Plus, get tips for dealing with financial stress
| | | | | August 2022 Stocks are down, prices on just about everything are up — and it feels like your money goals have gone sideways. Sound familiar? You're not alone. Three quarters of all Americans are stressed about their finances right now. That's why we're launching The Vine, a newsletter to help you make sense of the news that affects your wallet and grow your wealth for the future. Read on for the smartest money moves you can make today. —Ismat Mangla, Editor Winning Number: 38 That's how many points, on average, credit scores jumped for Americans who used a personal loan to pay off $5,000 or more of credit card debt, according to a recent LendingTree study. When you pay down credit card debt, you're using less of the revolving credit available to you. That makes the credit scoring algorithms happy, which is why your score zooms upward. And it's not just for big balances — paying off between $1,000 and $5,000 of debt still resulted in a 17-point credit score boost. Why it matters "A higher credit score is a big, big deal because there are few things in life that are more expensive than crummy credit. It can cost you thousands of dollars in the form of higher interest rates on loans, higher insurance premiums and more. It can even keep you from getting that new apartment you're hoping to rent." —Matt Schulz, chief credit analyst at LendingTree The bottom line Paying down revolving — aka credit card — debt can boost your credit score and help you save beaucoup bucks on major loans (say for a car or a home) you may need in the future. Another upside? You'll lock in a single, fixed monthly payment and pay less in interest overall, thanks to a lower interest rate than the one on your credit card. | | Winning Money Move Take that first step to freeing yourself from debt. If you're unsure where to start, check out our guide on strategies for whittling your debt down to nothing. Top tips: Extra credit Not ready to transfer your credit card debt to a personal loan? You can still save some cash by calling your credit card issuer to ask for a lower interest rate. It works — 70% of cardholders who asked their issuer for a reduced rate in the past year scored a better rate. Cha-ching! | | Fight Inflation — With Your Credit Cards It's no secret that inflation, which reached a whopping 9.1% in June, is silently whacking Americans' budgets. It causes the cost of everything from gas to groceries to skyrocket — while the purchasing power of your money takes a nosedive. In fact, 83% of Americans say that inflation is negatively impacting their budgets, according to a LendingTree survey. While we can't change the prices at the gas pump, we can help put some cash back in your wallet — where it belongs. Our top credit card tips for inflationary times: We'll be back next month with more news and tips to help you reach your money goals. | | | |
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