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    How to Pay Off Credit Card Debt

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    A new report finds that people are spending more on their cards and paying down less. Financial experts offer tips for reducing that debt, starting with looking at your spending habits.Credit card debt is weighing on many Americans.The share of credit card holders making just the minimum monthly payment is at a 12-year high, the Federal Reserve Bank of Philadelphia reported last month. People are spending more on their cards but paying off less, increasing the amount of debt carried month to month and paying more in interest. And more people are late in paying their monthly card bill.“Credit card performance is showing signs of consumer stress,” the bank’s report said.Adding to the stress is the fact that interest rates on credit cards have risen in recent years. The average rate was more than 21 percent at the end of last year, the Federal Reserve said, compared with about 15 percent in 2019.So whether you observe “frugal” February or try a “no spend” challenge, now is a good time to make a plan to chip away at your balances.Right after the new year, “people have so many things on their mind,” said Charlestien Harris, a financial counselor in Clarksdale, Miss., with Southern Bancorp Community Partners. “By February, a person has a chance to settle down. You can begin to focus more and name a goal or two.”If you’re worried about your card debt, there are options that can help you get it under control — such as transferring your balance to a lower-rate credit card, if you qualify. But the first step is to get a clear picture of your spending habits, said Daniel Yerger, a fee-only financial planner in Longmont, Colo.“Before you consolidate or refinance the debt, you have to address the ‘why’ of what’s happening,” Mr. Yerger said. If you are consistently spending beyond your means, moving the debt to a new card isn’t likely to help in the long run. “We can shuffle it around,” he said, “but you want to get ahead of it.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      BlackRock Acquires HPS, a Major Lender of Private Credit

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      The world’s largest investor is buying HPS, a major provider of private credit, for $12 billion.BlackRock, the world’s largest asset manager, is known for its heft in the public markets, particularly through its iShares exchange-traded funds.But this year, BlackRock has been aggressively claiming a major foothold in the private markets. On Tuesday, it made its latest push, announcing a deal to buy HPS Investment Partners — a firm that specializes in making private loans to companies — for roughly $12 billion.Buying HPS, which manages $148 billion in investor money, would fundamentally reshape almost any other financial firm in the world. For BlackRock, which manages about $11.5 trillion for its clients, that figure is just a small percentage of its overall asset base.Still, the deal to buy HPS, after two other significant private-market transactions this year, is helping answer a question that BlackRock’s own investors have been asking: With so much money already, where can BlackRock grow?Early this year, BlackRock spent roughly $12.5 billion to acquire Global Infrastructure Partners, a major investor in airports and data centers across the globe. In June, it announced a $3 billion deal to buy Preqin, a major data provider for the private markets.The HPS deal will make BlackRock one of the five largest providers of private credit in the world.Private credit is a corner of finance that has exploded in recent years. A number of nonbank investment firms, including HPS, Blue Owl and Ares, have become major lenders to large, typically highly indebted companies. In doing so, they’ve taken market share away from major banks.In the past decade, this private-credit market has grown to about $2 trillion, more than 10 times its size in 2009. In its news release announcing Tuesday’s deal, BlackRock predicted that the market would more than double to $4.5 trillion by 2030.BlackRock’s chief executive and chairman, Laurence D. Fink, said investors were increasingly looking for a mix of both private debt and publicly traded bonds. “The blending of public and private credit is a standard for long-term durable fixed income portfolios,” he said on a conference call on Tuesday.Investors appeared to like the deal, sending BlackRock’s stock up nearly 2 percent Tuesday. This year, its stock has jumped 30 percent, outperforming the S&P 500, which is up about 27 percent.While most analysts, including Glenn Schorr at Evercore ISI, cheered the deal, Mr. Schorr offered a note of caution on BlackRock’s recent spate of deal-making: “It does come with execution risk as money, power and integration issues” arise. More

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      Boeing Seeks to Line Up Billions in Financing as Strike Goes On

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      The aerospace giant said it could raise as much as $25 billion in debt or equity over the next three years, including a $10 billion line of credit.Boeing on Tuesday announced steps to improve its financial position as costs mounted and a strike by its largest union entered its second month.In two regulatory filings, the company said that it could raise as much as $25 billion by selling debt or stock over the next three years and that it had entered into a $10 billion credit agreement with a group of banks, which it has not yet drawn on.“These are two prudent steps to support the company’s access to liquidity,” the company said in a statement. The banks are BofA Securities, Citibank, Goldman Sachs Lending Partners and JPMorgan Chase.The moves come days after Boeing revealed about $5 billion in new costs and announced a restructuring that included plans to cut 17,000 jobs, or 10 percent of its work force.The strike, which began a month ago, is costing the company tens of millions of dollars a day, according to various estimates. Most of the workers who walked out are involved in production of commercial airplanes, bringing much of that work to a virtual halt, though one major airplane program is manufactured at a nonunion factory in South Carolina.Talks between the company and the union representing 33,000 striking employees, the International Association of Machinists and Aerospace Workers, broke down last week, with Boeing retracting its latest contract offer and each side blaming the other for intransigence.Julie Su, the acting labor secretary, visited Seattle on Monday to meet with Boeing and the union, the union said in a statement.The strike is very likely costing Boeing about $1.3 billion in capital a month, according to calculations by Sheila Kahyaoglu, an analyst at Jefferies, the investment bank. Given those costs and its need for more debt, raising $10 billion by selling new shares would provide the company “considerable flexibility,” she added.Last week, S&P Global Ratings also said it was considering lowering Boeing’s credit rating, depending on how long the strike lasts, to junk status, a downgrade that would raise Boeing’s borrowing costs. The company’s debt totals nearly $58 billion, up from about $9 billion a decade ago.And the chief executive of one of the world’s largest airlines, Tim Clark of Emirates, said recently that Boeing could be forced to seek bankruptcy protection if it was not able to issue more shares to improve its financial position. “Unless the company is able to raise funds through a rights issue, I see an imminent investment downgrade with Chapter 11 looming on the horizon,” Mr. Clark told The Air Current, an aerospace news publication. More

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      Chicken Soup for the Soul Entertainment Files Chapter 11

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      The parent company of Redbox, which rents movies through kiosks, filed for Chapter 11 bankruptcy protection on Friday.Chicken Soup for the Soul Entertainment, the parent company of the movie rental company Redbox, which is known for its distinctive red kiosks, filed for Chapter 11 bankruptcy protection on Friday.In the filing, Chicken Soup listed debts of about $970 million, and total assets of about $414 million. It owes millions to entertainment and media companies, including Universal Studios, Sony Pictures and BBC Studios Americas, as well as some retailers, such as Walgreens and Walmart, according to court filings.Chicken Soup for the Soul was founded in 1993 by two motivational speakers, Jack Canfield and Mark Victor Hansen. The company’s inspirational book series, with titles like “From Lemons to Lemonade” and “Angels Among Us,” contains collections of stories for specific audiences, for example new mothers or cat lovers.Its original book, published more than 30 years ago, dispensed life advice and stories of overcoming obstacles with the hope that it would heal readers’ souls just as “chicken soup has a healing effect on the body of the ill.”The company, which has published more than 300 titles, has sold more than 500 million copies worldwide.Chicken Soup for the Soul Entertainment is separate from its book-publishing arm, which is unaffected by the bankruptcy filing. It was not immediately clear whether the Chapter 11 filing would affect the Redbox operation. The company declined to comment on Sunday.In 2022, Chicken Soup for the Soul Entertainment acquired Redbox, a business founded in 2002 and recognized for its bright red DVD rental kiosks outside supermarkets and pharmacies. Redbox has about 27,000 kiosks across the United States.William J. Rouhana Jr. became the company’s chief executive in 2008 and ran the company with his wife, Amy Newmark, the publisher and editor in chief of the book division.Mr. Rouhana tried to expand the company into different products, including a line of soups, which ultimately failed. He founded the entertainment division of Chicken Soup for the Soul in 2016.The company requested relief to pay its employees, which it has been unable to do “for the two-week period ending on June 14, 2024.” Chicken Soup for the Soul Entertainment has about 1,000 full- and part-time workers.The company reported $636 million in net income loss in 2023, compared with $111 million in 2022, according to a filing with the U.S. Securities and Exchange Commission. At the time that Chicken Soup for the Soul acquired Redbox, the movie rental company had more than $300 million in debt. More

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      $29 Trillion: That’s How Much Debt Emerging Nations Are Facing

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      A decades-long crisis is getting worse, and now dozens of nations are spending more on interest payments than on health care or education.The Vatican’s meeting on the global debt crisis last week was not quite as celebrity-studded as the one that Pope John Paul II presided over 25 years ago, when he donned sunglasses given to him by Bono, U2’s lead singer.But the message that the current pope, Francis, delivered this time — to a roomful of bankers and economists instead of rock stars — was the same: The world’s poorest countries are being crushed by unmanageable debt and richer nations need to do more to help.Emerging nations are contending with a staggering $29 trillion in public debt. Fifteen countries are spending more on interest payments than they do on education, according to a new report from the United Nations Conference on Trade and Development; 46 spend more on debt payments than they do on health care.Unmanageable debts have been a recurring feature of the modern global economy, but the current wave may well be the worst so far. Overall, government debt worldwide is four times higher than what it was in 2000.Government overspending or mismanagement is one cause, but global events out of most nations’ control have pushed their debt problems into overdrive. The Covid-19 pandemic slashed business profits and worker incomes at the same time health care and relief costs were increasing. Violent conflicts in Ukraine and elsewhere contributed to rising energy and food prices. Central banks raised interest rates to combat soaring inflation. Global growth slowed.Pope Francis earlier this week in Rome.Fabio Frustaci/EPA, via ShutterstockWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Alzheimer’s Takes a Financial Toll Long Before Diagnosis, Study Finds

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      New research shows that people who develop dementia often begin falling behind on bills years earlier.Long before people develop dementia, they often begin falling behind on mortgage payments, credit card bills and other financial obligations, new research shows.A team of economists and medical experts at the Federal Reserve Bank of New York and Georgetown University combined Medicare records with data from Equifax, the credit bureau, to study how people’s borrowing behavior changed in the years before and after a diagnosis of Alzheimer’s or a similar disorder.What they found was striking: Credit scores among people who later develop dementia begin falling sharply long before their disease is formally identified. A year before diagnosis, these people were 17.2 percent more likely to be delinquent on their mortgage payments than before the onset of the disease, and 34.3 percent more likely to be delinquent on their credit card bills. The issues start even earlier: The study finds evidence of people falling behind on their debts five years before diagnosis.“The results are striking in both their clarity and their consistency,” said Carole Roan Gresenz, a Georgetown University economist who was one of the study’s authors. Credit scores and delinquencies, she said, “consistently worsen over time as diagnosis approaches, and so it literally mirrors the changes in cognitive decline that we’re observing.”The research adds to a growing body of work documenting what many Alzheimer’s patients and their families already know: Decision-making, including on financial matters, can begin to deteriorate long before a diagnosis is made or even suspected. People who are starting to experience cognitive decline may miss payments, make impulsive purchases or put money into risky investments they would not have considered before the disease.“There’s not just getting forgetful, but our risk tolerance changes,” said Lauren Hersch Nicholas, a professor at the University of Colorado School of Medicine who has studied dementia’s impact on people’s finances. “It might seem suddenly like a good move to move a diversified financial portfolio into some stock that someone recommended.”Tell us about your family’s challenges with money management and Alzheimer’s. More

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      China’s First Quarter Results Show Growth Propelled by Its Factories

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      China’s big bet on manufacturing helped to counteract its housing slowdown in the first three months of the year, but other countries are worried about a flood of Chinese goods.The Chinese economy grew more than expected in the first three months of the year, new data shows, as China built more factories and exported huge amounts of goods to counter a severe real estate crisis and sluggish spending at home.To stimulate growth, China, the world’s second-largest economy, turned to a familiar tactic: investing heavily in its manufacturing sector, including a binge of new factories that have helped to propel sales around the world of solar panels, electric cars and other products. But China’s bet on exports has worried many foreign countries and companies. They fear that a flood of Chinese shipments to distant markets may undermine their manufacturing industries and lead to layoffs.On Tuesday, China’s National Bureau of Statistics said the economy grew 1.6 percent in the first quarter over the previous three months. When projected out for the entire year, the first-quarter data indicates that China’s economy was growing at an annual rate of about 6.6 percent.“The national economy made a good start,” said Sheng Laiyun, deputy director of the statistics bureau, while cautioning that “the foundation for stable and sound economic growth is not solid yet.”Retail sales increased at a modest pace of 4.7 percent compared with the first three months of last year, and were particularly weak in March. We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Car Deals Are Easier to Find but Lenders Are Tightening Their Terms

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      It has become harder for some borrowers to get affordable car loans as banks and dealerships face a rising number of delinquencies.New cars are more available this spring, and manufacturers have even begun offering deals to entice buyers.But at the same time, lenders have been tightening the terms of car loans as they deal with a rising number of delinquencies. That has made it harder for some people to get affordable loans.Access to auto loans for both new and used cars was generally worse in January than in December and down year over year, according to Dealertrack, a Cox Automotive service that tracks credit availability based on factors like loan approvals, terms and down payments. The impact was seen at banks, credit unions and dealerships.“We are seeing credit access tighten in all channels,” said Sean Tucker, a senior editor at Kelley Blue Book, Cox’s car research and sales website.Subprime borrowers in particular — consumers with the lowest credit scores — may face challenges finding financing, Mr. Tucker said. The share of subprime new-car loans has fallen to about 6 percent, roughly half what it was before the pandemic.Borrowers with strong credit are especially attractive to lenders. The average credit score for new-car shoppers taking out a loan or lease rose to 743 at the end of 2023, up from 739 a year earlier, according to fourth-quarter data from Experian Automotive, which tracks car financing. For used cars, the average score was 684, up from 681. (Experian’s report uses VantageScore 3.0 scores, ranging from 300 to 850; scores of 661 and above generally are eligible for favorable terms.)We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Looking for a Lower Credit Card Interest Rate? Good Luck.

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      Comparison sites often emphasize the big banks’ offerings even though smaller banks and credit unions typically charge significantly less.Credit card debt is rising, and shopping for a card with a lower interest rate can help you save money. But the challenge is finding one.Smaller banks and credit unions typically charge significantly lower interest rates on credit cards than the largest banks do — even among customers with top-notch credit, the Consumer Financial Protection Bureau reported last week.But online card comparison tools tend to emphasize cards from larger banks that pay fees to the sites when shoppers apply for cards, said Julie Margetta Morgan, the bureau’s associate director for research, monitoring and regulations. “It’s pretty hard to shop for a good deal on a credit card right now.”For cardholders with “good” credit — a credit score of 620 to 719 — the typical interest rate charged by big banks was about 28 percent, compared with about 18 percent at small banks, the report found.For those with poor credit — reflected by a score of 619 or lower — large banks charged a median rate of more than 28 percent, compared with about 21 percent at small banks. (Basic credit scores range from 300 to 850.)The variation in the rates charged by big banks and smaller ones can mean a difference, on average, of $400 to $500 a year in interest for cardholders with an average balance of $5,000, the bureau found.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More