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Is your credit card maxed out? 4 options to consider
Credit card delinquencies have been on the rise, with recent data showing that delinquent credit card accounts climbed to nearly 9% in the first quarter of 2024. And, many cardholders are also facing issues with maxed-out credit cards — another sign that borrowers are grappling with financial difficulties in today’s economic climate. That makes sense considering the current challenges, which include persistent inflation that is hovering at 3.4% and credit card rates that are sitting above 21% on average.
Being delinquent on credit card payments or having maxed-out credit cards can have severe consequences, such as damage to your credit score, accumulation of fees and penalties and potential legal action from creditors. Moreover, it can create a vicious cycle of compounding debt, making it even more difficult to regain financial stability. So, if you find yourself behind on your credit card payments and your credit cards are maxed out, it is crucial to address the issue promptly to avoid further complications.
How exactly can you do that, though? Well, borrowers have quite a few options when it comes to credit card debt relief. And, if you want to settle your maxed out or delinquent credit card debt, meaning that you agree to pay less than the total balance of what you owe, there are a few strategies in particular that may be worth considering.
Don’t wait any longer. Start exploring your credit card debt relief options now.
Is your credit card maxed out? 4 options to consider
If you need to find a route to credit card debt settlement, you may want to weigh the following options:
Enroll in a debt settlement program
One option to consider is enrolling in a debt settlement program through a debt relief company or service. When you enroll in this type of program, the experts will work with the credit card companies you owe money to in order to negotiate lump-sum payments that are lower than the total amount owed. This allows you to settle your credit card debt for less than you owe on the full balance, with a portion of your full balance being “forgiven” by your lender.
While this approach may initially have a negative impact on your credit score, it can provide significant relief by reducing the overall debt burden. And, while debt settlement companies typically charge a fee for their services, the potential savings can outweigh the costs for those struggling with overwhelming debt.
It’s important to know, though, that the forgiven portion of your credit card debt is considered taxable income by the IRS. In turn, you may owe income tax on that amount once the process is complete.
Find out what debt relief options are available to help you here.
Tackle debt settlement negotiations yourself
If you prefer a more hands-on approach, or if you want to avoid the fees charged by debt relief services, you also have the option to negotiate debt settlements directly with your creditors. This process involves contacting each creditor individually and proposing a lump-sum payment that is lower than the total amount owed. If the lenders agree to the settlements, you pay the agreed-upon amount in full to settle the debt, and the rest is written off by the lender.
If you’re going to take this route, it is important to be prepared with a detailed financial overview and a compelling explanation for your circumstances. After all, credit card companies typically want to verify that you’re unable to pay the full balance of what you owe due to financial hardship, so the more documentation you can provide, the more likely you’ll be successful in your negotiations.
You’ll still owe income tax on the forgiven portion of your debt, of course, just like you would if your debts were settled through a debt settlement program. But while you may owe some extra income tax next April, and while self-negotiation can be challenging, it can save you from the fees associated with debt settlement companies and cut down on your credit card debt.
Utilize a credit card hardship program
Many credit card issuers will also offer credit card hardship programs that are designed to assist customers facing temporary financial difficulties. These programs may provide relief through measures such as reduced interest rates, waived fees or temporary payment reductions.
You should understand, though, that a hardship program will not settle your debt. It only provides temporary relief in the form of lower payments or reduced rates and fees. That said, enrolling in this type of program can still make your credit card payments more manageable and provide breathing room until your financial situation improves.
Consider bankruptcy as a last option
If your debt has become overwhelmingly burdensome and all other options have been exhausted, filing for bankruptcy may be a viable last resort. While bankruptcy should be approached with caution due to its long-lasting impact on your credit score and financial standing, it can offer a fresh start by discharging eligible debts. If you’re going to use this strategy, though, it is crucial to consult with a qualified bankruptcy attorney to understand the implications and eligibility requirements beforehand.
How to choose the right debt settlement option for you
Selecting the most suitable debt settlement option requires careful consideration of your specific circumstances. Begin by evaluating your current financial situation, including your income, expenses and the total amount of debt owed. If you’re going to take a DIY approach, you should also assess your ability to make lump-sum payments or negotiate directly with creditors. If you lack the time or negotiation skills, enrolling in a debt settlement program may be more beneficial, despite the associated fees.
And, as you weigh your options, you should also consider the potential impact each one may have on your credit score and future borrowing opportunities. While debt settlement programs and bankruptcy can have negative consequences, especially during the early part of the process, they may be necessary if your debt is overwhelming and unsustainable.
The bottom line
Navigating credit card delinquency or maxed-out credit cards can be a daunting challenge, but addressing your delinquent credit card debt promptly is crucial to regaining control over your finances and securing a brighter financial future. And, while being in credit card debt may feel overwhelming, the good news is that you have lots of potential strategies and solutions to consider. Just be sure to carefully evaluate your circumstances and explore all of your available options before making a decision.
CBS News
Former Israeli hostages released in truce 1 year ago call for action to release those still held
Former Israeli hostages who were freed from Hamas captivity during a week-long humanitarian pause in fighting exactly one year ago Sunday called for immediate action to secure a deal for the release of those still held.
The only truce in the ongoing Israel-Hamas war on Nov. 24, 2023 – fewer than two months after fighting began – led to the release of 80 Israelis held by militants in Gaza. They were freed in exchange for 240 Palestinians detained in Israeli jails.
Repeated efforts since then by mediators from Qatar, Egypt and the United States to secure another truce and hostage release have failed. Qatar early this month said it was suspending its mediation role until the warring sides show “seriousness.”
Gabriella Leimberg was kidnapped during the Oct. 7, 2023, Hamas attack and was released along with her daughter, Mia, and sister Clara.
“For 53 days, the one thing that kept me going is that we, the people of Israel, the Jewish people, sanctify life — we don’t leave anyone behind,” she said.
Leimberg added: “Everything has already been said and now action is required. We don’t have any more time.”
Around 100 hostages are still in Gaza, and at least a third are believed to be dead.
“I survived and I was fortunate to get my entire family back,” Leimberg said. “I want and demand this for all the families of the hostages.”
Hamas wants Israel to end the war and withdraw all troops from Gaza. Israel has offered only to pause its offensive.
The Palestinian death toll from the war surpassed 44,000 this week, according to Gaza’s Health Ministry, which does not distinguish between civilians and combatants in its count.
Danielle Aloni, who was kidnapped with her five-year-old daughter, Emelia, and freed after 49 days, spoke at the ceremony of the “increasing danger” those still being held face every day.
She said those still in captivity “suffer physical, sexual, and psychological abuse, their identity and dignity crushed anew each day”.
“It took the Israeli government about two months to secure a deal for me and 80 other Israeli hostages. Why is it taking over a year to reach another deal to free them from this hell?” asked Aloni, whose brother-in-law, David Cunio, and his brother, Ariel Cunio, are still being held.
She emphasized that, even though she and the other hostages gained their freedom a year ago, “we haven’t really left the tunnels,” — referring to Hamas’ underground tunnels where many of the hostages were held.
“The feeling of suffocation, the terrible humidity, the stench — these sensations still envelop us,” Aloni said.
“If people could truly understand what it means to be held in subhuman conditions in tunnels, surrounded by terrorists for 54 days — there’s no way they would allow hostages to remain there for 415 days!” said Raz Ben Ami, who was released in the deal a year ago.
Her husband, Ohad, is still among those being held.
Ben Ami called for a ceasefire to “bring back all the hostages as quickly as possible”.
CBS News
Couple charged for allegedly stealing $1 million from Lululemon in convoluted retail theft scheme
A couple from Connecticut faces charges for allegedly taking part in an intricate retail theft operation targeting the apparel company Lululemon that may have amounted to $1 million worth of stolen items, according to a criminal complaint.
The couple, Jadion Anthony Richards, 44, and Akwele Nickeisha Lawes-Richards, 45, were arrested Nov. 14 in Woodbury, Minnesota, a suburb of Minneapolis-St. Paul. Richards and Lawes-Richards have been charged with one count each of organized retail theft, which is a felony, the Ramsey County Attorney’s Office said. They are from Danbury, Connecticut.
The alleged operation impacted Lululemon stores in multiple states, including Minnesota.
“Because of the outstanding work of the Roseville Police investigators — including their new Retail Crime Unit — as well as other law enforcement agencies, these individuals accused of this massive retail theft operation have been caught,” a spokesperson for the attorney’s office said in a statement on Nov. 18. “We will do everything in our power to hold these defendants accountable and continue to work with our law enforcement partners and retail merchants to put a stop to retail theft in our community.”
Both Richards and Lawes-Richards have posted bond as of Sunday and agreed to the terms of a court-ordered conditional release, according to the county attorney. For Richards, the court had set bail at $100,000 with conditional release, including weekly check-ins, or $600,000 with unconditional release. For Lawes-Richards, bail was set at $30,000 with conditional release and weekly check-ins or $200,000 with unconditional release. They are scheduled to appear again in court Dec. 16.
Prosecutors had asked for $1 million bond to be placed on each half of the couple, the attorney’s office said.
Richards and Lawes-Richards are accused by authorities of orchestrating a convoluted retail theft scheme that dates back to at least September. Their joint arrests came one day after the couple allegedly set off store alarms while trying to leave a Lululemon in Roseville, Minnesota, and an organized retail crime investigator, identified in charging documents by the initials R.P., recognized them.
The couple were allowed to leave the Roseville store. But the investigator later told an officer who responded to the incident that Richards and Lawes-Richards were seasoned shoplifters, who apparently stole close to $5,000 worth of Lululemon items just that day and were potentially “responsible for hundreds of thousands of dollars in loss to the store across the country,” according to the complaint. That number was eventually estimated by an investigator for the brand to be even higher, with the criminal complaint placing it at as much as $1 million.
Richards and Lawes-Richards allegedly involved other individuals in their shoplifting pursuits, but none were identified by name in the complaint. Authorities said they were able to successfully pull off the thefts by distracting store employees and later committing fraudulent returns with the stolen items at different Lululemon stores.
“Between October 29, 2024 and October 30, 2024, RP documented eight theft incidents in Colorado involving Richards and Lawes-Richards and an unidentified woman,” authorities wrote in the complaint, describing an example of how the operation would allegedly unfold.
“The group worked together using specific organized retail crime tactics such as blocking and distraction of associates to commit large thefts,” the complaint said. “They selected coats and jackets and held them up as if they were looking at them in a manner that blocked the view of staff and other guests while they selected and concealed items. They removed security sensors using a tool of some sort at multiple stores.”
CBS News contacted Lululemon for comment but did not receive an immediate reply.
CBS News
Former Trump national security adviser says next couple months are “really critical” for Ukraine
Washington — Lt. Gen. H.R. McMaster, a former national security adviser to Donald Trump, said Sunday that the upcoming months will be “really critical” in determining the “next phase” of the war in Ukraine as the president-elect is expected to work to force a negotiated settlement when he enters office.
McMaster, a CBS News contributor, said on “Face the Nation with Margaret Brennan” that Russia and Ukraine are both incentivized to make “as many gains on the battlefield as they can before the new Trump administration comes in” as the two countries seek leverage in negotiations.
With an eye toward strengthening Ukraine’s standing before President-elect Donald Trump returns to office in the new year, the Biden administration agreed in recent days to provide anti-personnel land mines for use, while lifting restrictions on Ukraine’s use of U.S.-made longer range missiles to strike within Russian territory. The moves come as Ukraine marked more than 1,000 days since Russia’s invasion in February 2022.
Meanwhile, many of Trump’s key selection for top posts in his administration — Rep. Mike Waltz for national security adviser and Sens. Marco Rubio for secretary of state and JD Vance for Vice President — haven’t been supportive of providing continued assistance to Ukraine, or have advocated for a negotiated end to the war.
McMaster said the dynamic is “a real problem” and delivers a “psychological blow to the Ukrainians.”
“Ukrainians are struggling to generate the manpower that they need and to sustain their defensive efforts, and it’s important that they get the weapons they need and the training that they need, but also they have to have the confidence that they can prevail,” he said. “And any sort of messages that we might reduce our aid are quite damaging to them from a moral perspective.”
McMaster said he’s hopeful that Trump’s picks, and the president-elect himself, will “begin to see the quite obvious connections between the war in Ukraine and this axis of aggressors that are doing everything they can to tear down the existing international order.” He cited the North Korean soldiers fighting on European soil in the first major war in Europe since World War II, the efforts China is taking to “sustain Russia’s war-making machine,” and the drones and missiles Iran has provided as part of the broader picture.
“So I think what’s happened is so many people have taken such a myopic view of Ukraine, and they’ve misunderstood Putin’s intentions and how consequential the war is to our interests across the world,” McMaster said.
On Trump’s selections for top national security and defense posts, McMaster stressed the importance of the Senate’s advice and consent role in making sure “the best people are in those positions.”
McMaster outlined that based on his experience, Trump listens to advice and learns from those around him. And he argued that the nominees for director of national intelligence and defense secretary should be asked key questions like how they will “reconcile peace through strength,” and what they think “motivates, drives and constrains” Russian President Vladimir Putin.
Trump has tapped former Rep. Tulsi Gabbard to be director of national intelligence, who has been criticized for her views on Russia and other U.S. adversaries. McMaster said Sunday that Gabbard has a “fundamental misunderstanding” about what motivates Putin.
More broadly, McMaster said he “can’t understand” the Republicans who “tend to parrot Vladimir Putin’s talking points,” saying “they’ve got to disabuse themselves of this strange affection for Vladimir Putin.”
Meanwhile, when asked about Trump’s recent selection of Sebastian Gorka as senior director for counterterrorism and deputy assistant to the president, McMaster said he doesn’t think Gorka is a good person to advise the president-elect on national security. But he noted that “the president, others who are working with him, will probably determine that pretty quickly.”