Tag: Bankrate

Auto Loan Debt, Credit Card Debt

Federal Reserve Cut and What It Means for Mortgages, Credit Cards, Car Loans

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The Federal Reserve cut its standard interest rate for the first time in nine months. Since the last cut, Americans are dealing with more inflation and a challenging job market.

The federal funds rate, set by the Federal Reserve, is the rate at which banks borrow and lend to one another. While the rates that consumers pay to borrow money are not directly linked to this rate, shifts in Fed policy affect what people pay for credit cards, auto loans, mortgages, and other financial products.

The Fed projected it will cut rates two more times before the end of this year.

Mortgages will be affected gradually.  

For prospective homebuyers, the market has already priced in the rate cut, which means it is “unlikely to make a noticeable difference for most consumers at the time of the announcement,” according to Bankrate financial analyst Stephen Kates. It is anticipated that the declining interest rate environment will provide relief for borrowers over time.

Auto loans are not expected to decline soon.

Americans have faced steeper auto loan rates since early 2022, which are not expected to decline anytime soon.  Prices for new cars have leveled off recently, but remain at historically high levels, not adjusting for inflation. An auto loan annual percentage rate can run from about 4% to 30%. Bankrate’s most recent weekly survey found that average auto loan interest rates are currently at 7.19% on a 60-month new car loan.

Credit card rate relief could be slow.

Interest rates for credit cards are currently at an average of 20.13%, and the Fed’s rate cut may be slow to be felt by anyone carrying a large amount of credit card debt.  The best thing for anyone carrying a large credit card balance is to prioritize paying down high-interest-rate debt, and to seek to transfer any amounts possible to lower APR cards or negotiate directly with credit card companies for accommodation.

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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm; we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Credit Card Debt

Credit Card Debt Report for 2025

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Credit card interest rates are at an all-time high, averaging above 20 percent.  The implications of credit card debt are far-reaching.  Here are several key insights from Bankrate’s 2025 Credit Card Debt Report.

  • 46% of credit cardholders report having a credit card balance. About a quarter (23%) do not think they will ever be able to pay it off.
  • Emergency and day-to-day expenses, such as groceries, childcare and utilities, are the most common reasons for credit card debt.
  • Credit card debt causes Americans to hold off on important money milestones. Saving for an emergency (34 percent), investing (23 percent) and buying a vehicle (21 percent) are the most likely to be set back.

Approximately how long have you been carrying a balance on your credit card(s)?

Note: Among respondents who carry a balance on their credit card(s). Source: Bankrate surveys, June 2-4, 2025, November 13-15, 2024.

Credit Card Debt

Credit Card Stats 2025

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As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.

Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. Chapter 7 is the fastest form of consumer bankruptcy and forgives most unsecured debts like credit card debt, medical bills, and personal loans.  There are certain qualifications a consumer must meet in regard to income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm; we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Debt Relief

Consumer Debt by Gender: What’s the Difference?

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Despite attempts at financial equality, men on average earn more than women, which has an impact on personal finance. Women tend to be more cautious with money, when it comes to spending, saving, borrowing, and investing.

In contrast, men feel more social pressure to display wealth and status, going into debt, if necessary to do so.  Also feeling pressure to create financial stability as the breadwinner in their relationships.

On average, women are still responsible for the majority of household duties and child rearing responsibilities, which has a significant impact on their lifetime earning potential. Women also suffer more financial consequence from divorce.

Gender does not affect a person’s ability to manage money, build credit, use debt responsibility, or invest for the future. But external factors like societal pressures assigned to gender roles can have a financial impact.

Following decades of narrowing the gender wage gap, 2023 threw a curve ball. For the first time in 20 years, the gender pay gap widened significantly, according to the Annual Income in the United States Report from the U.S. Census Bureau.

Women who worked full-time were paid about 82.7 percent of a man’s salary in 2023, down from 84 percent in 2022. Full-time male workers made a median salary of $66,790, while full-time female workers made $55,240.  That’s a difference of $11,550 per year, a gap that only widens further for women of color, those with disabilities, and women working part-time.

Average consumer household debt in 2024

Experian compared debt balances among men and women and found that men carry more debt in all categories except student loans.

Studies also report women feeling more stressed by finances than men. A recent nationwide Bankrate study reported more than 2 in 5 women (or 46 percent) say money issues have negatively affected their mental health, prompting feelings of anxiety, depression, sleeplessness and stress. That number compares with 38 percent of men.

Click here to read more.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Consumer Debt, Credit Card Debt

Consumer Credit Card Debt Reaches an All-Time High of $1.14 Trillion

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Consumers are carrying more debt than ever before on their credit cards, according to a new report from the Federal Reserve Bank of New York. Outstanding credit card balances in the U.S. have reached $1.14 trillion.

Credit card balances grew by $27 billion over the first three months of 2024, according to the report, and are up 5.8% over last year. Delinquency rates also increased for credit card holders with 9.1% of card holders now in default on their outstanding balances.

Earlier this week, new data released by Bankrate showed that 50% of U.S. credit card users are carrying a balance on their accounts, up from 44% in January. This is a rate not seen since the early days of the pandemic.

The average credit card interest rate now stands at 24.84%, according to Lending Tree. An individual’s credit score can have a significant impact on the rates charged by card issuers. For example, an applicant with exceptionally good credit can expect an average APR of 21.41% while someone with a poor credit history will see an average APR offer of 28.28%.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.  It is not surprising with the high interest rates, unreasonable fees, harassing debt collection calls, penalties and never-ending minimum payments that don’t even seem to make a dent.

Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. Chapter 7 is the fastest form of consumer bankruptcy and forgives most unsecured debts like credit card debt, medical bills, and personal loans.  There are certain qualifications a consumer must meet in regard to income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

Please click here to read more.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.