CBS News
9/4: CBS News 24/7 Episode 2
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
CBS News
Israeli-Palestinian pop group “as1one” on how they promote unity through music
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
CBS News
5 expensive credit card mistakes to avoid during the holidays
The holiday season is a time to share joy and create memories. But for many Americans, it also brings financial stress. The extra costs that arise this time of year can result in overspending, and credit cards feel like an easy solution to financing holiday purchases. But with the average credit card interest rate sitting above 23%, any unchecked holiday spending can lead to significant long-term debt.
While credit cards can be a helpful tool for managing holiday expenses, they also come with risks that can affect your financial stability if used irresponsibly. Certain decisions, like making only minimum payments or maxing out your credit cards, can quickly lead to big issues with your finances due to mounting interest. And if you’re already dealing with some high-rate credit card debt, avoiding the big holiday credit card mistakes people make is even more critical.
Fortunately, you can enjoy the holiday season without derailing your financial goals. All it takes is being mindful of the potential pitfalls that can come with using your credit cards during the holidays.
Start tackling your lingering credit card debt now.
5 expensive credit card mistakes to avoid during the holidays
If you want to keep your financial health in check this holiday season, it’s important to avoid these expensive credit card mistakes.
Overspending without a budget
One of the biggest mistakes people make during the holidays is shopping without a clear plan. Whether it’s buying gifts or splurging on decorations, the lack of a budget makes it easy to overspend in the excitement of the season. To avoid this mistake, set a realistic budget that covers all holiday-related expenses, not just gifts, and track your spending to ensure you stay within your limits. A budget serves as a financial guide, helping you focus on what’s most important without jeopardizing your financial health.
Explore the credit card debt relief options available to you today.
Relying on high-rate credit cards
With the average credit card interest rate at a record high, relying on a credit card to finance your holiday expenses can significantly increase the overall cost of your purchases. For example, a $1,000 holiday shopping spree could cost hundreds more in interest over time if you only make minimum payments. This kind of financial strain can linger well into the new year.
So, explore alternative payment options instead. If you have multiple credit cards, use the one with the lowest interest rate or look for promotional offers like 0% APR. If cash is an option, it can help you avoid interest charges entirely.
Falling for store credit card offers
Retailers often tempt shoppers with discounts for opening a store credit card during checkout. While saving 10% or 15% on your purchase might sound appealing, these cards often come with high interest rates — the average retail card currently comes with a rate of over 30% right now — as well as restrictive terms and limited usability outside the retailer.
Before opening a store credit card, think about your financial situation and whether the benefits outweigh the costs. In most cases, it’s better to stick with a general-purpose credit card that offers lower rates, better rewards and more flexible redemption options.
Making only the minimum payments
After the holidays, many people will try to ease the burden on their budget by making only the minimum payments on their credit card bills. While this strategy might seem like a way to manage cash flow, it’s a costly mistake. Paying just the minimum means the balance accrues interest, turning holiday purchases into a long-term financial burden. To avoid this, pay as much as you can each month. Even an extra $50 or $100 toward the balance can make a big difference.
Ignoring payment deadlines
The busy holiday season can make it easy to overlook payment due dates, but missing even one payment can result in late fees, penalty APRs and damage to your credit score. If you’re juggling multiple cards, the risk of missing a payment grows.
It can help to set up automatic payments or calendar reminders to ensure you don’t miss deadlines. If possible, you should also aim to pay your balance early to stay ahead of holiday bills. This simple step can save you from unnecessary fees and help you maintain a strong credit score.
Overlooking your debt relief options
If you’re already carrying significant credit card debt, adding any holiday spending to the mix can lead to even bigger issues. Rather than ignoring the problem or adding to it, you may want to explore your debt relief options, like debt consolidation or debt settlement, instead.
Debt consolidation combines multiple balances into a single loan, often with a lower interest rate, making your payments more manageable. Debt settlement can help you to negotiate a reduced payoff amount with your creditors, providing a path to financial relief. These strategies can help you reduce the stress of managing high-interest credit card debt.
The bottom line
The holidays are meant to be a time of joy and connection, not financial anxiety. By avoiding these costly credit card mistakes, you can celebrate without compromising your financial stability. A thoughtful approach to holiday spending, combined with proactive debt management strategies, will also help you focus on what truly matters — cherishing the season with your loved ones.
CBS News
Sailor who died with 428 crewmates in Pearl Harbor attack finally accounted for
A United States Navy seaman who died during the attack on Pearl Harbor has been accounted for decades after his death, military officials said Thursday.
U.S. Navy Seaman 2nd Class John C. Auld, 23, was from Newcastle, England, according to a news release from the Defense POW/MIA Accounting Agency. He was assigned to the USS Oklahoma, a battleship moored at Pearl Harbor, in 1941.
On Dec. 7, Auld was aboard the ship when Japanese pilots attacked Pearl Harbor. During the attack, the USS Oklahoma took multiple torpedo hits and capsized just 12 minutes after it was first hit, according to the Department of Defense. Four hundred and twenty-nine crewmembers, including Auld, died. Only 32 crewmembers survived, thanks to what the Department of Defense called “acts of valor” by other military members. It was the greatest death toll from any ship that day, other than the USS Arizona, which lost over 1,100 seamen.
It took three years for Navy personnel to recover the crew’s remains. The remains were interred in the Halawa and Nu’uanu Cemeteries on Oahu in 1944, and in 1947, military officials began working to identify the remains. The remains were disinterred and transferred to a laboratory, where 35 sets of remains were identified.
The unidentified remains were buried again at the National Memorial Cemetery of the Pacific in Honolulu, Hawaii. The names of those who could not be identified were recorded on the Courts of the Missing at the cemetery.
Between June and November 2015, those remains were again exhumed and analyzed at the DPAA’s laboratory. Scientists used anthropological analysis, DNA analysis, and circumstantial and material evidence to make the identification. In 2018, Auld’s remains were identified. However, it wasn’t until recently that the DPAA was made aware that Auld’s family had been notified of his identification, which led to a delay in the announcement.
The Department of Defense announced earlier this month that the remains of all crewmembers who died aboard the USS Oklahoma have been identified. Pearl Harbor survivors will commemorate the 83rd anniversary of the attack on Saturday.
Now that Auld has been identified, a rosette will be placed next to his name at the Courts of the Missing. He was buried in Albuquerque, New Mexico on Friday morning, according to the DPAA and a funeral notice shared online.