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3 ways seniors can lower their credit card debt in 2025
The end of a calendar year is always a smart time to reconsider your financial health. Unfortunately, for many Americans, the last few years have been a time of economic burden. And the numbers support this reality: Credit card debt hit a cumulative record of $1.17 trillion in the third quarter of 2024. The average American is currently saddled with around $8,000 in credit card debt alone, not accounting for other types like mortgages, student loans and auto loans. Considering that the average credit card interest rate just surged to a record 23.37%, this sort of debt can become crippling for most people.
While these figures are particularly troubling and difficult to contend with, they can be even more burdensome for seniors and retirees dependent on limited budgets to make ends meet. For these Americans, high-rate credit card debt can be the difference between living a comfortable and financially independent life – or not. And with the recent Social Security cost-of-living adjustment the lowest it’s been since 2021, there may not be many obvious ways to dig out of this financial hole without help.
Fortunately, there are some valuable and effective ways to tackle this credit card debt, many of which seniors may want to start exploring now, with an eye toward regaining their financial freedom in 2025. Below, we’ll break down three critical ones to know.
Explore the credit card debt relief options available to you here now.
3 ways seniors can lower their credit card debt in 2025
Here are three effective ways seniors can start lowering their credit card debt in 2025:
Credit card debt forgiveness
Credit card debt forgiveness can result in you having 30% to 50% of your current debt balance forgiven, significantly reducing what you owe. But you’ll need to qualify for credit card debt forgiveness to take advantage. That means having at least $7,500 in outstanding debt, proof of financial hardship, and, likely, multiple missed payments demonstrating a consistent inability to pay. Still, credit card debt forgiveness takes time to be effective, so if you qualify for this help, it makes sense to apply sooner than later.
Check your credit card debt forgiveness eligibility online today.
Balance transfer cards
Balance transfer cards do exactly what their name implies: They transfer your existing credit card balance from one or multiple cards to a single one. While, on the surface, they may not seem like a smart move, the details matter. If you have cards around that average 23% rate right now and can transfer them to one with a 0% introductory rate, it makes sense to do so.
By making this move, you can temporarily halt all the money you otherwise would have been paying toward interest and instead use it to reduce your principal balance. But these low or 0% rates don’t last forever and offers will be dependent on your financial situation and the lenders available. So if you know you want to pursue this alternative, it behooves you to start exploring your options right now, before the new year commences.
Debt consolidation loans
With a debt consolidation loan, the same basic concept applies as it does for balance transfer cards. You’ll combine your debts into one, single loan, usually with a much lower interest rate. You’ll then make your payments toward this loan instead of spreading them out among multiple credit card companies. This can save you time and money.
That said, you’ll need to qualify for this new loan type and if you’ve already damaged your credit standing with extensive debt, the loan type and rate you qualify for may not be particularly advantageous. So weigh this possibility against the other two debt relief options to better determine which one makes the most sense for your financial situation.
The bottom line
There are a variety of ways seniors can tackle their credit card debt both now and in 2025. The key, however, is simply getting started. With rates high, debt compounding, and the likelihood of credit card interest rate declines small, it makes sense to take action now. By doing so, seniors can position themselves for greater financial freedom both in 2025 and in the years that follow.
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Memphis police discriminate against Black people and use excessive force, Justice Department report finds
The Memphis Police Department uses excessive force and discriminates against Black people, according to the findings of a U.S. Department of Justice investigation launched after the beating death of Tyre Nichols after a traffic stop in 2023.
A report released Wednesday marked the conclusion of the investigation that began six months after Nichols was kicked, punched and hit with a police baton as five officers tried to arrest him after he fled a traffic stop.
The report says that “Memphis police officers regularly violate the rights of the people they are sworn to serve.”
“The people of Memphis deserve a police department and city that protects their civil and constitutional rights, garners trust and keeps them safe,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said in an emailed statement.
The city said in a letter released earlier Wednesday that it would not agree to negotiate federal oversight of its police department until it could review and challenge results of the investigation.
City officials had no immediate comment on the report but said they plan to hold a news conference Thursday after Justice Department officials hold their own news conference in Memphis on Thursday morning to address the findings.
Police video showed officers pepper spraying Nichols and hitting him with a Taser before he ran away from a traffic stop. Five officers chased down Nichols and kicked, punched and hit him with a police baton just steps from his home as he called out for his mother. The video showed the officers milling about, talking and laughing as Nichols struggled with his injuries.
Nichols died on Jan. 10, 2023, three days after the beating. The five officers — Tadarrius Bean, Demetrius Haley, Emmitt Martin, Desmond Mills Jr. and Justin Smith — were fired, charged in state court with murder, and indicted by a federal grand jury on civil rights and witness tampering charges.
Nichols was Black, as are the former officers. His death led to national protests, raised the volume on calls for police reforms in the U.S., and directed intense scrutiny towards the police department in Memphis, a majority Black city.
The report specifically mentions the Nichols case, and it addresses the police department’s practice of using traffic stops to address violent crime. The police department has encouraged officers in specialized units, task forces, and on patrol to prioritize street enforcement, and officers and community members have described this approach as “saturation,” or flooding neighborhoods with traffic stops, the report said.
“This strategy involves frequent contact with the public and gives wide discretion to officers, which requires close supervision and clear rules to direct officers’ activity,” the report said. “But MPD does not ensure that officers conduct themselves in a lawful manner.”
The report said prosecutors and judges told federal investigators that officers do not understand the constitutional limits on their authority. Officers stop and detain people without adequate justification, and they conduct invasive searches of people and cars, the report said.
“Black people in Memphis disproportionately experience these violations,” the report said. “MPD has never assessed its practices for evidence of discrimination. We found that officers treat Black people more harshly than white people who engage in similar conduct.”
The investigation found that Memphis officers resort to force likely to cause pain or injury “almost immediately in response to low-level, nonviolent offenses, even when people are not aggressive.”
The report says officers pepper sprayed, kicked and fired a Taser at an unarmed man with a mental illness who tried to take a $2 soda from a gas station. By the end of an encounter outside the gas station, at least nine police cars and 12 officers had responded to the incident, for which the man served two days in jail for theft and disorderly conduct.
In a letter to the Justice Department’s Civil Rights Division released earlier Wednesday, Memphis City Attorney Tannera George Gibson said the city had received a request from the DOJ to enter into an agreement that would require it to “negotiate a consent decree aimed at institutional police and emergency services.”
A consent decree is an agreement requiring reforms that are overseen by an independent monitor and are approved by a federal judge. The federal oversight can continue for years, and violations could result in fines paid by the city.
It remains to be seen what will happen to attempts to reach such agreements between cities and the Justice Department once President-elect Donald Trump returns to office and installs new department leadership. The Justice Department under the first Trump administration curtailed the use of consent decrees, and the Republican president-elect is expected to again radically reshape the department’s priorities around civil rights.
“Until the City has had the opportunity to review, analyze, and challenge the specific allegations that support your forthcoming findings report, the City cannot — and will not — agree to work toward or enter into a consent decree that will likely be in place for years to come and will cost the residents of Memphis hundreds of millions of dollars,” the letter said.
The officers in the Nichols case were part of a crime suppression team called the Scorpion Unit, which was disbanded after Nichols’ death. The team targeted drugs, illegal guns and violent offenders, with the goal of amassing arrest numbers, while sometimes using force against unarmed people.
Memphis police never adopted policies and procedures to direct the unit, despite alarms that it was minimally supervised, according to the Justice Department report. Some prosecutors told department investigators that there were some “outrageous” inconsistences between body camera footage and arrest reports, and if the cases went to trial, they would be “laughed out of court.” The report found that the unit’s misconduct led to dozens of criminal cases being dismissed.
In court proceedings dealing with Nichols’ death, Martin and Mills pleaded guilty to the federal charges under deals with prosecutors. The other three officers were convicted in early October of witness tampering related to the cover-up of the beating. Bean and Smith were acquitted of civil rights charges of using excessive force and being indifferent to Nichols’ serious injuries.
Haley was acquitted of violating Nichols’ civil rights causing death, but he was convicted of two lesser charges of violating his civil rights causing bodily injury. The five men face sentencing by a federal judge in the coming months.
Martin and Mills also are expected to change their not guilty pleas in state court, according to lawyers involved in the case. Bean, Haley and Smith have also pleaded not guilty to state charges of second-degree murder. A trial in the state case has been set for April 28.
Justice Department investigators have targeted other cities with similar probes in recent years, including Minneapolis after the killing of George Floyd, and Louisville, Kentucky, following an investigation prompted by the fatal police shooting of Breonna Taylor.
In its letter, the city of Memphis said the DOJ’s investigation “only took 17 months to complete, compared to an average of 2-3 years in almost every other instance, implying a rush to judgment.”
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