
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Proposed Legislation to Cap Credit Card Interest Rates
Senators Bernie Sanders and Josh Hawley have introduced a bill aiming to cap credit card interest rates at 10% for a five-year period. This initiative seeks to provide immediate relief to consumers burdened by high-interest payments, aligning with previous campaign promises to address escalating consumer debt.
Surge in Credit Card Debt During Holiday Season
Despite strong holiday spending, overall household debt in the U.S. did not see a significant surge. Notably, credit card delinquencies remain elevated, with 7.2% of accounts becoming 90 days overdue in Q4 2024, higher than pre-pandemic levels. Total household debt reached $18 trillion, a modest 0.5% rise from the previous quarter. The elevated delinquencies indicate some households struggle with timely bill payments, warranting careful monitoring in upcoming months.
Increase Fraud Cases
Authorities uncovered a significant credit card fraud scheme in Costa Mesa, California, after a woman reported not receiving her new card. The investigation led to the arrest of two suspects and the discovery of stolen cards, blank checks, counterfeit money, and equipment used for producing fake cards. This incident highlights the growing concern of identity theft and credit card fraud.
Strategies for Earning and Redeeming
Travel experts suggest various methods to maximize credit card points for travel, including utilizing sign-up bonuses, spending in categories with higher rewards, and redeeming points for travel-related expenses. These strategies can significantly enhance travel experiences while minimizing costs.
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