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5 expert-driven tips for paying off $30,000 in credit card debt

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There are a few ways to pay off $30,000 (or more) in credit card debt, experts say.

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Over the last couple of years, issues with persistent inflation have sparked an increase in the price of many necessities like gas, food and housing. In turn, many households are struggling to pay for these essentials and are using credit cards to fill in the gaps. In fact, one in five credit card accounts are now maxed out.

While using a credit card can help you cover basic household expenses, this type of borrowing typically comes with high rates. For example, the average credit card rate is currently 22.63% (as of July 9, 2024) — but depending on your credit and borrower profile, your card rates could be much higher. 

As a result, paying off credit card debt can be challenging, especially if you have a significant balance, like $30,000 in card debt. With a debt that high, it could take decades to pay off what you owe due to compounding interest. But the good news is that there are several strategies you can use to pay down $30,000 in card debt, experts say. 

Need to get rid of high-rate card debt now? Explore your top debt relief options here.

5 expert-driven tips for paying off $30,000 in credit card debt

Here are some expert-driven strategies that may help you pay off $30,000 in credit card debt.

Choose a debt repayment strategy

If you have extra funds to pay more than the minimum amount on your credit cards, consider using debt repayment strategies like the debt avalanche or snowball methods. 

The debt avalanche method involves focusing on making additional payments on your card with the highest interest rate first while making minimum payments on your other balances.

With the debt snowball method, you focus on making extra payments on your credit card with the smallest balance while making minimum payments on your other cards. 

“Mathematically the debt avalanche method is better [because you can save the most on interest],” says Edward Zhexu Ai, assistant professor of finance at Wagner College. 

Realistically, though, people need more motivation to cut their expenses consistently to pay off debts, Ai says. So, if quick wins will motivate you to continue paying down debt, the debt snowball method may be the best solution for you.

Find out more about what your debt relief options are today.

Tap your home’s equity

If you’re a homeowner, tapping your home’s equity via a home equity loan or home equity line of credit (HELOC) and using the funds to pay down some or all of your $30,000 in credit card debt could be a viable option, experts say.

For example, if you have good credit and you are financially stable, Ai says he would recommend using a home equity loan. You can typically get a lower interest rate with these loans [than credit cards] because you’re using your house as collateral.

However, one of the major risks is that home equity loans and HELOCs use your home as collateral. So, if you can’t repay the home equity loan as promised, the lender can foreclose on your home.

Take out a debt consolidation loan

Another debt relief option that can help you pay down $30,000 is taking out a debt consolidation loan, which is a type of loan that is used to pay off your debts, including credit cards. The main benefit of debt consolidation loans is that they typically offer lower average rates than your credit cards, reducing the amount owed in interest. And, by rolling multiple credit card balances into one loan, you can also streamline your payments.

You can typically get a loan for debt consolidation through a bank, online lender or credit union. In addition, many debt relief companies offer debt consolidation loans through partner lenders.

This option can be smart to consider, Ai says, if your credit score is good enough to get a favorable interest rate on the new loan.

Utilize credit card debt settlement 

Many debt relief companies offer credit card debt settlement, also known as credit card debt forgiveness, as a service to those they work with. With this option, the debt relief company negotiates with your creditors to try and secure an agreement for a lump-sum settlement for less than you owe.

If successful, these negotiations can result in paying a lot less in total for your credit card debt. But while debt settlement may help you substantially reduce your debt, it does come with some downsides. 

For example, a debt settlement can leave a negative mark on your credit report — and it’s often worse than bankruptcy, says Glenn Downing, CFP at investment firm CameronDowning. As a result, his firm doesn’t recommend taking this route to get out of credit card debt.

Another downside is that there are often tax implications tied to credit card debt forgiveness. 

“The forgiven amount would be considered taxable income. So having credit card debt forgiven could lead to a higher tax bill,” says Ai.

Use a balance transfer credit card

Another option is to transfer some or all of your credit card debt to a balance transfer credit card. If you can qualify for the right balance transfer card, you could save thousands of dollars in interest. After all, some credit card issuers have 0% promotional APR periods as long as 21 months — allowing you to aggressively pay down your balance without additional interest.

According to Francisco Ayala, CFA and CFP at The Coleridge Group, a financial planning company, this is often the best way to reduce your interest costs. That said, this option does have some potential downsides. 

For example, credit card issuers typically charge a balance transfer fee that ranges from 3% to 5% of the transferred amount. So, if you transferred $15,000 of your credit card debt to another card, you might pay a balance transfer fee ranging from $450 to $750, depending on the fee the card charges.

Another drawback is that once the promotional window closes, you’ll have to pay any remaining balance at the card’s standard rate, which is often high. So, if you’re going to take this route, it’s important to have a plan in place to pay off what you owe before the promotional period ends.

The bottom line

Paying off $30,000 in credit card debt is no easy feat, especially in today’s economic environment. But there are options to achieve debt relief. For example, you could consolidate debt on your own with a home equity loan or personal loan. Or, if you’re having trouble making minimum payments on your cards, it might make sense to seek help from a debt relief company.

Whatever strategy you use to pay down credit card debt, it’s crucial to review your finances to determine what got you into debt in the first place. If the reason was bad spending habits or a lack of income, you’ll need to modify your behavior or find ways to boost your income. If the behavior isn’t modified and cash flows aren’t improved, consolidation loans, balance transfers and other debt relief options are temporary bandages that are going to fall off at some point, Edward Silversmith, CFP at financial planning firm Wealth Enhancement Group, says.



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Whooping cough wave now worst in almost a decade amid back-to-school surge

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South Jersey family shares scary experience with whooping cough


South Jersey family shares scary experience with whooping cough

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This year’s resurgence of whooping cough cases has now accelerated to the fastest pace on record in nearly a decade, according to figures published Thursday by the Centers for Disease Control and Prevention, as pertussis infections are now again climbing around the country during the back-to-school season.

A total of 291 cases were reported for the week ending on Sept. 14, the CDC says. New York has reported the most cases this week of any state, with 44 infections. Ohio, Pennsylvania and Oklahoma have also reported at least 38 cases each.

This now marks the most infections of the bacteria Bordatella pertussis reported to the CDC in a single week since 2015, when the country was coming off a resurgence of whooping cough cases that had peaked the year before.

Whooping cough disease, caused by the pertussis bacteria, typically starts around a week after people are first exposed to another contagious person. Symptoms can last for weeks to months, typically with the disease’s infamous “whooping” as patients struggle to breathe after facing a burst of coughs.

So far this year, 14,569 cases have been reported to the agency, more than four times higher than the number of infections reported by this time last year. 

Cases are also higher than the more than 10,000 cases that were reported by this time in 2019, before COVID-19 pandemic measures also caused plummeting cases of pertussis and other infections that spread through the air.

The need for better whooping cough vaccines

While unvaccinated young children and newborns delivered by unvaccinated moms remain at the highest risk of infection and severe disease from whooping cough, federal health officials have warned for months that the U.S. was likely to see a resurgence of breakthrough infections in older children and adults.

Pertussis cases have largely grown over the past few decades, after the U.S. and other high-income countries switched to pertussis vaccines after the 1970s that triggered fewer side effects but also are less effective at guarding against disease and spread.

Officials in Pennsylvania, which has seen one of the country’s largest pertussis outbreaks this year, say that many outbreaks have been fueled by high school students.

“Cases and outbreaks have continued throughout the summer even though most schools were closed,” the department said in an alert to doctors in the state this month, urging doctors to prepare for the possibility of a “continued increase” as schools resumed.

In New York, 40% of their cases this year outside of New York City have been in teens ages 15 to 19 years old, according to figures the state’s health department shared with CBS News. 

“[W]e are not seeing evidence of a specific cluster or location or event. Cases have been identified all over the state and among children and adolescents in various settings,” a spokesperson for the New York State Department of Health said.

In Oklahoma, which has seen one of the steepest increases in cases of any state over recent weeks, cases have been seen in people as old as 86 years old. The median age of cases is 9 years old, the health department said.

“Since Jan. 1, 2024, there have been 162 cases of whooping cough in Oklahoma, which is the highest number of cases since 2017 when 207 cases were reported,” Erica Rankin-Riley, a spokesperson for the Oklahoma State Department of Health, told CBS News.

Talks on new trials

The resurgence comes as the Food and Drug Administration is now weighing the prospect of human challenge trials – studies intentionally infecting vaccinated volunteers with the bacteria – in the hopes of accelerating the development of more effective shots to fend off the bacteria.

A panel of the FDA’s advisers are scheduled to meet Friday to discuss the trials, which could lead to vetting “new pertussis vaccines for booster vaccination of adults.”

The CDC currently recommends a number of pertussis shots for children and adults, including boosters of the Tdap vaccine – which contains antigens designed to protect against pertussis – for all adults every 10 years. 

Around 39% of adults have gotten a pertussis booster in the last 10 years, CDC survey data from 2022 suggests.

Other factors may also be contributing to rising cases, the FDA said, like mutations in circulating pertussis strains and the “rapid waning” of immunity.

The current generation of “acellular pertussis” vaccines are still believed to “provide a significant public health benefit by preventing disease,” the FDA said in briefing documents published ahead of the meeting.

“Despite the resurgence of pertussis, current rates of disease are very low relative to the rates reported during the pre-vaccine era,” agency officials wrote.



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These major employers are making workers return to the office

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Amazon sent shockwaves through its ranks — and corporate America — Monday when CEO Andrew Jassy told workers they will be expected to report to the office five days a week starting in January. 

The decision represents one of the most stringent return to office policies from a major corporation since the pandemic, when offices were suddenly shuttered and many employees shifted to remote work. Amazon’s move is also unusual for a business in the tech industry, which has largely embraced remote and hybrid work arrangements. 

Under the company’s current mandate, Amazon workers have been reporting to their physical offices three days a week, although that will expire by the beginning of next year. While advocates of in-office work argue that showing up in person helps foster collaboration and feelings of connectedness, skeptics say Amazon could be imposing the mandate to reduce headcount, as some employees may search for more flexible jobs and depart, without having to lay off workers. 

For his part, Jassy said the move is designed to improve company culture. But Amazon workers are reportedly grousing on internal forums about the move. 

Amazon isn’t alone in reining in remote work. Here are a few of the major employers that have summoned workers back to the office. 

Amazon

CEO Andrew Jassy said the back-to-the-office decision is based on his observation that collaborating and brainstorming work better when people are together in the office.

To foster a culture of collaboration, “we’ve decided that we’re going to return to being in the office the way we were before the onset of COVID,” Jassy said in a memo to employees posted on Amazon’s website. “When we look back over the last five years, we continue to believe that the advantages of being together in the office are significant.”

Disney 

Disney mandates that employees work in the office four days a week, typically Monday to Thursday. 

“[I]n a creative business like ours, nothing can replace the ability to connect, observe and create with peers that comes from being physically together, nor the opportunity to grow professionally by learning from leaders and mentors,” CEO Bob Iger said in a 2023 memo to employees. 

JPMorgan

JPMorgan CEO Jamie Dimon is a staunch advocate of in-person work, and once blasted remote work as a policy that “does not work for younger people. It doesn’t work for those who want to hustle,” he said at a business forum. He was among the first leaders to summon employees back to the workplace. 

As of April 2023, workers have been reporting to JPMorgan offices at least three times a week. The company is reportedly tracking attendance, too. 

Starbucks

While the coffee giant’s new CEO Brian Niccol will commute to Starbucks’ Seattle headquarters from his Newport Beach, California residence, most other workers likely live in closer proximity to their offices, given that they must be at their desks three days a week. 

Niccol is not exempt from following the mandate, according to the company. 

X owner Elon Musk has consistently opposed remote work, saying he believes workers are more productive when working from a corporate office. 

In 2022, he said all X workers would be expected to report to the office on a full-time basis, and that he would interpret a failure to show up as a resignation from the company. 

Zoom

Even pandemic icon Zoom, one of the companies that benefitted the most from remote work, last summer told workers who live near a company office to report to their desks at least two times a week, a company spokesperson told CBS MoneyWatch. 

The mandate applies to its roughly 7,400 workers who live near a Zoom office, the videoconferencing platform said at the time. 



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White House hasn’t weighed in on Iran hacking Trump campaign

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White House hasn’t weighed in on Iran hacking Trump campaign – CBS News


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The White House has not weighed in on reports of Iran hacking the Trump campaign for sensitive information that apparently was offered to President Biden’s campaign in the summer. CBS News senior White House and political correspondent Ed O’Keefe reports.

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