Money Management

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When choosing a bank account like a savings account or a certificate of deposit (CD), most people head straight for the highest interest rate they can find. It’s not difficult to follow their logic: Higher interest rates often lead to more money for you.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But it’s not always that simple, especially when you’re talking about CDs, which require you to lock your money away for months or even years. The best investors know that. That’s why they’re staying away from short-term CDs, even though they promise the highest interest rates right now. Here’s why and where you should put your money instead.Interest rates aren’t the only important factorHow much you earn in interest depends on the interest rate and how long you invest your money for. Say you have a choice between a 6-month CD or a 12-month CD, both with 5.00% APYs. If you invest $10,000, you’d earn about $247 with the 6-month CD and $500 with the 12-month CD. No big surprises there: If you invest your money for longer, you’ll get a larger return.However, you also have to tie your money up for longer. That’s why most banks typically offer higher rates on long-term CDs to incentivize customers to pick a longer term. That’s not the case lately, though. High inflation has driven up short-term CD rates faster than long-term CD rates, and that’s left some people scratching their heads about where to invest.The answer lies in what we expect CD rates to do going forward. With inflation cooling, they’re beginning to decline. That means future CDs will likely pay less interest. If you hope to invest for a few years, locking in a short-term CD right now could hurt you in the long run.For example, say you have $10,000 you want to keep in CDs for three years. You’re deciding between three 1-year CDs and one 3-year CD. The 1-year CD offers a 5.00% APY right now while the 3-year CD only offers a 4.00% APY. But when you open your second 1-year CD, the rate has dropped to 3.50%. And by the time you open your third, it’s down to 2.00% APY. The table below illustrates how much your balance would be at the end of each year with each option:Year (1-Year CD Rate/3-Year CD Rate)Three 1-Year CDsOne 3-Year CDYear 1 (5.00%/4.00%)$10,500$10,400Year 2 (3.50%/4.00%)$10,868$10,816Year 3 (2.00%/4.00%)$11,085$11,249Data source: Author’s calculations. All amounts rounded to the nearest dollar.By locking in a high rate for a longer period, you come out ahead compared to three short-term CDs, even though the initial 1-year CD has a higher APY. In our example, the difference is pretty small. But if you invested a larger sum or over a longer time period, the single long-term CD would come out ahead by a larger margin.Where to keep your money insteadThe best place for your money right now depends on the level of risk you’re comfortable taking and when you plan to use it. If you’re determined to invest in CDs, medium to long terms are better bets than short terms as long as you’re comfortable giving up access to your money for that amount of time. Check out this curated list of some of the best CDs our experts recommend now.But CDs could be too risky or too conservative in some situations. It’s too risky for your emergency fund or savings you plan to spend before the CD term is up. You need a high-yield savings account for that. We have a list for that too. Click here to check out the top high-yield savings accounts paying 4.00% APY (or higher) right now.On the other hand, if you’re investing over a long time horizon — seven or more years from now — you’re much better off investing your money in the stock market if you’re comfortable doing so. There’s a risk of loss associated with this, but you could also gain far more than you could with even the best CD rates.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

When choosing a bank account like a savings account or a certificate of deposit (CD), most people head straight for the highest interest rate they can find. It’s not difficult to follow their logic: Higher interest rates often lead to more money for you.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But it’s not always that simple, especially when you’re talking about CDs, which require you to lock your money away for months or even years. The best investors know that. That’s why they’re staying away from short-term CDs, even though they promise the highest interest rates right now. Here’s why and where you should put your money instead.

Interest rates aren’t the only important factor

How much you earn in interest depends on the interest rate and how long you invest your money for. Say you have a choice between a 6-month CD or a 12-month CD, both with 5.00% APYs. If you invest $10,000, you’d earn about $247 with the 6-month CD and $500 with the 12-month CD. No big surprises there: If you invest your money for longer, you’ll get a larger return.

However, you also have to tie your money up for longer. That’s why most banks typically offer higher rates on long-term CDs to incentivize customers to pick a longer term. That’s not the case lately, though. High inflation has driven up short-term CD rates faster than long-term CD rates, and that’s left some people scratching their heads about where to invest.

The answer lies in what we expect CD rates to do going forward. With inflation cooling, they’re beginning to decline. That means future CDs will likely pay less interest. If you hope to invest for a few years, locking in a short-term CD right now could hurt you in the long run.

For example, say you have $10,000 you want to keep in CDs for three years. You’re deciding between three 1-year CDs and one 3-year CD. The 1-year CD offers a 5.00% APY right now while the 3-year CD only offers a 4.00% APY. But when you open your second 1-year CD, the rate has dropped to 3.50%. And by the time you open your third, it’s down to 2.00% APY. The table below illustrates how much your balance would be at the end of each year with each option:

By locking in a high rate for a longer period, you come out ahead compared to three short-term CDs, even though the initial 1-year CD has a higher APY. In our example, the difference is pretty small. But if you invested a larger sum or over a longer time period, the single long-term CD would come out ahead by a larger margin.

Where to keep your money instead

The best place for your money right now depends on the level of risk you’re comfortable taking and when you plan to use it. If you’re determined to invest in CDs, medium to long terms are better bets than short terms as long as you’re comfortable giving up access to your money for that amount of time. Check out this curated list of some of the best CDs our experts recommend now.

But CDs could be too risky or too conservative in some situations. It’s too risky for your emergency fund or savings you plan to spend before the CD term is up. You need a high-yield savings account for that. We have a list for that too. Click here to check out the top high-yield savings accounts paying 4.00% APY (or higher) right now.

On the other hand, if you’re investing over a long time horizon — seven or more years from now — you’re much better off investing your money in the stock market if you’re comfortable doing so. There’s a risk of loss associated with this, but you could also gain far more than you could with even the best CD rates.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
We all have at least one person on our list who already owns everything they need. Even though we want to show that we care, it can be difficult to decide what gift to buy them during the holiday season. You may be overthinking it! Costco sells winning gifts for people of all ages — even for the people who have everything.Top credit card to use at Costco (and everywhere else!)
We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco. Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.
Click here to read our full review for free and apply before the $200 welcome bonus offer ends!Ready to go shopping? Here are a few gift ideas that everyone on your list will surely be glad to receive.1. $50 Cinemark Theatres gift card for $39.99I don’t know about you, but most people I know enjoy watching movies. And new movies are constantly hitting theaters. Why not give a $50 Cinemark Theatres gift card? You can scoop one up at Costco for $39.99.These gift cards can be used to pay for movie tickets, merchandise, food, and drinks. This present gives your loved one some control over how they spend their gift card, and an experience-based gift like this will be appreciated.2. 50-inch by 60-inch Berkshire Life Heated Throw for $34.99You can’t go wrong with blankets. I have several at home, and I’m always happy to receive another one. Costco sells various blankets in-club and online. But here is one that you may want to consider for anyone you’re struggling to choose a gift for this season.Costco sells a 50-inch by 60-inch Berkshire Life Heated Throw for $34.99. This well-rated heated blanket is available in various colors. It has four heat settings and an auto-shutoff feature. Considering these blankets are currently on sale for $77 directly through Berkshire Life, this is a steal of a deal for a great present that is ideal for the cold winter months.Want to earn cash back on your next Costco haul? The right credit card can help. Check out our list of the top credit cards that offer big rewards at Costco.3. Four-pack of Apple AirTags for $79.99Here’s something that most people would get good use from — Apple AirTags! You can pick up a four-pack of these popular tracking devices for $79.99 at Costco. Apple sells this same four-pack for $99.99 — so Costco can save you $20. These are useful to have and it would make for a unique gift for anyone on your list.4. A Costco membership for $65 to $130Why not share your love of Costco with someone who isn’t already a member? You can help your loved one keep more money in their checking account by giving them exclusive access to Costco’s members-only deals.You can purchase a Costco membership and gift it to a friend or family member. You can buy a Gold Star membership for $65 at Costco.com. Another option is to purchase an Executive membership for $130. You can also buy memberships for others at your local club.The biggest difference between these memberships is that Executive members can earn 2% rewards back on eligible Costco purchases, up to a maximum of $1,250 in rewards each year.To buy a membership online, look for the Gift of Gold Star Membership at Costco.com. Want to give an Executive membership? Place two Gift of Gold Star memberships in your cart. Costco will mail a physical gift of membership card to the address of your choosing.It’s the thought that countsAlways remember it’s the thought that counts. Taking time out of your day and putting in the effort to get a gift for a friend or family member is a kind gesture. Don’t feel stressed about choosing the perfect gift — and don’t overspend. Any gift, even a homemade one, is generous.Top credit card to use at Costco (and everywhere else!)
We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco. Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.
Click here to read our full review for free and apply before the $200 welcome bonus offer ends!We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Costco Wholesale. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

We all have at least one person on our list who already owns everything they need. Even though we want to show that we care, it can be difficult to decide what gift to buy them during the holiday season. You may be overthinking it! Costco sells winning gifts for people of all ages — even for the people who have everything.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

Ready to go shopping? Here are a few gift ideas that everyone on your list will surely be glad to receive.

1. $50 Cinemark Theatres gift card for $39.99

I don’t know about you, but most people I know enjoy watching movies. And new movies are constantly hitting theaters. Why not give a $50 Cinemark Theatres gift card? You can scoop one up at Costco for $39.99.

These gift cards can be used to pay for movie tickets, merchandise, food, and drinks. This present gives your loved one some control over how they spend their gift card, and an experience-based gift like this will be appreciated.

2. 50-inch by 60-inch Berkshire Life Heated Throw for $34.99

You can’t go wrong with blankets. I have several at home, and I’m always happy to receive another one. Costco sells various blankets in-club and online. But here is one that you may want to consider for anyone you’re struggling to choose a gift for this season.

Costco sells a 50-inch by 60-inch Berkshire Life Heated Throw for $34.99. This well-rated heated blanket is available in various colors. It has four heat settings and an auto-shutoff feature. Considering these blankets are currently on sale for $77 directly through Berkshire Life, this is a steal of a deal for a great present that is ideal for the cold winter months.

Want to earn cash back on your next Costco haul? The right credit card can help. Check out our list of the top credit cards that offer big rewards at Costco.

3. Four-pack of Apple AirTags for $79.99

Here’s something that most people would get good use from — Apple AirTags! You can pick up a four-pack of these popular tracking devices for $79.99 at Costco. Apple sells this same four-pack for $99.99 — so Costco can save you $20. These are useful to have and it would make for a unique gift for anyone on your list.

4. A Costco membership for $65 to $130

Why not share your love of Costco with someone who isn’t already a member? You can help your loved one keep more money in their checking account by giving them exclusive access to Costco’s members-only deals.

You can purchase a Costco membership and gift it to a friend or family member. You can buy a Gold Star membership for $65 at Costco.com. Another option is to purchase an Executive membership for $130. You can also buy memberships for others at your local club.

The biggest difference between these memberships is that Executive members can earn 2% rewards back on eligible Costco purchases, up to a maximum of $1,250 in rewards each year.

To buy a membership online, look for the Gift of Gold Star Membership at Costco.com. Want to give an Executive membership? Place two Gift of Gold Star memberships in your cart. Costco will mail a physical gift of membership card to the address of your choosing.

It’s the thought that counts

Always remember it’s the thought that counts. Taking time out of your day and putting in the effort to get a gift for a friend or family member is a kind gesture. Don’t feel stressed about choosing the perfect gift — and don’t overspend. Any gift, even a homemade one, is generous.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Upsplash/The Motley Fool
AAA estimates that the average American spends about $1,452 annually on vehicle maintenance and repairs. That could be a problem for many drivers, considering that about 44% of the population says they’d have a difficult time affording a $1,000 emergency expense.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. So, how can you keep yourself out of the mechanic’s garage as much as possible? It starts with avoiding vehicles that are the least reliable. Here are four of them.1. Jeep WranglerI’ll admit, I like Wranglers a lot. They’re unique, versatile, and offer something many vehicles severely lack these days: fun. Unfortunately, they don’t have the best track record for reliability.Consumer Reports rated the 2024 Wrangler the lowest on its list of least reliable vehicles, noting that potential mechanical issues to look out for include the steering and suspension, drive system, and electrical system.Some good news for Wrangler owners: They’re often less expensive to insure compared to other SUVs. No matter what type of vehicle you own, click here to compare quotes from the cheapest car insurance companies.2. Volkswagen JettaIn college, I bought a used Acura Integra from a family friend. She loved her car, but it was older, and she really wanted a new Volkswagen Jetta. Less than a year later, she joked (almost sincerely) that she wished she could buy the car back from me because the Jetta was having too many problems.That was many years ago, and apparently, Jetta’s haven’t improved their reliability much since then. Consumer Reports gave the Jetta a low-reliability score for 2024, with the in-car electronics and climate system being a couple of trouble spots. In a sedan comparison two years ago, just 50% of Jetta owners said they’d buy the car again, compared to 65% of Mazda 3 owners.3. Nissan FrontierNissan’s midsized pickup might be the perfect amount of truck for weekend trips to the hardware store, but it’s one of the least reliable vehicles for 2024. According to Consumer Reports, potential trouble spots are the transmission and electrical accessories.Instead of the Frontier, you might want to opt for the Toyota Tacoma or the Honda Ridgeline, both of which have significantly higher reliability ratings than the Frontier.Related: The average annual cost to insure a standard pickup truck is more than $2,300. If you’re paying too much, shop around for lower premiums. Click here to get rates from the best car insurance companies.4. Volvo XC60 Plug-in HybridHybrids are a great option if you’re looking to save money on gas and potentially lower your carbon footprint. However, not all hybrids have the same reliability, and some could even cost you more in the long run because of repairs and maintenance.According to Consumer Reports, the Volvo XC60 Plug-in Hybrid has some issues with its EV battery and charging, making it onto the magazine’s list of least reliable vehicles. A better option might be the hybrid version of the Toyota RAV4, which is not only recommended by Consumer Reports but also can go an impressive 42 miles in electric-only mode.A car’s reliability isn’t the only factor when deciding whether to buy it, but knowing which vehicles will likely require more trips to the shop can help you make a more informed decision. After all, you don’t want your next car purchase to bust your monthly budget while enriching your mechanic’s vacation fund.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

AAA estimates that the average American spends about $1,452 annually on vehicle maintenance and repairs. That could be a problem for many drivers, considering that about 44% of the population says they’d have a difficult time affording a $1,000 emergency expense.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

So, how can you keep yourself out of the mechanic’s garage as much as possible? It starts with avoiding vehicles that are the least reliable. Here are four of them.

1. Jeep Wrangler

I’ll admit, I like Wranglers a lot. They’re unique, versatile, and offer something many vehicles severely lack these days: fun. Unfortunately, they don’t have the best track record for reliability.

Consumer Reports rated the 2024 Wrangler the lowest on its list of least reliable vehicles, noting that potential mechanical issues to look out for include the steering and suspension, drive system, and electrical system.

Some good news for Wrangler owners: They’re often less expensive to insure compared to other SUVs. No matter what type of vehicle you own, click here to compare quotes from the cheapest car insurance companies.

2. Volkswagen Jetta

In college, I bought a used Acura Integra from a family friend. She loved her car, but it was older, and she really wanted a new Volkswagen Jetta. Less than a year later, she joked (almost sincerely) that she wished she could buy the car back from me because the Jetta was having too many problems.

That was many years ago, and apparently, Jetta’s haven’t improved their reliability much since then. Consumer Reports gave the Jetta a low-reliability score for 2024, with the in-car electronics and climate system being a couple of trouble spots. In a sedan comparison two years ago, just 50% of Jetta owners said they’d buy the car again, compared to 65% of Mazda 3 owners.

3. Nissan Frontier

Nissan’s midsized pickup might be the perfect amount of truck for weekend trips to the hardware store, but it’s one of the least reliable vehicles for 2024. According to Consumer Reports, potential trouble spots are the transmission and electrical accessories.

Instead of the Frontier, you might want to opt for the Toyota Tacoma or the Honda Ridgeline, both of which have significantly higher reliability ratings than the Frontier.

Related: The average annual cost to insure a standard pickup truck is more than $2,300. If you’re paying too much, shop around for lower premiums. Click here to get rates from the best car insurance companies.

4. Volvo XC60 Plug-in Hybrid

Hybrids are a great option if you’re looking to save money on gas and potentially lower your carbon footprint. However, not all hybrids have the same reliability, and some could even cost you more in the long run because of repairs and maintenance.

According to Consumer Reports, the Volvo XC60 Plug-in Hybrid has some issues with its EV battery and charging, making it onto the magazine’s list of least reliable vehicles. A better option might be the hybrid version of the Toyota RAV4, which is not only recommended by Consumer Reports but also can go an impressive 42 miles in electric-only mode.

A car’s reliability isn’t the only factor when deciding whether to buy it, but knowing which vehicles will likely require more trips to the shop can help you make a more informed decision. After all, you don’t want your next car purchase to bust your monthly budget while enriching your mechanic’s vacation fund.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
It’s no secret that the cost of living is astronomical right now. And when weighing the cost of groceries against your credit card bill, it’s easy to understand why you’d prioritize the former. Unfortunately, though, missing credit card payments can lead to collections. And not only can that be stressful, it can lead to wage garnishment, meaning you’ll have less money in your bank account.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Even so, you should know that you aren’t out of options, especially if your debt isn’t yet in collections. Here are three more viable options for avoiding credit card debt collection.1. Take out a personal loanPaying off your debt by taking out a personal loan is one way to avoid having debt go to collections. Because it’s no longer on the books of a given creditor, the issue is settled on its end. So all you’d have to do is keep up with your new personal loan payments to stay on track to get out of debt with minimal harm to your credit.The major catch here is that you’ll need to rely on your credit to access these loans. And the better your credit, the better the loan terms. For example, you may be able to access significantly lower interest rates than your current credit card APR.If you’ve already missed a couple of payments, or you have a lot of debt, you might find it difficult to qualify for a personal loan on your own. If that’s the case, getting a qualified cosigner can help you access this option. Or opting for a secured loan may help, as long as you’re confident that you won’t miss payments, which would mean losing the collateral, such as a savings account or car.2. Look into a balance transfer cardAgain, transferring your debt to another entity — or in this case, another credit card — will also ensure that your creditor can’t send your debt to collections. Many of these cards will even offer a limited-time 0% introductory rate. For example, you may get 12 to 21 months interest free. That can help reduce the total cost of your debt, or at least give you some breathing room.Interested in getting one of these cards? Check out our list of the best balance transfer cards available now.But again, you’ll have to qualify. If you’re at the point where you haven’t yet missed a payment, and your credit score is above 670, you likely have options. If your score is lower, you may have more limited options, such as shorter introductory periods or a higher APR.Another factor here is that there is a balance transfer fee, and that’s often a percentage of the transferred amount (for example, 3% or 5%), or a flat amount. Still, checking to see if you can qualify for a balance transfer credit card is worth the time because of the potential benefits.3. File for bankruptcyIf you’ve reached the point where paying off your credit card debt is just not realistic anymore, you might want to consider filing for bankruptcy to wipe it out and start over. In fact, that’s what over half a million Americans have done from September of 2023 to September of 2024. That represents a 16.2% rise in bankruptcy filings compared to the previous year.There are two common bankruptcy routes you can take:Chapter 7: This requires you to sell off assets, and wipes out your debts with those proceeds.Chapter 13: This gives you a debt payment plan you have to stick to for three to five years, and in exchange you get to keep all of your assets.Bankruptcy stays on your credit report for seven to 10 years. But that doesn’t mean it’s best avoided at all costs, especially if you’re in a situation where you’re having trouble paying for basic necessities. In fact, it can provide the fresh start you need to improve your quality of life.A word of caution about debt settlementDebt settlement is often touted as a way to reduce your debt and avoid collections. But if this is a path you want to pursue, you should be careful. These companies typically charge a fee, and settlement is not guaranteed. Plus, interest and fees keep accumulating while they’re attempting to negotiate with your creditors — during which time your debt might still get sent to collections.So, in the worst-case scenario, you could end up with more debt than you started out with and still have your credit score take a downturn. Talking with a credit counselor is a good first step to understand your options and find the safest way to avoid collections.Facing the possibility of debt collection is never easy. But that doesn’t mean you’re powerless to stop it. And while your options may be limited, there are avenues to help you mend your financial situation and get back on track.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

It’s no secret that the cost of living is astronomical right now. And when weighing the cost of groceries against your credit card bill, it’s easy to understand why you’d prioritize the former. Unfortunately, though, missing credit card payments can lead to collections. And not only can that be stressful, it can lead to wage garnishment, meaning you’ll have less money in your bank account.

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Even so, you should know that you aren’t out of options, especially if your debt isn’t yet in collections. Here are three more viable options for avoiding credit card debt collection.

1. Take out a personal loan

Paying off your debt by taking out a personal loan is one way to avoid having debt go to collections. Because it’s no longer on the books of a given creditor, the issue is settled on its end. So all you’d have to do is keep up with your new personal loan payments to stay on track to get out of debt with minimal harm to your credit.

The major catch here is that you’ll need to rely on your credit to access these loans. And the better your credit, the better the loan terms. For example, you may be able to access significantly lower interest rates than your current credit card APR.

If you’ve already missed a couple of payments, or you have a lot of debt, you might find it difficult to qualify for a personal loan on your own. If that’s the case, getting a qualified cosigner can help you access this option. Or opting for a secured loan may help, as long as you’re confident that you won’t miss payments, which would mean losing the collateral, such as a savings account or car.

2. Look into a balance transfer card

Again, transferring your debt to another entity — or in this case, another credit card — will also ensure that your creditor can’t send your debt to collections. Many of these cards will even offer a limited-time 0% introductory rate. For example, you may get 12 to 21 months interest free. That can help reduce the total cost of your debt, or at least give you some breathing room.

Interested in getting one of these cards? Check out our list of the best balance transfer cards available now.

But again, you’ll have to qualify. If you’re at the point where you haven’t yet missed a payment, and your credit score is above 670, you likely have options. If your score is lower, you may have more limited options, such as shorter introductory periods or a higher APR.

Another factor here is that there is a balance transfer fee, and that’s often a percentage of the transferred amount (for example, 3% or 5%), or a flat amount. Still, checking to see if you can qualify for a balance transfer credit card is worth the time because of the potential benefits.

3. File for bankruptcy

If you’ve reached the point where paying off your credit card debt is just not realistic anymore, you might want to consider filing for bankruptcy to wipe it out and start over. In fact, that’s what over half a million Americans have done from September of 2023 to September of 2024. That represents a 16.2% rise in bankruptcy filings compared to the previous year.

There are two common bankruptcy routes you can take:

• Chapter 7: This requires you to sell off assets, and wipes out your debts with those proceeds.
• Chapter 13: This gives you a debt payment plan you have to stick to for three to five years, and in exchange you get to keep all of your assets.

Bankruptcy stays on your credit report for seven to 10 years. But that doesn’t mean it’s best avoided at all costs, especially if you’re in a situation where you’re having trouble paying for basic necessities. In fact, it can provide the fresh start you need to improve your quality of life.

A word of caution about debt settlement

Debt settlement is often touted as a way to reduce your debt and avoid collections. But if this is a path you want to pursue, you should be careful. These companies typically charge a fee, and settlement is not guaranteed. Plus, interest and fees keep accumulating while they’re attempting to negotiate with your creditors — during which time your debt might still get sent to collections.

So, in the worst-case scenario, you could end up with more debt than you started out with and still have your credit score take a downturn. Talking with a credit counselor is a good first step to understand your options and find the safest way to avoid collections.

Facing the possibility of debt collection is never easy. But that doesn’t mean you’re powerless to stop it. And while your options may be limited, there are avenues to help you mend your financial situation and get back on track.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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[[{“value”:”Image source: Getty Images
You’re not necessarily expected to be focused on retirement at age 40. At that point, you may be grappling with mortgage payments, summer camp bills for your kids, and a host of other near-term expenses.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. The typical 40-year-old has $45,000 in retirement savings, according to the Federal Reserve. So if your retirement plan balance is $0, it means you’ve probably got some catching up to do.That’s the bad news. The good news, though, is that if you’re only 40, you have plenty of opportunity to make up for lost time. But the key is to get on the right track now to take advantage.Drum up the moneyChances are, if you’re 40 with no retirement savings, it’s because you’ve been unable to comfortably afford individual retirement account (IRA) contributions. So at this point, you have a choice: You can cut back on spending, or you can try to boost your income with a side hustle to come up with the money.There’s no right or wrong choice between these two. But the money for your retirement account has to come from somewhere. And you may find that working a second gig is easier than finding ways to cut costs, especially if you’re already on a tight budget.Thankfully, the gig economy is loaded with options. And you may be able to find a way to earn money you actually enjoy, whether it’s caring for pets, selling baked goods, or getting paid to write product reviews.Open an IRA and investIf you’re 40 years old and plan to retire in your 60s, you have a good amount of time to take advantage of compounded returns in a stock portfolio. Over the past 50 years, the S&P 500’s average annual return has been 10%, accounting for strong years as well as weak ones. If you load up an IRA with stocks, you might enjoy that same return since you’re investing over a long period of time.Say you’re able to drum up $200 a month for your IRA starting now, and you’re looking to retire at 65. If you’re able to score a 10% yearly return on your money, that leaves you with about $236,000 by the time retirement rolls around.If you don’t have a retirement account available through your job, you can open an IRA at any financial institution that offers one. Click here for a list of the best IRAs to find a good home for your retirement savings.From there, it’s a good idea to arrange for your IRA contributions to happen automatically. Once you have extra money coming in from your side hustle (or from cutting expenses), set up an automatic transfer so that money goes directly into your IRA once a month, or at an interval that works for you.You might think your retirement is doomed if you’re 40 and haven’t started saving yet. And the reality is that if you continue on that path, you could easily find yourself cash-strapped later in life. But if you make some changes and start investing in an IRA immediately, you can course-correct and set yourself up for the comfortable retirement you deserve.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

You’re not necessarily expected to be focused on retirement at age 40. At that point, you may be grappling with mortgage payments, summer camp bills for your kids, and a host of other near-term expenses.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

The typical 40-year-old has $45,000 in retirement savings, according to the Federal Reserve. So if your retirement plan balance is $0, it means you’ve probably got some catching up to do.

That’s the bad news. The good news, though, is that if you’re only 40, you have plenty of opportunity to make up for lost time. But the key is to get on the right track now to take advantage.

Drum up the money

Chances are, if you’re 40 with no retirement savings, it’s because you’ve been unable to comfortably afford individual retirement account (IRA) contributions. So at this point, you have a choice: You can cut back on spending, or you can try to boost your income with a side hustle to come up with the money.

There’s no right or wrong choice between these two. But the money for your retirement account has to come from somewhere. And you may find that working a second gig is easier than finding ways to cut costs, especially if you’re already on a tight budget.

Thankfully, the gig economy is loaded with options. And you may be able to find a way to earn money you actually enjoy, whether it’s caring for pets, selling baked goods, or getting paid to write product reviews.

Open an IRA and invest

If you’re 40 years old and plan to retire in your 60s, you have a good amount of time to take advantage of compounded returns in a stock portfolio. Over the past 50 years, the S&P 500’s average annual return has been 10%, accounting for strong years as well as weak ones. If you load up an IRA with stocks, you might enjoy that same return since you’re investing over a long period of time.

Say you’re able to drum up $200 a month for your IRA starting now, and you’re looking to retire at 65. If you’re able to score a 10% yearly return on your money, that leaves you with about $236,000 by the time retirement rolls around.

If you don’t have a retirement account available through your job, you can open an IRA at any financial institution that offers one. Click here for a list of the best IRAs to find a good home for your retirement savings.

From there, it’s a good idea to arrange for your IRA contributions to happen automatically. Once you have extra money coming in from your side hustle (or from cutting expenses), set up an automatic transfer so that money goes directly into your IRA once a month, or at an interval that works for you.

You might think your retirement is doomed if you’re 40 and haven’t started saving yet. And the reality is that if you continue on that path, you could easily find yourself cash-strapped later in life. But if you make some changes and start investing in an IRA immediately, you can course-correct and set yourself up for the comfortable retirement you deserve.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

“}]] Read More