Credit card debt reaches record levels
Americans are carrying record amounts of credit card debt, and interest rates are near record highs.
Fox – Seattle
Thanks to seasonal time changes, it will be extended by an additional hour on November 2nd. Why not use it to rebuild your household finances?
Personal finance can be daunting. Few consumers look forward to reading their credit reports, buying car insurance, or parsing their bank statements. But some of the smartest financial moves can be made in less than an hour.
That’s the spirit of AARP’s report titled “9 Smart Financial Fixes You Can Make in One Hour.” Published in the October/November issue of AARP The Magazine.
We compiled their reports into our own and featured some of our favorite AARP tips, as well as a few others.
Here are eight economical solutions for those who have an hour to spare on a sleepy Sunday morning.
read credit report
Credit reports are inherently scary. But Ted Rothman, senior industry analyst at Bankrate, says it’s a good idea to check regularly.
A 2024 analysis found that nearly half of credit reports may contain errors. These mistakes can negatively impact your credit score.
Reading your credit report is fairly easy these days. The major credit bureaus offer free access to their AnnualCreditReport.com site.
As you read your report, Rothman said, look for accounts that don’t belong to you, incorrect names or addresses, or anything else you don’t recognize. Report the error to your credit bureau or the company where you hold your account.
freeze your credit
Freezing your credit prevents others from opening accounts in your name. This is a powerful defense against identity theft.
“We can keep the bad guys out,” Rothman said. “This is one of the few proactive steps we can take to protect our identity.”
Freezing your credit is relatively quick and free. US PIRG offers a step-by-step guide.
Apply for a zero annual interest credit card
Are you struggling with credit card debt? Ironically, one of the best ways to pay it off is with another credit card.
A zero APR credit card is a powerful tool for paying off debt. Here’s how it works: Transfer debt from another loan with a higher interest rate to the card. There will then be a promotional period of approximately 12 to 21 months before repayment. During that time, no interest will be charged.
“If used properly, interest-free cards can be a huge boost to your debt repayment efforts,” Rothman said.
Apply for a zero APR card in minutes. However, be aware that consumers with low credit scores may be turned away.
Open a high-yield savings account
One of the simplest solutions in personal finance is to move your savings into a high-yield account.
According to a recent study by Vanguard, more than half of savers earn less than 3% annually.
Inertia prevents many consumers from demanding higher rates. However, many online banks offer 3.5% to 4% on high-yield savings, according to a summary by NerdWallet and Bankrate.
“I think the important step is to consider different options and make sure you’re getting the best APY (annual yield),” said Sam Taub, chief investment writer at NerdWallet.
Buy car insurance at a discount
Car insurance premiums are expected to rise 7.5% in 2025, according to MarketWatch Guides.
That’s why you should think twice before renewing your insurance policy, says Daniel Bolz, AARP’s personal finance editor.
To speed things up, collect quotes from multiple insurance companies. Comparison sites like Insurify, Policygenius and The Zebra can do that, Boltz said.
When shopping, “try to compare apples to apples,” Boltz says. Policies differ regarding coverage limits and deductibles.
You can also save money by adjusting your policy. You can increase your deductible. Collision coverage for older cars can be omitted. In previous reports, we covered these and other hacks to save money on car insurance.
Find unclaimed assets
Millions of Americans have unclaimed cash in lost or forgotten accounts, such as old bank accounts, uncashed payroll checks, and even misplaced 401(k) accounts.
Stop by Missing Money, your one-stop clearinghouse for unclaimed property, to find old bank accounts and other lost funds.
For forgotten 401(k) money, check out the National Registry of Unclaimed Retirement Benefits.
Audit your subscription
Many consumers spend money every month on subscriptions they don’t use. Signing up for a streaming service or online news site is easy. It’s just as easy to forget it.
“The average American subscribes to about a dozen media outlets,” Boltz said. “In many cases, you may end up paying for a subscription that you no longer use.”
A recent CNET study found that the average American wastes about $200 a year on unused subscriptions.
Rothman said take a few minutes to review the past 30 days of activity on your account. Find forgotten subscriptions. Follow the instructions to cancel.
Solicit 401(k) contributions
Financial planners say saving more for retirement is a way to reward yourself for the future.
Many Americans are already well on their way to saving for retirement. 401(k) savings rates recently reached an all-time high.
But most of us don’t save as much as we could. The 401(k) contribution limit is $23,500 in 2025, with higher limits for older savers. It’s very easy to increase your contribution by 1-2 percentage points.
“If you can save 10 percent, can you save 11 percent?” Rothman said. “The important thing is that you probably won’t even miss out on money, especially if you do it gradually.”
