Money Management

Americans owe over $1 trillion in credit card debt and an increasing percentage of that balance is past due. Find out how to tackle your balance today. [[{“value”:”

Americans owe a total of $1.14 trillion in credit card debt, according to the Federal Reserve Bank of New York. That’s a lot of money, particularly when you consider that credit card interest can run to 20% or 25% (and sometimes even higher). Those high APRs make it all too easy for credit card debt to become unmanageable.

Worryingly, too many Americans are having trouble making their minimum payments. Data from the Federal Reserve Bank of Philadelphia shows that the share of overdue balances is getting higher.

Indeed, the share of delinquent balances is now at the highest it’s been since the organization started tracking the data in 2012. And 3.6% of credit card balances are 30 days past due, 2.59% are 60 days past due, and 1.9% are 90 days past due.

What happens if you fall behind with credit card payments?

Missing a credit card payment is not ideal, but it’s a solvable problem. You will likely need to pay a late fee, and in some cases you may have to pay a penalty APR. If you are able to, pay the minimum as soon as possible. Your credit score will take a hit if the payment is more than 30 days late, and that damage gets more serious once you hit 60 or even 90 days.

If you can’t make your minimum credit card payment, reach out to your card issuer. The ideal scenario is that you find the money from somewhere. But if you’re in trouble financially, the sooner you tell your card company what’s going on, the more likely you are to find a solution.

At the very least, your card issuer might waive the late fee. You might also be able to change your due date or temporarily modify your payments.

How to tackle your credit card debt

Carrying a balance on your credit card is a heavy financial weight. Not only does it put you at risk of falling behind with payments, but it also means you’re losing a chunk of your paycheck to interest.

Unfortunately, tackling that debt can feel like an uphill battle. Try to take heart from the knowledge that other people have climbed that same debt mountain. You can do it, too. What’s important is to make a plan and a promise to yourself that you’ll keep plugging away at it.

1. Check in with your finances

I’ll admit, this is one of things I always procrastinate. And once I do it, it’s always easier than I thought it would be. Go through your bank and credit card statements. List out what you spend each month in different categories. And list what you owe on each card (assuming there’s more than one), along with the APR.

The only way you’re going to find extra cash to put toward those balances is by aggressively cutting costs. Try to identify areas where you can spend less. And consider taking on a side hustle or asking for extra hours at work to increase your income. Figure out how much you can realistically put toward debt repayment each month.

2. Decide what approach you will take to your debt

Two popular ways to pay down credit card debt are the debt snowball approach and the debt avalanche method. Whichever one you choose, try to automate your payments so the money goes toward debt before you can spend it on anything else.

The debt snowball involves tackling the smallest balances first. That way you get the satisfaction of paying each one down before moving to the next one. The debt avalanche will see you prioritizing the debt with the highest rate. Financially, it’s more effective. But there’s a psychological kick to the snowball method’s quick wins that can make it easier to stay the course.

3. Consider debt consolidation

The difficulty with high-interest credit card debt is that it can feel as if you’re accruing interest faster than you’re paying down your balance. Debt consolidation is a way to roll your card balances into one loan, ideally with a lower interest rate. It simplifies things because you only need to worry about one payment. And, if the APR is lower, it can reduce the cost of your debt.

There are a few different ways to consolidate your credit card debt, particularly if you have a strong credit score. You might apply for a personal loan or debt consolidation loan. If you qualify for a balance transfer credit card with a low introductory rate, that may also give you a temporary respite from interest.

If you go the debt consolidation route, there is one big caveat: Don’t use that hard-won breathing space to accumulate more debt. Otherwise you could end up carrying new credit card balances on top of your consolidated debts.

Key takeaway

It isn’t so surprising that more and more Americans are struggling to keep on top of their credit card payments. High living costs have hammered people’s budgets in recent years, making it hard to make ends meet. However, if you carry a credit card balance, the sooner you find ways to pay it down, the better. Unfortunately, debt is one of those problems that often gets worse if you ignore it.

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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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent 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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Want extra money? Read on to see why a side hustle may be more work than you bargained for. [[{“value”:”

A friend of mine works a full-time job and a second one that has him fetching food for people on the side. The amount of money his side hustle earns him can vary, but most weeks, he’s pulling in an extra $300 to $400 on top of his regular paycheck.

That’s important, because he needs his entire paycheck to cover his basic expenses. His side hustle gives him cash he can use to add to his savings account.

But while my friend appreciates having the extra money, earning it isn’t easy. To get that $300 to $400 a week, he often has to work up to 20 hours on top of a full-time job. Oh, and this friend of mine is a parent, which means he’s also quite busy shuttling his kids to activities, overseeing homework, and making sure they’re clean and fed.

The good news, though, is that my friend may not have to work his side hustle for that much longer. And if you’re plugging away at a side hustle that’s seriously eating into your spare time, you may want to plan for a similar exit strategy.

A better path to easy money

A side hustle may be an effective way of earning money, but it’s not easy. The time you spend on that second gig is time you can’t reclaim for other purposes, whether it’s social events with friends, personal downtime, or sleep.

That’s why you shouldn’t necessarily have the goal of working a side hustle indefinitely — even if you’re earning good money. Instead, you should do your best to bank as much side hustle earnings as possible and then use that money to establish a passive income stream. That could mean opening a series of CDs that pay you interest steadily, or putting together a stock portfolio that has you earning money via dividend income and/or gains.

Of course, to earn a nice amount of passive income, you need a decent chunk of cash to save or invest. You may have to work a side hustle for a solid year or two to get to that point. And that’s fine.

More so than fine, it’s smart. But you should also aim to have an endpoint to that extra hustling — for the sake of your mental and physical well-being.

Passive income could one day be yours

My friend has been working his side hustle since the start of the year. And his goal is to get to $20,000 in extra money that he can then invest or put to work in a CD while rates remain high.

Now, $20,000 in side hustle income might seem like a lofty goal. But so far, my friend is on track to get there in just over a year. The reason he’s aiming so high is that he knows it takes a fair amount of money to make a decent chunk of passive income.

Right now, for example, many CDs are still paying 5%. But if you only have $2,000 to put into a 12-month CD at a 5% APY, then you’re looking at $100 a year in passive income. That’s probably not a life-changing amount. A $20,000 CD with those same terms, however, will pay you $1,000 over 12 months.

Similarly, if you put $20,000 into a stock portfolio that grows at a rate of 10% per year, which is in line with the stock market’s average annual return over the past 50 years, then 10 years from now, your portfolio could be worth about $52,000. That amounts to about $3,200 per year in passive income when you break it down on an annual basis. And that doesn’t even include the dividend payments you might receive.

If you only have $2,000 to invest over a decade at a 10% annual return, you’re looking at $5,200 in your stock portfolio after 10 years. That’s $320 per year you’re invested, which is a nice sum, but not a ton.

That’s why it is a good idea to work a side hustle for a period. You need a decent chunk of cash to start with to earn a nice amount of passive income. But don’t resign yourself to holding down a second job indefinitely when you might be able to better your financial picture without having to put in all of that extra work.

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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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent 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 positions in and recommends Fetch. The Motley Fool has a disclosure policy.

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Many Sam’s Club shoppers rave about the retailer’s Member’s Mark product offerings. Read on for six Member’s Mark items that are affordable and loved by members. [[{“value”:”

For many shoppers, a Sam’s Club membership can unlock significant savings. If you want to reduce your grocery and household goods spending, consider joining Sam’s Club. Shopping the deals at your local club could help you keep more money in your checking account.

The warehouse club sells name-brand essentials and products from its private-label Member’s Mark brand. While not every Member’s Mark product is a great buy, many of them are. Here are some of the top Member’s Mark products worth your money.

1. Member’s Mark Ultra Premium Toilet Paper

Many Sam’s Club shoppers rave about Member’s Mark toilet paper. If you’re sick of spending a lot of money on poor-quality toilet paper, try this product. You can buy a 45-roll pack of Member’s Mark Ultra Premium 2-ply Toilet Paper for less than $25.

2. Member’s Mark Power Flex Tall Kitchen Drawstring Trash Bags

Tall kitchen trash bags are another favorite Member’s Mark product available at Sam’s Club. For $16.98, you can buy a 200-count box of 13-gallon Member’s Mark Power Flex Tall Kitchen Drawstring Trash bags. Sam’s Club members love how durable these trash bags are.

3. Member’s Mark Select & Tear 2-Ply Paper Towels

Another household good that is worth your money is the Member’s Mark Select & Tear 2-Ply Paper Towels. You can get a 15-roll pack for around $20. Reviews mention how durable and thick these paper towels are. Plus, the select-and-tear style rolls can help you reduce waste.

4. Member’s Mark Tempura Orange Chicken

Member’s Mark paper products aren’t the only worthy buy at your local Sam’s Club. If you’re looking for an easy dinner for busy weeknights, try a box of the Member’s Mark Tempura Orange Chicken. You’ll spend $12.98 on this 48-ounce box of deliciousness, and you can easily pair it with frozen vegetables and rice for a complete meal. The best part is you can get dinner on the table within 15 minutes.

5. Member’s Mark Allergy Relief 24-Hour Allergy Tablets

This one’s for all of the people who suffer from allergies. Member’s Mark Allergy Relief 24-hour Allergy Tablets are well-rated and affordable. You can get a 400-count box for around $15. This is an excellent buy to consider if your household goes through allergy medications quickly.

6. Member’s Mark Spicy Chicken Breast Fillets

Another favorite food find is the Member’s Mark Spicy Chicken Breast Fillets. You can buy a three-pound bag of frozen spicy chicken for around $15. You’ll be glad to have a bag in your freezer because it’s a versatile food find. You can take your next salad to the next level, pair it with a side dish for a full meal, or assemble a quick and filling sandwich.

Earn rewards when you shop

The deals found at warehouse clubs can help you keep more cash in the bank. If you’re considering becoming a Sam’s Club member, take advantage of the opportunity to earn rewards when you shop.

One way to maximize your savings is to pay for your Sam’s Club hauls with a rewards credit card. You can earn rewards every time you shop. Many shoppers use a cash back rewards card to earn cash rewards. Check out our list of the best cash back credit cards to learn more.

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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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent 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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Thinking of getting a credit card that earns rewards? Here are some card features you should research before you apply for a new rewards card. [[{“value”:”

Many people use rewards credit cards for everyday spending. If you only use your credit cards to charge what you can afford, this can be a smart money move. It can also feel exciting to earn rewards when you pay for everyday expenses.

But how rewards credit cards function can differ from one card to another. Before adding a new rewards credit card to your wallet, you should ensure it fits your needs and goals. Here’s what to consider before you get a new rewards credit card.

1. How the card earns rewards

Not every card earns rewards in the same way. Some cards offer flat-rate rewards on every purchase, meaning no matter what you buy, you earn rewards at the same rate.

Other cards have bonus categories. When you spend in those categories, you earn at a higher rate. Meanwhile, when spending outside of those categories, you earn rewards at a lower rate.

Understanding how a credit card earns rewards is a must. Some people use multiple rewards credit cards because they want to maximize the rewards they earn on typical spending. If you do this, consider which card is best to use when paying for your everyday purchases.

2. Redemption options

You’ll want to plan how to redeem your rewards once you earn them. It’s wise to research the redemption options before applying for a new credit card. You want to know whether you can get cash back, a statement credit, or use your points or miles for travel.

Some redemption choices may provide more value, so strategizing how to redeem your rewards can help you stretch your credit card rewards.

3. Welcome offer rules and restrictions

Many credit card issuers promote attractive welcome offers available to new cardholders. If you qualify for the offer and meet the minimum spending requirements, you could walk away with a sizable stash of points, miles, or cash rewards.

However, only some people are eligible for these offers. Some credit cards have more restrictions, such as allowing customers to receive a welcome offer for a specific card only once in their lifetime.

Others may restrict customers from being eligible for a particular card’s welcome offer once every few years. It’s best to research these details before applying for a card to know what to expect. You should also make sure you can comfortably afford to meet the minimum spend.

4. Fees

Finally, pay attention to all the fees associated with the card you’re considering. Many rewards cards and cash back credit cards with premium perks have an annual fee. You should only get a credit card like this if you can afford the yearly fee (and ideally, earn more than enough rewards to make it worthwhile).

If you’re on a tight budget, there are no annual fee rewards cards. It’s also wise to review all other fees, like the APR, late payment, and foreign transaction fees. You can avoid being charged credit card interest by paying your entire statement balance every month.

Choose your ideal rewards credit card

There are many rewards credit cards on the market. But not every card will be right for you. Take your time comparing rewards credit card options and look into the features mentioned above so you can apply for your ideal credit card.

For a closer look at some of the top rewards card recommendations, review our list of the best rewards credit cards.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent 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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Paying your bills in advance could help you keep more money in the bank. Find out which bills you may want to pay in advance to qualify for a discount. [[{“value”:”

No one enjoys paying bills, but we all must do it. You may even want to consider paying some of your bills before the due date. Paying your bills ahead of time can ensure they’re paid on time and in full, but that’s not the only advantage.

Many companies offer a discount to customers who pay their entire bill immediately. Prompt bill payment could result in significant savings. Here are a few bills you may want to pay ahead of time to keep more money in your pocket.

1. Insurance

Your insurance provider may extend a discount if you pay your policy every six months or annually instead of yearly. I save over $160 yearly on auto insurance premiums by paying my bill every six months. While my car insurance company doesn’t offer annual billing, many do.

Check to see if you can save money on your auto, renters, homeowners, or other insurance premium costs by paying your entire bill in advance.

2. Cable, internet, and mobile phone bills

If you have cable, home internet, or mobile phone service, your service provider may extend a discount if you enable autopay. While this technically does not pay your bill ahead of time, it gives the company permission to charge your payment method on file on the due date.

Many companies do this to ensure they get paid promptly. It’s common for companies to extend a discount to customers who enroll in autopay. It’s not unusual to get a discount of $5 or $10 each month for each of these services. By being enrolled in autopay, I’m saving $10 monthly on my home internet bill — a savings of $120 every year.

Just check whether you must use a specific payment method to get the discount. Some billers now require auto payment to be set up using a checking account instead of a credit card. You may not qualify for a discount if you don’t use their preferred payment method.

3. Streaming services

While not all streaming service providers extend a discount to those who pay for their service upfront, some do. Hulu offers discounts to ad-supported plan customers who pay their bills yearly. This saves customers nearly $16. Unfortunately, this discount isn’t available to Hulu customers with ad-free plans.

It’s worthwhile to research whether your streaming services providers extend such discounts. There’s no reason to overpay if you can afford to pay your subscription cost annually.

4. Home security monitoring services

If you have a doorbell camera or other security cameras on your property, you likely pay a subscription fee to save your recordings or for other security services. It’s common for these companies to offer a discount to subscribers who pay their service bills yearly.

I have a Ring Doorbell camera and pay $49.99 annually instead of $4.99 monthly for my device. While doing this won’t make me rich, it frees up nearly $10 for other expenses.

5. Memberships and subscriptions

Another way to save money on bills is to pay your memberships and subscriptions annually instead of every month. One example is Amazon Prime. You’ll pay $14.99 per month to be a Prime member, or you can pay $139 annually. You’ll save over $40 with this money move.

Another example is your gym membership. You may save money with yearly billing. Review your memberships and subscriptions to see if you can save money with this strategy.

Look for ways to trim your spending

As everyday expenses become more costly, getting creative when looking for ways to trim your spending is beneficial. Enabling autopay or paying your bills annually instead of monthly are two ways to save money on bills.

Another option is to see if you can downgrade some of your services or plans. Every dollar you save adds up and benefits your wallet.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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