In the final weeks of the year, many Americans may find themselves doing a retrospective look at their economic health with an eye toward what can be improved in 2025. A variety of economic factors affected Americans this year, ranging from a significant drop in inflation to multiple interest rate cuts to multiple record-breaking days on the stock market. And while these elements, on the surface, are all positive, it will still take some time to recuperate from the inflationary period of recent years. And this will require smart decision-making, particularly for seniors with a limited budget.

This will extend to a review of their insurance protections, both what they require and what they may be able to comfortably eliminate or reduce coverage on. For many, a long-term care insurance plan could be worthwhile. This unique policy can cover costs associated with nursing homes, assisted living facilities and in-home caretakers, among other features. But the timing surrounding an application is critical to get right. And in the final weeks of the year, there’s a compelling case to be made for applying for long-term care insurance now, before 2025. Below, we’ll explain why.

Start exploring your top long-term care insurance options here.

Why seniors should apply for long-term care insurance before 2025

Are you a senior considering a long-term care plan now? Or are you exploring the benefits for a family member or loved one? Here are three reasons why it’s worth applying for before January 1, 2025:

Premiums will rise

Long-term care insurance works similarly to other traditional insurance policies in the sense that it becomes more expensive the older you are. So if you wait for a new calendar year to apply, you’re likely to spend more for a policy than you would have if you started the paperwork in November or December. This is why applicants in their 50s and 60s often secure lower premiums than those in their 70s (among other factors). Waiting for an ideal time to apply, then, could cost you more than you had anticipated (or can afford to budget for). Consider acting promptly, instead.

See what a long-term care insurance policy could cost you now.

Care will become more expensive

The costs of nursing homes and assisted living facilities are only expected to increase over time, underlining the importance of securing a robust insurance plan now, in advance of that rise. According to Genworth’s Cost of Care survey, the monthly median price of a home health aide in 2024 is $6,481 while an assisted living facility is $5,511 while a nursing home with a private room starts at $10,025. Those costs are all predicted to rise in 2025 to $6,675, $5,676, and $10,326, respectively. It makes sense, then, to start exploring insurance options now before the costs of these services become unmanageable.

Unforeseen economic factors could impact your ability to pay for help

You may feel that you have the economic means to pay for this care in the future, rendering a long-term care insurance policy ineffective. But as has been seen in recent years, unforeseen economic factors could impact your ability to pay for help, potentially even in the final weeks of the year. 

Inflation rose in October, after all, and if it rises again in November the interest rate cuts once predicted with high certainty for December could be paused – or rates could even rise. This will make everyday borrowing more expensive, reducing your budget to pay for items that a long-term care insurance policy can help cover. So weigh these unknowns carefully versus the benefits of simply locking in protection right now.

The bottom line

The benefits of a long-term care insurance policy are substantial. To make a plan truly cost-effective seniors should time their application carefully. For many, this may mean acting before 2025 to get ahead of policy cost increases. As with all insurance policies, however, it’s critical to weigh the costs versus the benefits to determine the true value, particularly in today’s evolving economic climate. So start by speaking with a long-term care provider who can answer your questions.

Learn more here now.

If you aren’t paying off your balance in full each month, it’s easy for your credit card debt to grow and become a crushing burden, especially in today’s economic climate. Not only are Americans racking up a record amount of credit card debt right now — the total is sitting at $1.17 trillion currently, up from $1.14 trillion in the second quarter of the year — but today’s high credit card rates can result in hefty interest charges that make it tough to pay down any balance you’re carrying from one month to the next. 

As interest accumulates on your revolving credit card balances, you may be looking for solutions to tackle what you owe. There are lots of debt relief strategies you can consider, but one option that may seem particularly appealing is dipping into your retirement savings through a 401(k) hardship loan. After all, a 401(k) account is a sizable asset that’s already yours, and borrowing from it may seem like an easy way to regain financial stability.

However, tapping into a 401(k) for any purpose is a significant decision, one that can have long-term consequences. So before pursuing this option, it’s essential to understand whether a 401(k) loan can be used to pay off your credit card debt, and if so, whether it’s truly the best solution to do so.

Tackle your credit card debt now with the help of a debt relief expert.

Can you use a 401(k) hardship loan to pay off credit card debt?

It is possible to use a 401(k) loan to pay off credit card debt. Most 401(k) plans allow participants to borrow a portion of their account balance, and the loans are then repaid with interest over a set period. Since you’re borrowing your own money, the interest you pay goes back into your account, which can make this option seem attractive compared to high-rate credit card debt.

However, that doesn’t mean you can use a 401(k) hardship loan, which is a specific type of 401(k) loan, to do so. There are strict rules governing 401(k) hardship loans, and they are generally meant for urgent financial needs. Using the loan to pay off credit card debt may not meet the hardship criteria set by some plan administrators, as hardship withdrawals are generally restricted to specific circumstances defined by the IRS, including:

• Medical expenses
• Costs related to purchasing a primary residence
• Tuition and educational fees
• Expenses to prevent eviction or foreclosure
• Funeral expenses
• Certain expenses for repairing damage to your primary residence

But while paying off your credit card debt with a hardship loan may not be allowed, you do have another option: taking out a regular 401(k) loan to pay off your credit card debt. These loans allow you to borrow up to 50% of your vested account balance or $50,000, whichever is less, for nearly any purpose. The loan must be repaid within a certain number of years through payroll deductions, and interest rates are typically prime rate plus 1%.

It’s important to note, though, that using a 401(k) loan for debt repayment can derail your retirement savings. When you do this, the money you withdraw is no longer earning compound interest, which can significantly impact your nest egg over time. So while paying off credit card debt is important, it’s crucial to weigh the short-term relief against the long-term consequences of borrowing from your retirement funds.

Find out what other credit card debt relief options are available to you.

What are the alternatives to using a 401(k) loan for credit card debt?

If using a 401(k) loan to pay off your debt feels risky, you may want to consider exploring other, more sustainable options. Here are some of the most effective strategies include:

Debt consolidation loans

A debt consolidation loan from a bank or credit union allows you to combine multiple credit card balances into one manageable loan with a lower interest rate. This approach simplifies your payments and can save you money in interest over time. 

Balance transfer credit cards

If you have a solid credit score, using a balance transfer credit card to cut down on interest could be a smart move. These cards typically offer a 0% introductory APR for a set period (usually 12–21 months), allowing you to pay off your debt without accruing additional interest. 

Debt settlement

Debt settlement (also known as debt forgiveness) involves negotiating with creditors to settle your debt for less than the full amount owed. This can be an effective way to reduce your debt burden, and with the right strategy, you could reduce your credit card debt by 30% to 50% on average. However, the settlement process can hurt your credit score, so it’s typically a last resort for those facing significant financial hardship.

The bottom line

While a regular 401(k) loan can technically be used to pay off credit card debt, you can’t typically use a 401(k) hardship loan for these purposes. But either way, borrowing from your retirement fund to pay off credit card debt is a high-stakes decision with significant risks to your financial future. In many cases, the immediate relief may not outweigh the long-term consequences. So, you may want to consider alternative options instead, many of which can offer more manageable ways to eliminate credit card debt. 

CITY HALL — The city spent $22.6 million on police overtime for special events this year but has only been reimbursed $2 million, leaving taxpayers to cover the remaining costs.

City law requires special event producers to pay for police services beyond 12 shifts. However, an investigation by Block Club Chicago and CBS Chicago revealed through records requests that the city has not been retroactively charging for those costs.

Chicago hosts hundreds of street festivals each year, with approximately 1,300 events held between 2021 and 2023. During that period, nearly 2,800 Chicago police officers logged a combined total of 27,000 overtime hours to patrol these events, according to a CBS News Data Team analysis of police overtime records and special event permits.

At a Chicago Police budget hearing on Friday, officials confirmed that a significant portion of the overtime associated with special events has gone unreimbursed, attributing the issue to a “decentralized system.”

In 2024, the police department spent $22.6 million on special event overtime across various music, street, and neighborhood festivals. About $7.2 million of that is attributed to ticketed events like Lollapalooza, the Chicago Marathon, and NASCAR. However, the city has only been reimbursed for Lollapalooza and the Chase Corporate Challenge, totaling just under $2 million, police officials disclosed on Friday.

The 2024 figures are an increase from 2023, which saw $19.2 million spent in police overtime across all special events, police officials said. It’s currently unknown how much of that was reimbursed to the department. Special events include large ticketed festivals, street festivals, athletic events and bar crawls. Chicago hosted 677 special events in 2023, according to records obtained by CBS Chicago. 

The revelation aligns with months of unanswered public records requests directed at the Department of Finance, which has been unable to produce invoices for police overtime at street festivals.

While the department did provide invoice data for traffic control aides at events like Riot Fest, Lollapalooza, and several 5Ks, it referred CBS News to the city’s Public Safety Administration for police overtime. However, the Public Safety Administration has not responded to records requests for police overtime details and did not return requests for comment.

“What may make more sense is we can provide all of our historical data about what our costs are, and we can provide that to DCASE, we can provide that to the Department of Finance. We can give a unified city service quote at the front end,” said Ryan Fitzsimons, Deputy Director at the Chicago Police Department.

During a budget hearing for the Department of Cultural Affairs and Special Events last week, officials revealed that their department is not involved in the invoicing process for reimbursing police overtime, raising concerns among aldermen that permits are being issued to event producers with outstanding balances.

On Friday, police officials said that despite the lack of reimbursement, they do not have the authority to block special event permits unless there are safety concerns. This lack of enforcement power leads to ongoing accountability issues with invoicing, they noted.

“We conduct numerous after-action meetings with OEMC and other city agencies. The problem is that, while we identify these reimbursement issues during those meetings, they are not addressed in subsequent permits issued the following year,” said Chief Duane DeVries, head of the Bureau of Counterterrorism with the Chicago Police Department.

After each permitted special event, the Chicago Police Department generates an “event evaluation form” that tracks the number of incidents and officers assigned to the event.

On Friday several aldermen requested event evaluation forms for various Chicago’s special events.

In July, the CBS News Data Team and Block Club Chicago requested event evaluation data for various events from 2019 to 2024, including PrideFest, Market Days, Wicker Park Fest, and Lollapalooza. The department said the evaluations were kept on paper. A request for those documents was made in August. As of last week, the department is still working on that request. 

All special event producers are required to present security plans to Chicago Police for feedback before the city’s events department issues a permit. The amount of private security is determined by various factors, including the event’s history, location, current events and crime trends. Event organizers suggest a security plan and the police department approves, denies and makes suggestions.

Because of this, some special event producers have argued that they should not be required to pay for police overtime. 

“It’s like someone coming and painting your house and then saying, ‘I want you to pay for it.’ … Well, I didn’t want you to paint my house,” Hank Zemola, CEO of Special Events Management, previously said. “I ordered all this (security) so we wouldn’t have to do that.”

Special Events Management puts on numerous special events including street races and neighborhood street festivals. The company organizes some of the city’s most popular street festivals like Pridefest, Ribfest and others.

By city law, street festivals cannot charge an entry fee but can propose suggested donations for entry. With suggested donations in decline, inflation making festivals more expensive to produce and consumers spending less, Zemola estimates that at least 50% of the company’s events this year lost money.

Still, with the City Council looking for cost-saving measures aldermen are eager to close the loophole that is hemorrhaging money from this city.

“I hope that with the information … your department provides us, we can, from the council side, work on maybe a better process that gives you guys … a seat at the table … so that we can better manage and join our resources,” said Ald. Maria Hadden (49th).

This story was produced under a collaboration with Block Club Chicago, a nonprofit newsroom focused on Chicago’s neighborhoods, and CBS News Chicago. Melody Mercado contributed to this report.