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1 in 5 credit cards are maxed out: 5 ways to lower your balance

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If maxed-out credit cards are causing cracks in your financial stability, it may be time to explore some strategies to lower what you owe.

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As persistent (but cooling) inflation continues to impact people’s finances and elevated interest rates continue to increase borrowing costs, a troubling reality has emerged: nearly one in five credit card users are now maxed out, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed. Credit card delinquencies are also climbing, with nearly 9% of credit card debt categorized as delinquent in the first quarter of 2024.

These statistics paint a sobering picture of the financial struggles many Americans are facing in today’s economic environment. And if these accounts are left unchecked, they can quickly spiral into a cycle of mounting interest charges and penalties, eroding your financial stability and well-being. The consequences can be far-reaching, from damaged credit scores to the looming threat of bankruptcy.

So, in this era of economic uncertainty and rising costs of living, it may be more crucial than ever for you to take proactive steps to regain control over your finances by reducing your credit card debt. Fortunately, there are several strategies that you can employ to lower your credit card balances and pave the way toward financial freedom.

Find out more about today’s best debt relief options now.

5 ways to lower your credit card balance

If you want to lower your maxed-out credit card balances and pave the way toward financial freedom, these strategies may be worth considering:

Negotiate lower settlements with your creditors

If you’re facing serious financial hardship, one effective approach to lower your credit card balances may be to negotiate directly with creditors for lower settlements. After all, creditors are often willing to accept a lower amount if it means recovering at least a portion of the debt. 

When you take this approach, you typically contact your credit card companies, explain your financial hardship and propose a lump sum payment that is less than the total balance owed. By demonstrating a genuine willingness to repay what you can and presenting documentation of your financial situation, you may be able to settle your accounts for a portion of the original balance.

Learn how the right debt relief option could help you get rid of your credit card debt.

Get a new interest rate or terms with a debt management program 

Enrolling in a debt management program through a reputable debt relief agency can also help to provide much-needed relief. These agencies work with your creditors to lower interest rates, waive fees or get new terms based on what you can reasonably afford. These reduced interest rates allow more of your payment to go toward reducing the principal balance on your cards. In turn, they can help save thousands in interest charges while providing a clear path out of debt, provided that you are diligent about paying off what you owe.

Use debt settlement to cut down on what you owe

If you’re facing insurmountable unsecured debt with no way to pay it off in a reasonable timeframe, debt settlement may be an option worth considering. This route involves hiring a debt relief company to negotiate lump sum settlement payments with each creditor for a portion of the debt owed, which can often be reduced to between 30% and 50% of the balance. 

While this process will do some damage to your credit score in the short term, debt settlement can allow you to resolve debts you could not realistically pay back in full otherwise. However, it also requires saving up a lump sum to present to creditors and dealing with collections calls and potential lawsuits until each debt is resolved.

Lower your interest costs with debt consolidation

Consolidating multiple high-interest credit card balances into a single loan with a lower interest rate can provide breathing room when your cards are maxed out. You have a few options when it comes to debt consolidation, too. For example, it could involve taking out a debt consolidation loan, using a low-interest home equity loan or transferring balances to a new card with a 0% promotional annual percentage rate (APR). By combining all outstanding balances into one monthly payment at a lower interest rate, though, you may be able to reduce your monthly costs and potentially save thousands over the payoff period.

Wipe the slate by filing for bankruptcy 

In severe cases where your debts are simply insurmountable through any other means, filing for bankruptcy may be the only path to relief. Filing Chapter 7 bankruptcy can discharge credit card balances and other unsecured debts, allowing for a fresh start, though it will severely impact your credit for several years. Chapter 13, on the other hand, involves a debt repayment plan and it protects you from facing issues with foreclosure or repossession. That said, bankruptcy has some long-lasting consequences and should typically only be considered after exhausting all other options.

The bottom line

Regardless of the strategy you choose, it is essential to approach your credit card debt repayment plan with commitment and a long-term perspective. Creating a realistic budget, cutting expenses and increasing income through a second job or side gig can free up funds to pay down balances faster. And, after you’ve gotten your credit card debt under control, it’s important to focus on developing healthy money habits, living within your means and prioritizing savings to help prevent a recurrence of crippling debt.



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Tajikistan nationals with alleged ISIS ties removed in immigration proceedings, U.S. officials say

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When federal agents arrested eight Tajikistan nationals with alleged ties to the Islamic State terror group on immigration charges back in June, U.S. officials reasoned that coordinated raids in Los Angeles, New York and Philadelphia would prove the fastest way to disrupt a potential terrorist plot in its earliest stages. Four months later, after being detained in Immigration and Customs Enforcement (ICE) facilities, three of the men have already been returned to Tajikistan and Russia, U.S. officials tell CBS News, following removals by immigration court judges. 

Four more Tajik nationals – also held in ICE detention facilities – are awaiting removal flights to Central Asia, and U.S. officials anticipate they’ll be returned in the coming few weeks. Only one of the arrested men still awaits his legal proceeding, following a medical issue, though U.S. officials speaking on the condition of anonymity to discuss the sensitive proceedings indicated that he remains detained and is likely to face a similar outcome. 

The men face no additional charges – including terrorism-related offenses – with the decision to immediately arrest and remove them through deportation proceedings, rather than orchestrate a hard-fought terrorism trial in Article III courts, born out of a pressing short-term concern about public safety. 

Soon after the eight foreign nationals crossed into the United States, the FBI learned of the potential ties to the Islamic State, CBS News previously reported. The FBI identified early-stage terrorist plotting, triggering their immediate arrests, in part, through a wiretap after the individuals had already been vetted by U.S. Customs and Border Protection, law enforcement sources confirmed to CBS News in June. 

Several months later, their removals following immigration proceedings mark a departure from the post-9/11 intelligence-sharing architecture of the U.S. government. 

Now facing a more diverse migrant population at the U.S.-Mexico border, a new effort is underway by the Department of Homeland Security, Department of Justice and the Intelligence Community to normalize the direct sharing of classified information – including some marked top-secret – with U.S. immigration judges. 

The more routine intelligence sharing with immigration judges is aimed at allowing U.S. immigration courts to more regularly incorporate derogatory information into their decisions. The endeavor has led to the creation of more safes and sensitive compartmented information facilities – also known as SCIFs – to help facilitate the sharing of classified materials. Once considered a last resort for the department, Secretary Alejandro Mayorkas has sought to use immigration tools, in recent months, to mitigate and disrupt threat activity.

The immigration raids, back in June, underscore the spate of terrorism concerns from the U.S. government this year, as national security agencies point to a system now blinking red in the aftermath of the Oct. 7 attacks by Hamas on Israel, with emerging terrorism hot spots in Central Asia. 

A joint intelligence bulletin released this month, and obtained by CBS News, warns that foreign terrorist organizations have exploited the attack nearly one year ago and its aftermath to try to recruit radicalized followers, creating media that compares the October 7 and 9/11 attacks and encouraging “lone attackers to use simple tactics like firearms, knives, Molotov cocktails, and vehicle ramming against Western targets in retaliation for deaths in Gaza.”

In May, ICE arrested an Uzbek man in Baltimore with alleged ISIS ties after he had been living inside the U.S. for more than two years, NBC News first reported. 

In the past year, Tajik nationals have engaged in foiled terrorism plots in Russia, Iran and Turkey, as well as Europe, with several Tajik men arrested following March’s deadly attack on Crocus City Hall in Moscow that left at least 133 people dead and hundreds more injured. 

The attack has been linked to ISIS-K, or the Islamic State Khorasan Province, an off-shoot of ISIS that emerged in 2015, founded by disillusioned members of Pakistani militant groups, including Taliban fighters. In August 2021, during the U.S. military withdrawal from Afghanistan, ISIS-K launched a suicide attack in Kabul, killing 13 U.S. service members and at least 170 Afghan civilians. 

In a recent change to ICE policy, the agency now recurrently vets foreign nationals arriving from Tajikistan, Uzbekistan and other Central Asian countries, detaining them while they await removal proceedings or immigration hearings.

Only 0.007% of migrant arrivals are flagged by the FBI’s watchlist, and an even smaller number of those asylum seekers are ultimately removed. But with migrants arriving at the Southwest border from conflict zones in the Eastern Hemisphere, posing potential links to extremist or terrorist groups, the White House is now exploring ways to expedite the removal of asylum seekers viewed as a possible threat to the American public. 

“Encounters with migrants from Eastern Hemisphere countries—such as China, India, Russia, and western African countries—in FY 2024 have decreased slightly from about 10 to 9 percent of overall encounters, but remain a higher proportion of encounters than before FY 2023,” according to the Homeland Threat Assessment, a public intelligence document released earlier this month. 

A senior homeland security official told reporters in a briefing Wednesday, that the U.S. is engaged in an “ongoing effort to try to make sure that we can use every bit of available information that the U.S. government has classified and unclassified, and make sure that the best possible picture about a person seeking to enter the United States is available to frontline personnel who are encountering that person.”

Approximately 139 individuals flagged by the FBI’s terror watchlist have been encountered at the U.S.‑Mexico border through July of fiscal year 2024. That number decreased from 216 during the same timeframe in 2023. CBP encountered 283 watchlisted individuals at the U.S.-Canada border through July of fiscal year 2024, down from 375 encountered during the same timeframe in 2023.

“I think one of the features of the surge in migration over recent years is that our border personnel are encountering a much more diverse and global population of individuals trying to enter the United States or seeking to enter the United States,” a senior DHS official said. “So, at some point in the past, it might have been primarily a Western Hemisphere phenomenon. Now, our border personnel encounter individuals from around the world, from all parts of the world, to include conflict zones and other areas where individuals may have links or can support ties to extremist or terrorist organizations that we have long-standing concerns about.”

In April, FBI Director Christopher Wray warned that human smuggling operations at the southern border were trafficking in people with possible connections to terror groups.

“Looking back over my career in law enforcement, I’d be hard-pressed to think of a time when so many different threats to our public safety and national security were so elevated all at once, but that is the case as I sit here today,” Wray, told Congress in June, just days before most of the Tajik men were arrested.

The expedited return of three Tajiks to Central Asia required tremendous diplomatic communication, facilitated by the State Department, U.S. officials said.  

Returns to Central Asia routinely encounter operational and diplomatic hurdles, though regular channels for removal do exist. According to agency data, in 2023, ICE deported only four migrants to Tajikistan.

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Here Comes the Sun: Ralph Macchio and more

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Here Comes the Sun: Ralph Macchio and more – CBS News


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Actor Ralph Macchio sits down with Lee Cowan to discuss the sixth and final season of “Cobra Kai.” Then, Tracy Smith visits The Broad museum in Los Angeles to learn about Mickalene Thomas’ exhibition “All About Love.” “Here Comes the Sun” is a closer look at some of the people, places and things we bring you every week on “CBS Sunday Morning.”

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The Depraved Heart Murder – CBS News

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A surgeon is accused of drugging his girlfriend in order to control her. “48 Hours” contributor Nikki Battiste reports.

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