Interest Rate Impact - A quarter of a percent rate cut will lower borrowing costs, especially on variable rates like credit cards and auto loans, but will also lower saving rates [1] Budgeting and Expense Management - Individuals should create a budget to track monthly income and expenses to identify areas for potential cuts [2] - Selling unused items around the house can generate extra cash [2] - Limiting credit card use and using cash or debit cards can help reduce impulse buys [2] Credit Card Debt Reduction - Extra cash should be directed towards paying down debt [3] - Consumers should ask their credit card companies for lower rates [4] - Setting up autopayments for more than the minimum balance can gradually reduce debt [5] - Utilizing 0% interest credit cards for balance transfers can help focus on debt repayment, but a 3% to 5% fee may apply [5] - A $6,000 balance transfer with 0% interest over 15 months requires monthly payments of $400 to pay it off [7] Mortgage Management - Bi-weekly mortgage payments or rounding up payments can help reduce the principal [8] - Refinancing at a lower rate can be beneficial, but may be difficult for some [8] - Shortening the loan term can maximize the mortgage [9] - Consider potential prepayment penalties before paying off the mortgage early [9] Loan Management - If struggling with car loan payments, consider selling or trading in the car for a cheaper one [11] - In cases of financial hardship, request a loan modification from lenders [11] - For federal student loans, explore income-driven repayment plans via studentaid.gov [11][12] - Refinance private student loans, but avoid refinancing federal loans into private loans due to loss of federal protections [12]

TikToker cha_cha_p from Florida has paid $7,450 on a student loan with an original balance of $8,645. But, with an 8% interest rate, he now owes $8,750. So, even though he’s been paying his student loan off for years, he still owes $100 more than his original balance. “That’s why people hate student loans,” he said on TikTok [1]. Must Read While $100 is not a huge sum, consider the calculation for the average American student loan borrower, who has more than four times the balance owing. But, it’s not ...

New federal data suggests that over 1,100 colleges and universities are at risk of losing access to federal financial aid programs because too many of their former students are not repaying their student loans. (Photo: Eros Hoagland via Getty Images) https://t.co/vElTb0IWM9 https://t.co/57E9NhVEHP ...

New federal data suggests that over 1,100 colleges and universities are at risk of losing access to federal financial aid programs because too many of their former students are not repaying their student loans. (Photo: Eros Hoagland via Getty Images)https://t.co/LMCDFfOEYf https://t.co/eebi3l4HnO ...

New federal data suggests that over 1,100 colleges and universities are at risk of losing access to federal financial aid programs because too many of their former students are not repaying their student loans. (Photo: Eros Hoagland via Getty Images)https://t.co/CihS26dA75 https://t.co/Byh1aMUEpC ...

President Trump’s big tax-and-spending law includes new restrictions on how much students can borrow and how they repay. Here’s a guide to what is changing. https://t.co/6j0l7GEyjG ...

President Trump’s big tax-and-spending law includes new restrictions on how much students can borrow and how they repay. Here’s a guide to what is changing. https://t.co/IvPBgYB7RE ...