CBS News
3 reasons to pursue credit card debt consolidation this October
Getty Images
The Federal Reserve’s first rate cut of the year was conducted last week and it reduced the benchmark rate by 50 basis points to a range of 4.75% to 5% — a cut that was twice as high as many analysts expected. That’s good news for borrowers, as the substantial rate cut could make loans more affordable, as lower rates generally ease borrowing costs. Not all debt is created equal, though, and the effects of the Fed’s rate cut won’t trickle down evenly across all types of borrowing.
For example, the rate cut might not bring immediate or even noticeable relief for those burdened by credit card debt. After all, the average interest rate on credit cards is closing in on 23%, far outpacing other types of loan rates. The Fed’s rate changes also typically have the most immediate impact on larger borrowing categories, such as home loans, with credit card APRs taking longer to adjust, if they adjust at all. So while mortgage borrowers might benefit from this rate cut soon, cardholders are unlikely to see a major reduction in their interest payments in the near future.
As a result, cardholders may want to search for other ways to better manage their high-interest debt and one option is credit card debt consolidation. By consolidating debt into a lower-interest loan, borrowers may be able to save money and simplify payments — and there are a few reasons you may want to consider this debt relief option right now in particular.
Learn how debt consolidation could benefit you here now.
3 reasons to pursue credit card debt consolidation this October
Consolidating your credit card debt could make a lot of sense this October. Here’s why:
The Fed rate cut won’t provide much relief
While the Federal Reserve’s 50 basis point rate cut may seem promising, it’s not going to help much for those already saddled with high-rate credit card debt. Credit card APRs often remain sticky, meaning they do not fall immediately or significantly following Fed rate cuts. So, waiting for relief from dropping credit card rates may not be the best plan.
But even if credit card interest rates decrease by the same 50 basis points as the Fed rate cut, it would still leave them at nearly 22.5%, which is extremely high compared to other borrowing options. When a rate is that high, a slight reduction won’t provide meaningful relief for cardholders who are struggling with compounding balances.
By comparison, personal loans, which are often used for debt consolidation, currently offer average rates of about 12.5% — and average rates on home equity loans, which can also be used for the same purpose, are even lower right now. That’s a substantial difference from the average credit card interest rate, especially for those carrying large balances. So rather than waiting for credit card rates to potentially drop by a fraction, consolidating your debt into a loan with a lower rate can offer more immediate and tangible savings.
Find out how much you could save with the right debt relief strategy now.
Debt consolidation has numerous benefits
Debt consolidation isn’t just about lowering interest rates. It can also simplify your financial life and make managing your debt far more efficient. By taking multiple high-interest credit card balances and rolling them into one lower-rate loan, you reduce the overall interest you pay over time and, in many cases, lower your monthly payment as well. This creates an opportunity to pay down debt faster and more efficiently.
For example, let’s assume you have $10,000 in credit card debt at an interest rate of 23%. Making only minimum payments would stretch out repayment for years and could cost thousands of dollars in interest. If you consolidate that debt into a personal loan with a 12.5% interest rate, you could save hundreds or even thousands in interest payments, while also having a clear timeline for when the debt will be paid off.
The longer you wait, the more expensive your debt becomes
Credit card debt will grow quickly if left unchecked. Due to compounding interest, if you’re making only minimum payments each month, you could see your balances rise, even if you aren’t making new purchases. And the longer you wait to address that high-rate credit card debt, the more difficult it becomes to climb out of the financial hole, as every extra month you carry a balance increases the amount of interest you’re paying.
By consolidating your debt now, though, you can prevent the situation from getting worse. The sooner you move high-interest credit card balances into a lower-rate loan, the less interest you’ll accrue over time. This will make it easier to manage and eliminate your debt sooner, providing not just financial relief but also peace of mind.
The bottom line
While the Federal Reserve’s recent rate cut may help some borrowers with lower-interest debts, it won’t do much for those struggling with high-rate credit card debt. And with the average credit card APR at nearly 23%, the compounding nature of this debt can quickly make it overwhelming. But debt consolidation offers an attractive solution to this problem, allowing cardholders to reduce their interest rates, lower their monthly payments and tackle their balances more effectively. The longer you wait, though, the more expensive your credit card debt will become, so taking action now is key.
NEW YORK – New York City Schools Chancellor David Banks is retiring.
Officials insisted his decision was made before federal agents raided his home and seized his phones, and that of his partner First Deputy Mayor Sheena Wright, on Sept. 4.
Banks is just the latest top leader of the Adams administration to announce their departure.
It comes just one day after Health Commissioner Dr. Ashwin Vasan announced his resignation for personal and family reasons.
In his resignation letter, Banks said he told Adams earlier this year that he planned to retire by the end of the year.
His retirement will take effect on Dec. 31.
Banks touts accomplishments, Adams praises him
“I am incredibly proud of what we have accomplished during my tenure and the opportunity to work alongside such dedicated professionals to shape the future of education in our great city is one that I will always cherish. We have faced many challenges and made significant strides in improving the educational landscape for our students, families and educators,” Banks wrote. “Together we laid the groundwork to ensure every child can read, expanded special education services and gifted & talented programs, improved school food, welcomed over 45,000 migrant students and, through a series of innovative partnerships ensured that all students will graduate on a pathway to a rewarding career and long-term economic security, equipped to be a positive force for change.”
“Serving as Chancellor has been a profound honor and a deeply fulfilling experience. Thank you for the opportunity to serve, and for your support throughout my tenure. Please know that I will do everything possible to ensure a smooth transition. I am confident that NYC Public Schools will continue to grow, innovate and excel under the next Chancellor,” he added.
“I am immensely grateful and proud of the work accomplished in New York City Public Schools under Chancellor David Banks. In less than three years, our city’s public schools have transformed — from ensuring schools were safe and open coming out of the pandemic to a space that has increased our students’ reading scores, math scores, and graduation rates,” Mayor Eric Adams said. “We’ve implemented critical initiatives like ‘NYC Reads,’ ‘NYC Solves,’ and universal dyslexia screenings, while also ensuring a seamless and timely coordination with partners to welcome, enroll, and support thousands of newly-arriving students and their families on a citywide scale. We’ve done all this and more on behalf of nearly 1 million public school students, and Chancellor Banks was crucial to getting that done every day. On behalf of all New Yorkers, we thank Chancellor Banks for his service, and wish him well in his retirement at the end of the calendar year.”
Spate of top level departures amid several federal investigations
Banks did not cite the ongoing federal investigations into the Adams administration in his departure letter. But the home he shared with Wright was raided by federal authorities earlier this month.
Last week, Adams’ chief counsel Lisa Zornberg suddenly quit. She said she couldn’t do her job effectively amid the probe.
Days earlier, former NYPD Commissioner Edward Caban resigned after federal agents raided his home. And Interim NYPD Commissioner Tom Donlon, who took over the department after Caban, said federal agents raided his home, saying they were searching for documents that were in his possession for over 20 years and were unrelated to his work as police commissioner.
Laura Kavanagh, the FDNY’s first female commissioner, announced her departure in July.
A song that sounds like it was released by Justin Bieber, with lyrics saying the singer “lost myself at a ‘Diddy’ party,” has racked up millions of views across social platforms including TikTok, X and YouTube. Researchers tell CBS News the song was likely created using artificial intelligence.
The song first surfaced across platforms in April, with one TikTok video amassing 7 million views. It recently went viral after Sean “Diddy” Combs was charged last week with sex trafficking, racketeering conspiracy and transportation to engage in prostitution. Combs has denied the charges.
Lyrics include, “Wasn’t worth all the fortune and fame” and “I was in it for a new Ferrari, but it cost me way more than my soul.” The song appears to reference allegations of sexual abuse and other misconduct at Combs’ residences.
There is no record of Bieber releasing the song and it does not appear in his catalog. Representatives for Bieber did not respond to CBS News’ request for comment. Bieber was signed by Combs’ protégé, Usher, in 2008.
Many social media users pointed out the song seems to sound like it was created with AI; others appeared to believe the song was released by Bieber. The song has been used in more than 4,500 TikTok videos alone, CBS News found.
Prince Williams/FilmMagic/Getty Images
Google Trends data shows searches for the words “Bieber” and “Diddy” together peaked from late March to early April, around the time the song began circulating on social media, and searches for the two artists peaked again when the song began recirculating in late September.
Expert opinion
CBS News ran the song through multiple AI audio detection tools; several results indicated the audio, or at least parts of it, were likely AI-generated.
In addition, Stephen Stahl, co-founder of Ai-SPY, an AI audio detection tool, told CBS News he believes the song is possibly AI-generated. Stahl said someone likely wrote the lyrics and melody, then uploaded it to a website and used a clone of Justin Bieber’s voice to create the song.
“AI is [going to] be able to help anybody create a song easily, quicker, more efficiently,” Stahl said. “The downside is that everybody will be able to create a song. So talent is no longer a prerequisite to construct a great song.”
Zohaib Ahmed, CEO and founder of Resemble AI, an AI detection company, told CBS News his company’s tool found the song is likely AI-generated.
Combs’ music catalog saw a jump in streams following his indictment, with an average 18.3% increase the week of his arrest compared to the previous week, according to industry data and analytics company Luminate.
Layla Ferris and
contributed to this report.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
NYC Schools Chancellor David Banks announces retirement weeks after feds raided his home
Viral Justin Bieber song about “‘Diddy’ party” is likely AI-generated, researchers say
MSP Airport to build ‘sensory rooms’ to alleviate travel stress
NYC Schools Chancellor David Banks announces retirement weeks after feds raided his home
Viral Justin Bieber song about “‘Diddy’ party” is likely AI-generated, researchers say