Character.AI, the artificial intelligence company that has been the subject of two lawsuits alleging its chatbots inappropriately interacted with underage users, said teenagers will now have a different experience than adults when using the platform.

Character.AI users can create original chatbots or interact with existing bots. The bots, powered by large language models (LLMs), can send lifelike messages and engage in text conversations with users. 

One lawsuit, filed in October, alleges that a 14-year-old boy died by suicide after engaging in a monthslong virtual emotional and sexual relationship with a Character.AI chatbot named “Dany.” Megan Garcia told “CBS Mornings” that her son, Sewell Setzer, III, was an honor student and athlete, but began to withdraw socially and stopped playing sports as he spent more time online, speaking to multiple bots but especially fixating on “Dany.”  

“He thought by ending his life here, he would be able to go into a virtual reality or ‘her world’ as he calls it, her reality, if he left his reality with his family here,” Garcia said. 

The second lawsuit, filed by two Texas families this month, said that Character.AI chatbots are “a clear and present danger” to young people and are “actively promoting violence.” According to the lawsuit, a chatbot told a 17-year-old that murdering his parents was a “reasonable response” to screen time limits. The plaintiffs said they wanted a judge to order the platform shut down until the alleged dangers are addressed, CBS News partner BBC News reported Wednesday. 

On Thursday, Character.AI announced new safety features “designed especially with teens in mind” and said it is collaborating with teen online safety experts to design and update features. Character.AI did not immediately respond to an inquiry about how user ages will be verified.  

The safety features include modifications to the site’s LLM and improvements to detection and intervention systems, the site said in a news release Thursday. Teen users will now interact with a separate LLM, and the site hopes to “guide the model away from certain responses or interactions, reducing the likelihood of users encountering, or prompting the model to return, sensitive or suggestive content,” Character.AI said. Adult users will use a separate LLM. 

“This suite of changes results in a different experience for teens from what is available to adults – with specific safety features that place more conservative limits on responses from the model, particularly when it comes to romantic content,” it said.

Character.AI said that often, negative responses from a chatbot are caused by users prompting it “to try to elicit that kind of response.” To limit those negative responses, the site is adjusting its user input tools, and will end the conversations of users who submit content that violates the site’s terms of service and community guidelines. If the site detects “language referencing suicide or self-harm,” it will share information directing users to the National Suicide Prevention Lifeline in a pop-up. The way bots respond to negative content will also be altered for teen users, Character.AI said. 

Other new features include parental controls, which are set to be launched in the first quarter of 2025. It will be the first time the site has had parental controls, Character.AI said, and plans to “continue evolving these controls to provide parents with additional tools.” 

Users will also receive a notification after an hour-long session on the platform. Adult users will be able to customize their “time spent” notifications, Character.AI said, but users under 18 will have less control over them. The site will also display “prominent disclaimers” reminding users that the chatbot characters are not real. Disclaimers already exist on every chat, Character.AI said. 

This might be the best chance in years for homebuyers sitting on the sidelines to jump into the market. Five years ago, the pandemic sent the real estate market on a turbulent journey — one that started with a huge influx of buyers as rates fell and then slowed to a crawl as mortgage rates skyrocketed to over 8%, their highest level since 2000 in October 2023.

However, the market has taken a positive turn in recent months, which is welcome news for potential homebuyers. In September, the Federal Reserve cut interest rates for the first time in over four years, dropping the benchmark rate by 0.50% before reducing the rate again in November by 0.25%. Mortgage rates also dropped in tandem, and despite a recent uptick, mortgage rates are still nearly half a point lower than at this time last year, currently standing at 6.84%, according to Freddie Mac. The short housing supply that kept home prices high is also starting to ease. According to the National Association of Realtors (NAR), inventory has grown to about 4.3 months’ worth — the highest level in five years.

While housing market conditions have become more favorable for homebuyers, though, many are still struggling to take advantage due to heavy debt burdens, especially from high-interest credit card debt. Right now, cardholders are carrying an average of about $8,000 worth of credit card debt, and the Federal Reserve reports cardholders pay roughly 23% interest on that debt.

This scenario begs the question: Is it wise to buy a home while managing significant credit card debt? 

Start comparing today’s top mortgage rates to find the right loan for you.

Should you buy a home if you have credit card debt? Here’s what experts say

We put the question to the experts, and here’s what they shared.

Buying a home may not be good idea

One of the most important considerations for homebuyers is whether they can comfortably afford the payments, as falling behind could put their home at risk of foreclosure. If credit card payments take up much of your budget, you might think twice before buying a home.

“If you find yourself with high-interest debt, purchasing a home might not be the right financial decision,” says Christopher Stroup, a certified financial planner at Silicon Beach Financial. “Credit card debt often comes with high interest rates, which can make them difficult to pay off. By prioritizing credit card debt repayment before buying a home, you can improve your financial stability and credit score, which could help you secure better mortgage rates in the future.”

Indeed, high credit card debt could make it harder to secure an affordable mortgage and create a difficult financial situation. 

“You should pay most of your debt down. You might not be able to get the amount of mortgage you need. Your interest rate will be higher carrying debt, especially long-term debt,” Dottie Herman, vice-chair at national brokerage firm Douglas Elliman Real Estate, notes.

Learn how affordable your mortgage loan could be here.

Buying a home could still make sense

Deciding whether or not to buy a home while carrying credit card debt is a personal decision that may depend on your unique financial circumstances. If your debt is manageable and your long-term income outlook is strong, there may be a path to homeownership that allows you to make your mortgage payments while paying off debt.

“Evaluate your cash flow and create a plan,” says Sue Gardiner, owner and financial planner at South County Wealth Planning. “People are nervous when they carry debt or sometimes feel guilt over how it was acquired. And that’s ok. So, I say to clients, ‘Now we’re at this point and we just need to make a plan.’ The plan needs to have finite goals. For example, ‘I want to be consumer debt-free in 24 months.’ Then we can look at balancing a mortgage payment with debt paydown and cash flow needs.”

Always prioritize paying down debt

It’s always wise to pay off consumer debts for your overall financial health, especially if you’re preparing to purchase a home. Stroup recommends developing a repayment plan by listing all your debts, balances, interest rates and minimum payments. Then, follow a debt repayment strategy, such as the debt avalanche or debt snowball methods.

“Allocate extra funds towards your chosen repayment strategy while maintaining minimum payments on other debts,” says Stroup. “This approach requires discipline but can help you reduce your debt more efficiently and improve your credit score, making you a more attractive candidate for a mortgage.”

The bottom line

If you’re deciding whether to buy a home while carrying credit card debt, it’s helpful to identify the root cause of that debt to better understand your financial habits and whether you’re financially ready for homeownership.

“Being mindful of how the debt was acquired is important to keep in mind,” says Gardiner. “If it was due to a one-time immediate need, that’s different than accumulating due to other spending habits. Either way, being aware of your spending and saving habits will go a long way in helping you feel more control over your financial success.”