CBS News
6 ways to manage credit card debt while unemployed
Getty Images
As more Americans struggle to make ends meet in today’s unusual economic climate, credit card delinquencies are on the rise and maxed-out credit card accounts are a relatively common issue — especially for members of certain generations. And, that uptick in card delinquencies can be attributed, at least in part, to the elevated interest rate environment, which has caused credit card rates to hover above 21% on average.
Further compounding the situation are factors like persistently high inflation, which has pushed up the cost of everything from gas and groceries to housing and put immense pressure on many household budgets. As the cost of living continues to rise, many cardholders find themselves struggling to make ends meet, leaving little room for credit card payments.
But when an issue like unemployment enters the equation, the challenges of managing credit card debt can become even more daunting. Without a steady income stream, cardholders may find themselves grappling with difficult choices and potentially falling behind on their financial obligations. If you’re one of them, there may be strategies you can use to better handle your credit card debt while unemployed. Below, we’ll break down what you should know.
Learn more about the debt relief options available to you now.
6 ways to manage credit card debt while unemployed
If you’re currently unemployed and need help with your credit card debt, the following options may be worth considering.
Inquire about credit card hardship programs
Before you consider other routes, you may want to make some calls to your credit card issuers to find out what options they have for cardholders who are facing financial hardships. For example, many credit card issuers will offer credit card hardship programs that are designed to provide temporary relief to cardholders who are temporarily dealing with job losses, serious medical issues or other types of financial difficulties.
The benefit of utilizing these programs is that they may result in reduced interest rates, waived fees or even deferred payments for a specified period. And, you typically don’t have to pay anything extra to enroll in them. You’ll simply need to openly communicate with your credit card companies, explain your financial situation and provide documentation (in certain cases) to get some relief.
Find out more about how the right debt relief program could help you today.
Enroll in a debt consolidation program
Another option is to enroll in a debt consolidation program to roll all of your credit card debts into one monthly payment at a lower rate. Debt relief companies offer these types of programs, and when you enroll in one, you typically borrow a lump sum from one of the company’s partner lenders. That money is used to pay off your credit card balances, and you make monthly payments to the debt relief company to repay the loan.
While any type of monthly payment obligation can be stressful when you’re unemployed, taking advantage of the lower interest rates these loan programs offer, and, in turn, the lower monthly payments, could mean the difference between affording your monthly debt obligations or not. After all, a reduction of even $50 per month in interest charges could make it a lot easier to manage your debt payments on a tighter budget.
Utilize a debt management plan
You may also want to consider the benefits a debt management program can offer you if you’re in between jobs. With this type of program, the goal is to negotiate with your creditors to negotiate lower interest rates and waive certain fees, providing you some relief from the high interest charges or extra costs.
In turn, a debt management program can help you regain control of your finances and pay off debt more efficiently. And, in most cases, they’ll work to try and fit your new monthly payments into your budget, which can make it easier to stay on top of your credit card payment obligations while your income is lower than normal.
Weigh the benefits of a debt settlement program
Debt relief companies also typically offer debt settlement, or debt forgiveness, programs to those who are facing financial hardships. The goal of these programs is to negotiate with your creditors to reduce the total balance of your credit card debt. If successful, the credit card companies will “forgive” a portion of what you owe in total.
When you enroll in a debt settlement program, you’ll make payments to the debt relief company based on what you can afford to pay each month. That money is held in a special account until enough has accrued to begin the negotiations. If negotiations are successful, a lump-sum payment will be made from the money in that account to settle the debt.
This option can be more risky than the others outlined above and can potentially damage your credit score, but it can also result in more relief than some of your other choices. In turn, the benefits and possible downsides should be considered thoroughly before enrolling.
Seek assistance from nonprofit organizations
There are also nonprofit organizations that offer financial counseling and guidance for those struggling with debt, and utilizing what these organizations offer can be a smart way to better manage your debt obligations during periods of unemployment. After all, these resources can provide valuable insights and strategies for navigating credit card debt based on your unique circumstances, so don’t discount the help and guidance that a nonprofit organization can offer you in this situation.
The bottom line
It’s important to note that while these strategies can provide relief from the weight of high credit card payments during periods of unemployment, they may also have implications for your credit score and overall financial health. That’s why it’s important to fully weigh each option and determine what makes the most sense for your circumstances.
The number of people killed and/or wounded in shootings over the Fourth of July week in the U.S. dipped this year, making it the fourth year in a row gun violence around July 4 has dropped, according to a tally by the Gun Violence Archive.
From July 1 to July 7, 340 people were killed and 756 were wounded for a total of 1,096 shooting victims across the U.S., according to the Gun Violence Archive. In 2023, the week of July 4 in the U.S. saw 451 people shot and killed and another 1,130 wounded. These numbers exclude those who died by suicide.
The archive also recorded 20 mass shootings —which it defines as a shooting in which four or more people are shot and/or killed, not including the shooter— over Fourth of July week this year. That was down from 28 a year ago.
Chicago, which saw a spike in gun violence this year, had the most shootings and deaths over the 2024 holiday, with more than 100 shot and 19 killed since Wednesday, according to the Chicago Police Department. That was a 91% increase in shooting victims compared with last year.
In 2022, the Illinois suburb of Highland Park was the site of a devastating mass shooting in which seven people were killed and dozens more were wounded when a gunman opened fire on the city’s Fourth of July parade. That parade returned this year for the first time since the shooting.
Gun violence in Chicago made Illinois have the most individual shooting incidents of any state over the holiday week this year. California also saw a fairly high number of shooting incidents this year, which is unsurprising given that it is the nation’s most populous state.
The number of shooting victims over the Fourth of July week has been dropping every year since 2020, but they still remain above 2019 levels. That year, there were 1,177 total victims, with 318 deaths and another 859 people wounded. The numbers then spiked in 2020, when 536 people were killed and 1,172 were wounded, for a total of 1,708 gunshot victims.
The Gun Violence Archive also recorded 34 mass shootings in 2020, the highest number over the last six years and a leap up from 18 in 2019.
The U.S. has also seen a slight dip in gun violence overall in the first half of 2024 compared with last year. From Jan. 1 through June 30 of last year, 9,683 people were killed and 18,630 people were wounded in shootings. Over that same period this year, 8,539 were killed with another 16,192 were wounded.
— Erin Cauchi and Anna Schechter contributed reporting.
CBS News
The best Apple AirPods deals ahead of Prime Day 2024 offer great audio at record low prices
Apple
When it comes to headphones, Apple AirPods are massively popular. These crowd-pleasing earbuds pair easily with Apple devices (like your iPhone) and sound great, too. If you’re ready to see what all the fuss is about, you can save some serious cash on each model of the customer-loved earbuds right now, thanks to some must-see early Amazon Prime Day deals.
The second-generation AirPods Pro are Apple’s premium earbuds, with excellent noise cancellation, spatial audio, and waterproofing that makes them ideal candidates for wearing at the gym. There are also the more affordable AirPods that are great for casual listening. For Apple users wanting high-end over-ear headphones, AirPods Max are great for immersive sound.
Not sure which type of AirPods will work best for you? Be sure to check out our in-depth AirPods buyer’s guide for all the info you need to make a purchasing decision before these pre-Prime Day deals go away.
Apple AirPods Pro 2nd Generation: $169 ($80 off)
Apple
With up to 30 hours of battery life via their charging case, the sleek Apple AirPods Pro 2nd Generation wireless earbuds deliver exceptional listening time.
These upgraded earbuds surpass the original AirPods Pro in every way. An improved wireless chip and enhanced active noise cancellation give you an immersive listening experience, and their attractive curves make them even more pleasing to the eye.
For anyone who appreciates lengthy battery life and the very best sound quality, these are a fantastic choice. With all the upgrades over the previous model, the AirPods Pro 2nd Generation represent Apple’s most advanced earbuds yet.
This version of the AirPods now comes with a USB Type-C charging case that also supports wireless charging. Another feature we love: the touch controls built into the stems.
Regularly $249, you can score Apple AirPods Pro 2 for $169 at the Walmart Deals sale or at Amazon as an early Prime Day deal.
Apple AirPods (2nd Generation): $69 ($60 off)
Apple
Though not the newest model, the second-generation Apple AirPods are still a popular choice when it comes to earbuds. Keep in mind, these are not the Pro model, but they’re still worth grabbing.
For Apple users, these are the most seamless earbuds around. They connect effortlessly whenever you need them. While they work with any Bluetooth device that generates audio, they function at their best when they’re paired with an Apple device, such as an iPhone, iPad, Apple Watch, iMac or MacBook.
With a wireless charging case providing more than 24 hours of battery life, one-tap setup for Apple devices, and a low-latency wireless connection for immersive entertainment, it’s easy to see why these earbuds are a hit and continue to sell out.
If you want an affordable option with broad appeal, this version of the AirPods make an excellent everyday wireless earbud option.
Right now, you can grab a pair of AirPods (2nd Generation) for just $69, one of the lowest prices we’ve seen.
Apple AirPods (3rd generation): $129 ($74 off)
Apple
If you don’t need the fanciest AirPods, but still want something new, check out the third generation of the original AirPods. These are perfect for staying current and for everyday use — without breaking the bank.
These AirPods come packed with features like spatial audio, dynamic head tracking and longer battery life. You can get about 30 hours with the included MagSafe charging case. They’re not as advanced at the AirPods Pro 2nd Generation, but they generate really impressive audio.
These AirPods still receive regular Apple updates, so you’ll still get most of the new goodies the other newer models get.
Apple AirPods Max (Pink): $450 ($99 off)
Amazon
If you want to indulge in a luxurious pair of premium quality headphones and you’re already an Apple user, look no further than the AirPods Max. These headphones look just as good as they sound. And in our coverage of the 11 best spatial audio headphones and earbuds for 2024, these were a top pick.
With lavish cushioned ear cups, booming audio, spatial audio with dynamic head tracking, and absolutely fantastic active noise cancellation, the AirPods Max make a bold statement. Everyone will know what you’re wearing — and they’ll probably be jealous, because these things absolutely bump.
Plus, transparency mode lets you tune into your surroundings when needed. And at 15 hours of playtime, these headphones keep your music flowing all day. Beyond performance, the AirPods Max make a fashion statement with a range of stylish color options.
These are the perfect option for anyone looking for a pair of excellent over-the-ear headphones who also wants something stylish.
Currently, only the Pink AirPods Max colorway is on sale at Amazon for $450, so keep an eye out for the other models if you’re hoping to get another kind.
Target tells its customers to expect more while paying less — but soon, its shoppers won’t be able to purchase anything at all with a once-popular form of payment.
The retail giant said in a statement that it will stop accepting personal checks as payment starting July 15. The change, which was earlier reported by Minneapolis TV station KARE, will take place after Target’s Red Circle week, a sales event that ends on July 13.
The change comes amid waning use of personal checks, a form of payment that 9 in 10 consumers used at least once a year as recently as 2009, according to research from the Federal Reserve Bank of Atlanta. But today, only about half of Americans write checks at least once a year, with many shifting to digital payments such as Venmo, Zelle or PayPal, GoBankingRates found.
Target pointed to the shift in consumer preferences as its reason to stop accepting personal checks as payment.
“Due to extremely low volumes, we’ll no longer accept personal checks starting July 15,” a Target spokesperson said in an email. “We have taken several measures to notify guests in advance to aid an easy and efficient checkout experience.”
Target will continue to accept cash; digital wallets; buy now, pay later services; and credit and debit cards as well as SNAP/EBT cards, it said.
A few other retailers don’t accept personal checks, including Aldi’s and Whole Foods, with the latter saying it doesn’t allow checks in order to speed up the checkout process.
Even though fewer Americans are writing checks today, they remain popular with older consumers, GoBankingRates found in its survey. About 1 in 5 people over 66 write several checks each month, while about half of people under 55 don’t write a single check the entire year.
