Making only minimum payments toward your credit card can be risky. If you make a habit of only paying the minimum amount due each month, it can be easy to rack up a lot of credit card debt over time. But during times of financial hardship, it also gives you some flexibility to direct money elsewhere without missing a credit card payment. Before you decide to make a minimum payment toward your card, it’s smart to know exactly how much you’ll owe and how to avoid long-term debt balances with responsible cr ...

A medical credit card can provide an alternative method to pay for medical expenses if you can’t cover the cost through insurance and personal funding. However, there are certain factors to consider, such as high interest rates and fees, if you want to use a medical credit card or any type of credit card to pay for medical debt. What is a medical credit card? A medical credit card is a type of credit card that can typically only be used to pay for medical expenses. For example, you might use a medical cr ...

As Gen Z awaits its share of the $124 trillion Great Wealth Transfer from their baby boomer relatives, the generation’s financial footing is being put to the test. Typically, younger consumers see the fastest year-over-year gains in credit scores as they build their financial histories. But this year, the opposite happened: Gen Z just experienced the steepest annual drop of any age group since 2020, with their average FICO credit score slipping three points to 676. That’s 39 points lower than the national ...

Core Insights - The article discusses the implications of personal bankruptcy, highlighting a nearly 12% year-over-year increase in bankruptcy filings in the U.S. as of June 30, 2025, and presents reasons to avoid bankruptcy as a financial solution [2]. Financial Implications - Bankruptcy filings become public records, which can negatively impact job and housing opportunities, particularly in financial sectors [3]. - The costs associated with filing for bankruptcy can be significant, with initial fees ranging from $313 to $338, and potential attorney fees around $4,000, in addition to credit counseling costs of $10 to $50 per course [5]. - Bankruptcy severely damages credit scores, remaining on credit reports for seven to ten years, which can hinder loan qualifications, increase insurance rates, and complicate job or apartment searches [6][7]. Homeownership Challenges - Bankruptcy can make it more difficult to achieve homeownership, as lenders may be less willing to work with individuals who have a bankruptcy on their credit report [8].

Before canceling, it’s worth it to look at how much money you’re saving each year by using the Amex Platinum card, which recently raised its annual fee to $895. - Getty Images/iStockphoto Dear Dollar Signs, American Express AXP recently hiked the annual fee for its Platinum card to $895. I’ve had the card for five years, but I want to cancel. However, as I understand it, closing a credit card would hurt my credit score. I am 40 years old, I earned $298,000 last year, and I’m in a very unique life situat ...

The big hit, however, came from student loan delinquency, which disproportionately affects Gen Z. FICO showed the student loan delinquency rate reaching a record high of 3.1% this year, with Gen Z carrying 34% of the open student loans. Overall the cohort posted an average credit score of 676 — nearly 40 points lower than the national tally.Personal loan delinquency reached 6.1%, which the report notes is higher than 2019 numbers (5.6%) and just slightly lower than the Great Recession (7%), and mortgage and ...

When considering taking your first personal loan, it is prudent to be cautious. Taking on a personal loan is a major financial decision. That is why borrowers need to understand basic concepts related to personal loans, such as applicable interest rates, processing fees, and prepayment penalties. This is vital because it enables individuals to make more informed financial decisions.Furthermore, personal loans can be a great option for emergencies or planned expenses. Still, borrowing wisely is crucial to av ...

Core Insights - The national average FICO score has decreased to 715, marking a two-point drop from 2024 and the second consecutive year of decline [1] - The decline in credit scores is attributed to economic factors stemming from the pandemic, including rising prices and higher interest rates [2][6] Consumer Behavior - To cope with the high cost of living and increased student loan payments, 24% of Americans have opened new credit cards and 13% have taken personal loans in the past year [3] - Credit has become essential for many consumers during this period of economic uncertainty [3] Delinquency Rates - Delinquency rates for auto loans, student loans, personal loans, and credit cards have risen, with student loan delinquency reaching an all-time high of 3.1%, affecting 6.1 million consumers [4] - The auto loan delinquency rate has increased by 24% since 2021 [4] - Delinquency rates are critical as they constitute 35% of the FICO score calculation, with consumers having at least one delinquency seeing an average score drop of 69 points [5] Economic Context - Current delinquency rates are comparable to levels seen during the Great Recession, indicating economic conditions more aligned with a recession than expansion [6] Demographic Impact - Gen Z has been particularly affected by credit score fluctuations, with an average score of 679, which is 39 points lower than other age groups [7]

Americans skipping student loan payments are seeing massive hits to their credit scores https://t.co/Y1Qaw5LUg1 ...

Group 1 - Financial expert Dave Ramsey criticizes the credit card industry, asserting that credit card companies do not deserve consumer trust and often provide advice aimed at keeping individuals in debt [1] - During a segment of "The Ramsey Show," Ramsey challenged a caller's concerns about closing credit card accounts negatively impacting her credit score, emphasizing that credit scores primarily serve the purpose of facilitating borrowing [2][3] - Ramsey encourages individuals to disregard credit score warnings and focus on becoming debt-free, praising those who successfully manage their finances [3] Group 2 - Ramsey argues against the notion that using credit cards responsibly is common, citing that 78% of people carry balances month to month, which he compares to the common failure to pay off mortgages as intended [4] - He advocates for the use of debit cards as a safer alternative to credit cards, stating that they provide the same convenience without the associated risks of debt [4]