Happy New Year 2025

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Americans’ credit card and household debt reach new record highs

A ‘Mornings with Maria’ panel provides their reactions to the December jobs report, detailing the impact it may have on the U.S. economy.

Americans’ household debt levels, including credit card debt, rose to new all-time highs in the fourth quarter of 2024, according to a report by the Federal Reserve Bank of New York.

The report showed that overall household debt increased by $93 billion to $18.04 trillion at the end of 2024, an all-time high. Credit card balances rose by $45 billion from the prior quarter to reach $1.21 trillion at the end of December, which is also a record high.

Delinquency rates ticked higher by 0.1 percentage points from the prior quarter to 3.6% of outstanding debt in some stage of delinquency, with delinquency transition rates steady for nearly all types of debt except for credit cards – which had a small uptick in transitions from current to delinquent. Serious delinquency, defined as 90 or more days past due, moved higher for auto loans, credit cards and HELOC balances but was stable for mortgages.

The New York Fed noted that while the report shows Americans are generally faring well in terms of managing their household debt, there are signs that rising prices and elevated interest rates are causing issues for some auto loan borrowers.

WHAT WOULD BE THE IMPACT OF A CREDIT CARD INTEREST RATE CAP?

Americans’ household debt reached a new record in the last quarter of 2024. (Spencer Platt/Getty Images / Getty Images)

“Overall, consumers are in pretty good shape in terms of the household debt landscape, largely driven by stable balances and solid performance in mortgage loans,” the New York Fed’s economic researchers wrote in a post accompanying the report.

“However, for auto loans, higher car prices combined with higher interest rates have driven monthly payments upward and have put pressure on consumers across the income and credit score spectrum,” they wrote. “The episode of rapidly rising car prices has had heterogeneous impacts on borrowers, who have shifted between used and new cars as well as between loans and leases.”

JOSH HAWLEY, BERNIE SANDERS PROPOSE CAPPING CREDIT CARD INTEREST RATES AT 10%

Americans’ credit card debt reached an all-time high at the end of 2024. (iStock / iStock)

The decline in used car prices could strain some borrowers who bought a used car when prices were higher, potentially leaving them underwater on those loans, the New York Fed said.

“These shifts have put additional pressure on lower-income and lower-credit-score borrowers who may have had to opt for higher-price used cars over the last few years,” the researchers wrote.

US CREDIT CARD DEFAULTS SOAR TO HIGHEST LEVEL IN 14 YEARS

Serious delinquencies for mortgages ticked lower at the end of 2024. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)

“Used car prices have since declined from the peak, potentially leaving some borrowers underwater on those vehicles and creating potential repayment challenges,” they added. “At the same time, the decline in auto prices could imply that the more recently originated vintages of auto loans may fare better as those loans age.”

The number of consumers who had a bankruptcy notation added to their credit record was 123,000 in the fourth quarter according to bank data, a decline from the third quarter.

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Consumers with a third-party collection noted on their credit record was “relatively stable” in the fourth quarter, the New York Fed said.

February 18, 2025
What would be the impact of a credit card interest rate cap?

A ‘Mornings with Maria’ panel provides their reactions to the December jobs report, detailing the impact it may have on the U.S. economy.

New legislation in Congress that was introduced by an unlikely duo of senators seeks to impose a credit card interest rate cap, with the potential for such a bill becoming law aided by President Donald Trump’s campaign pledge on the subject.

Sens. Bernie Sanders, I-Vt., and Josh Hawley, R-Mo., introduced legislation that would cap credit card interest rates at 10% for five years after the bill’s enactment. The two populist senators touted the measure as a means of fulfilling a campaign pledge made by Trump’s campaign last year.

The bill’s introduction coupled with White House support for the proposal could allow for the idea to gain traction, although there would be consequences to the policy and it still faces a long road to enactment.

“Credit card rate caps have always been the longest of long shots because there’s so many people lined up against it for various reasons, but it shouldn’t surprise anybody that a rate cap is enormously popular,” Matt Schulz, chief credit analyst at LendingTree, told FOX Business.

JOSH HAWLEY, BERNIE SANDERS PROPOSE CAPPING CREDIT CARD INTEREST RATES AT 10%

Credit card interest rates could be capped at 10% under a bill offered by Sanders and Hawley. (iStock)

Schulz said that LendingTree conducted a poll that showed respondents continued to support the idea of a credit card interest rate cap even if it means restricted access to credit and diminished credit card rewards.

“It’s still a long shot, but there’s no question that the idea politically kind of has some wind at its back right now, and if it’s ever going to happen, this may be as likely a time as ever for it to happen,” he said.

Schulz added that credit cards offered by federally chartered credit unions are capped at 18%, which do still offer rewards but aren’t as lucrative as those offered by larger banks. He went on to say that a cap at that level or 20% would be significant for consumers dealing with credit card debt while potentially having a better chance at becoming reality.

US CREDIT CARD DEFAULTS SOAR TO HIGHEST LEVEL IN 14 YEARS

Several leading trade groups representing the financial services industry sent a letter to Hawley and Sanders outlining their opposition to the duo’s proposed 10% credit card interest rate cap. Signatories to the letter included the Consumer Bankers Association, America’s Credit Unions, American Financial Services Association, Bank Policy Institute, Independent Community Bankers of America, American Bankers Association and the National Bankers Association.

The letter cited economic research showing that government price setting on APR caps hurts consumers, in part because it “would eliminate access to credit cards for millions of consumers and drive them to sources of credit which are far more costly and less regulated.”

Sen. Bernie Sanders, I-Vt., accused financial institutions of “extortion” and “loan sharking” for having credit card interest rates over 25%. (Kevin Dietsch/Getty Images / Getty Images)

The groups noted the state of Illinois imposed a rate cap, which the Federal Reserve researched and found was responsible for reducing the number of loans to subprime borrowers by 38 percent. They also referenced a study by researchers at Dartmouth who found Oregon’s 36% all-in APR cap was responsible for “harming, not helping, consumers on average” and “restricting access caused deterioration in the overall financial condition of Oregon households.”

“As responsible and well-regulated financial institutions, we share the goals of reducing the cost of consumer credit and increasing financial inclusion. Unfortunately, the 10 percent rate cap proposed in this legislation would stifle our shared financial inclusion goals, reduce access to credit and push consumers to far more costly and less regulated lenders,” the groups wrote.

CONSUMER WATCHDOG WARNS COMPANIES AGAINST DEVALUING CREDIT CARD REWARDS, LAUNCHES TOOL TO AVOID SCAMS

Sen. Josh Hawley, R-Mo., said high credit card interest rates are “exploitative” and capping them would provide “meaningful relief.” (Tom Williams-Pool/Getty Images / Getty Images)

While it’s unclear whether Congress will consider legislation capping credit card interest rates, Schulz noted that there are still steps consumers can take to ease their financial burden.

“The good news is that there are plenty of things you can do yourself to lower your interest rates without waiting for Congress to come in as the cavalry in lowering rates. You can get a 0% balance transfer credit card if you have good credit. You could look at a low interest personal loan, that’s a good option if you can’t get a 0% balance transfer card,” he said.

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“You can even call your credit card issuer and ask for a lower rate. LendingTree did a survey last year where we found that 76% of people who asked for a lower interest rate on one of their credit cards got one, and the average reduction was about 6 percentage points which is really significant,” Schulz said. “So it’s absolutely worth the call, because that sort of success rate shows that it’s not just people with 800 credit scores and long track records who are getting their way – it’s regular folks too who really need the help.”

February 11, 2025
Josh Hawley, Bernie Sanders propose capping credit card interest rates at 10%

A ‘Mornings with Maria’ panel provides their reactions to the December jobs report, detailing the impact it may have on the U.S. economy.

A new bipartisan bill introduced by a pair of senators would cap credit card interest rates in an effort to help consumers and fulfill one of President Donald Trump’s campaign promises.

Sens. Josh Hawley, R-Mo., and Bernie Sanders, I-Vt., introduced legislation that would cap credit interest rates at 10% immediately upon the bill’s enactment into law. The cap would then remain in effect for five years.

“During the campaign, President Trump pledged to cap credit card interest rates at 10%,” Sanders said in a statement. “Today, I am proud to be introducing bipartisan legislation with Senator Hawley to do just that.”

“When large financial institutions charge over 25% interest on credit cards, they are not engaged in the business of making credit available. They are engaged in extortion and loan sharking,” Sanders added. “We cannot continue to allow big banks to make huge profits ripping off the American people.”

US CREDIT CARD DEFAULTS SOAR TO HIGHEST LEVEL IN 14 YEARS

Credit card interest rates would be capped at 10% for five years under the Sanders-Hawley bill. (iStock / iStock)

Hawley said in a statement that capping credit card interest rates at 10% like Trump campaigned on “is a simple way to provide meaningful relief to working people.”

“Working Americans are drowning in record credit card debt while the biggest credit card issuers get richer and richer by hiking their interest rates to the moon,” Hawley added. “It’s not just wrong, it’s exploitative. And it needs to end.”

Sen. Josh Hawley, R-Mo., said that credit card issuers are being “exploitative” with interest rates. (Tom Williams-Pool/Getty Images / Getty Images)

In the last Congress, Hawley introduced a bill to cap credit card interest rates at 18%, though it died in committee without receiving a vote.

The press release from Sanders and Hawley noted that in September the Trump campaign said: “President Trump has promised to cap interest rates at 10% to provide temporary and immediate relief for hardworking Americans who are struggling to make ends meet and cannot afford hefty interest payments on top of the skyrocketing costs of mortgages, rent, groceries and gas.”

HOW CREDIT CARD SWIPE FEES ARE AFFECTING SHOPPERS

Sen. Bernie Sanders, I-Vt., accused financial institutions with high credit card interest rates of “loan sharking.” (Kevin Dietsch/Getty Images / Getty Images)

Critics of proposals to cap credit card interest rates note that it would likely cause financial institutions to be more restrictive in extending credit and offering credit cards to borrowers with relatively poor credit scores, and potentially by reducing the credit card rewards they offer.

“There’s no question that a credit card rate cap would have a massive impact on credit cardholders beyond just reducing interest payments,” said Matt Schulz, chief credit analyst at LendingTree. “Banks have been vocal that a rate cap, even one much smaller than the 10% cap backed by President Trump, would lead to a dramatic reduction in credit card rewards and even to reduced access to credit for those with imperfect credit.”

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“However, it is also clear that most Americans are willing to accept both of those consequences if it means capping rates,” Schulz added, noting that a LendingTree survey from December found that two-thirds of cardholders would support a rate cap, even if it results in reduced rewards, while six in 10 support it even if it restricts access to credit for many.

February 4, 2025
Don’t let this credit card fraud nightmare happen to you

Credit card fraud has been on the rise in recent years.

The Federal Trade Commission’s most recent database indicates that 416,582 cases of credit card fraud were reported in 2024, making it one of the most common forms of identity theft. You know you’ve been a victim of this fraud when you notice unauthorized transactions on your credit card bill.

These transactions are usually below $100 to avoid detection. However, sometimes they can exceed $1,000. One such incident happened with Martin from Martinsville, Virginia, when he was randomly charged $1,095 in Hong Kong.

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“Hello, I recently received a fraud alert from my credit card company that said that there was a $1,095 charge on my credit card in Hong Kong. I use my iPad and Safari browser to buy online. Can you please explain how this could happen? By the way, my credit card company canceled my credit card and will send me a new Mastercard in the mail, and I’m not responsible for the charges on my credit card. What can I do in the future to prevent this from happening again?”

I’m sorry to hear about the fraudulent charge on your credit card, Martin. It’s good that your credit card company is handling it and that you’re not responsible for the charges. For future reference, I’ll be discussing how this could have happened and how to stay safe.

A woman using her credit card to shop online   (Kurt “CyberGuy” Knutsson)

How credit card fraud happens

Credit card fraud can happen in several ways, often without you even realizing it. One common method is when fraudsters get hold of your card information through data breaches at online stores or banks, which means your details get leaked without your knowledge.

Another sneaky tactic is phishing, where scammers trick you into giving away your card info by posing as legitimate companies via emails or fake websites.

There’s also the risk of “card skimming,” where devices at ATMs or gas stations secretly capture your card details when you swipe it. In some cases, fraudsters might also exploit weak security on public Wi-Fi networks or compromised apps to access your information while you’re shopping online.

A man using his credit card to shop on his phone   (Kurt “CyberGuy” Knutsson)

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Credit card fraud is way too common

A report from Security.org reveals that 52 million Americans experienced credit card fraud in 2023, a figure even higher than the one reported by the FTC. With four out of five American adults owning at least one credit card, the report found that three in five cardholders have faced unauthorized charges — an estimated 128 million victims. Even more concerning, 75% of these victims reported having their credit card information stolen more than once.

The typical unauthorized transaction is around $100, which adds up to approximately $5 billion in criminal purchases each year. Interestingly, most unauthorized transactions involve credit cards that weren’t physically lost or stolen, highlighting the growing risks of online fraud and data breaches.

A woman using her credit card to pay   (Kurt “CyberGuy” Knutsson)

THE BEST BALANCE TRANSFER CREDIT CARDS 2025

The need for identity theft protection

Data breaches are one of the main ways credit card fraud happens. Hackers often get unauthorized access to sensitive information stored by businesses or institutions. When a retailer, financial institution or online store experiences a data breach, the hackers usually go after the payment systems where customer credit card details are kept.

If these systems aren’t properly secured, hackers can grab things like credit card numbers, expiration dates and sometimes even security codes. Once they have that info, they can either use it themselves or sell it to others.

But it’s not just credit card information at risk. Data breaches can also expose personal details like names, email addresses and phone numbers. Scammers can then use this stolen info to launch phishing attacks, pretending to be trusted companies and tricking you into giving away more sensitive information.

WHAT IS ARTIFICIAL INTELLIGENCE (AI)?

This is why identity theft monitoring is so important. Identity theft companies can monitor personal information like your Social Security number, phone number and email address and alert you if it is being sold on the dark web or being used to open an account. They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals.

One of the best parts of some identity theft protection services is that they have identity theft insurance of up to $1 million to cover losses and legal fees and a white glove fraud resolution team where a U.S.-based case manager helps you recover any losses. See my tips and best picks on how to protect yourself from identity theft.

Illustration of a credit card crook   (Kurt “CyberGuy” Knutsson)

HOW TO FIGHT BACK AGAINST DEBIT CARD HACKERS WHO ARE AFTER YOUR MONEY

10 ways to protect yourself from credit card fraud

1. Notify your credit card issuer immediately: If you notice fraudulent charges on your credit card, start by calling the number on the back of your credit card. From there, you should get more detailed information on what to do next.

2. Monitor your statements regularly: One of the best ways to catch credit card fraud early is to keep an eye on your statements. Review your transactions regularly to spot any unfamiliar charges. The sooner you notice something suspicious, the quicker you can report it to your credit card company and prevent further damage.

3. Regularly check your credit report: In addition to monitoring your credit card statements, periodically review your credit report to catch any unauthorized accounts opened in your name.

4. Use strong, unique passwords: Always use strong, unique passwords for your online accounts, especially those that store payment details. Avoid using easily guessable information, and consider using a password manager to store and generate secure passwords. This reduces the chances of fraudsters accessing your accounts.

5. Use credit card alerts: Set up transaction alerts with your credit card company. This way, you’ll receive a notification via email or text for every transaction made with your card. If you receive an alert for a purchase you didn’t make, you can take immediate action to report it and prevent further charges.

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6. Be Cautious with public Wi-Fi: Avoid making purchases or entering sensitive information when connected to public Wi-Fi networks because they’re often not secure. If you need to make an online purchase while on the go, consider using a VPN (Virtual Private Network) to encrypt your connection and keep your credit card details safe from hackers. For the best VPN software, see my expert review of the best VPNs for browsing the web privately on your Windows, Mac, Android and iOS devices

7. Don’t store credit card info on browsers and websites: Storing your credit card information on browsers or websites can make it convenient, but it also exposes you to a higher risk of fraud. If your browser or the website’s security gets compromised, hackers could gain access to your saved card details. To stay safe, avoid saving your credit card information and manually enter it each time you make a purchase. If a site offers to save your details for future use, think twice before accepting. It’s better to take the extra step to enter your information each time, ensuring your data stays secure.

8. Use EMV chip technology: When making in-person purchases, always use the chip reader instead of swiping your card. Chip technology provides an extra layer of security against fraud.

9. Be wary of phishing attempts and have strong antivirus software: Be cautious of unsolicited emails, texts or phone calls asking for your credit card information. Legitimate companies typically don’t request sensitive information through these channels. The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android and iOS devices.

10. Keep your card in sight: When using your card in restaurants or stores, try to keep it within view. This reduces the risk of someone copying your card details.

HOW TO REMOVE YOUR PRIVATE DATA FROM THE INTERNET

Kurt’s key takeaway

It’s clear that credit card fraud is more prevalent than ever, affecting millions of Americans each year. The good news is that there are effective steps to protect yourself from becoming a victim. By staying vigilant and employing best practices — like monitoring your statements and using strong passwords — you can significantly reduce your risk. Remember, awareness and proactive measures are your best defenses against credit card fraud.

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Have you or someone you know ever experienced credit card fraud, and how did it impact you? Let us know by writing us at Cyberguy.com/Contact

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Kurt “CyberGuy” Knutsson is an award-winning tech journalist who has a deep love of technology, gear and gadgets that make life better with his contributions for Fox News & FOX Business beginning mornings on “FOX & Friends.” Got a tech question? Get Kurt’s free CyberGuy Newsletter, share your voice, a story idea or comment at CyberGuy.com.

January 26, 2025
Pirates ‘bummed’ after young collector, who scored one-of-a-kind Paul Skenes card, declines team’s offer

Earlier this week, a young collector pulled the coveted autographed MLB debut patch card of Paul Skenes from the market.

An 11-year-old collector from Southern California, who nabbed a one-of-kind baseball card featuring the Pittsburgh Pirates star pitcher, decided to turn down a trade offer from the MLB franchise.

The card was featured in the 2024 Topps Chrome Update set. On Friday, the trading card and collectible manufacturer confirmed the collector had “chosen to send the card to auction with @FanaticsCollect instead,” Topps wrote in an Instagram post.

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Paul Skenes of the Pittsburgh Pirates throws a pitch against the Chicago Cubs at Wrigley Field May 17, 2024, in Chicago. (Nuccio DiNuzzo/Getty Images)

The Pirates offered a package of perks in exchange for the card. A pair of premium Pirates season tickets for three decades, an opportunity to play a softball game on the field, a meet and greet with Skenes and autographed jerseys were among offerings from the team.

LIVVY DUNNE EXPLAINS AWKWARD MOMENT WITH PAUL SKENES AFTER HE WON NL ROOKIE OF THE YEAR

LSU gymnast Livvy Dunne, who is dating Skenes, also offered an incentive to the owner of the card.

Paul Skenes and Olivia Dunne on the set of ESPN “College GameDay” at the LSU Quad Nov. 9, 2024, in Baton Rouge. (LSU Athletics/University Images via Getty Images)

“Let’s raise the stakes…the person who finds this card can sit with me at a Pirates game in my suite,” Dunne wrote in a post to her Instagram story.

While the collector wrote in a journal entry shared by Topps that nabbing the card was a “dream come true,” apparently that dream did not include spending time over the next 30 years attending games at PNC Park.

The Pirates admitted they were “bummed” after learning of the collector’s decision but offered to have the fan at a game sometime during the 2025 season.

A view of PNC Park as the Pittsburgh Pirates host the Philadelphia Phillies June 21, 2024, in Pittsburgh. (Charles LeClaire/USA Today Sports)

“Well…we’re bummed that we won’t be seeing you behind home plate for 30 seasons. But we’d still love to bring you to Pittsburgh for a special day at PNC Park this season,” the team posted on X.

Fanatics Collect, which will handle the auctioning of the card in March, said it will donate its proceeds from the sale to fire relief funds in the Los Angeles area.

Skenes delivered a season to remember in 2024, finishing 11-3 with a 1.96 ERA and 170 strikeouts. Before winning the National League Rookie of the Year Award, he was named to the MLB All-Star team. Skenes was the top pick in the 2023 MLB Draft and made his big league debut in May 2024.

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Rookies have worn MLB debut patches on their jerseys since 2023. Topps acquired the patches and created the unique cards. The card could hold pretty high value considering the potentially bright future ahead for the 22-year-old, who finished third in NL Cy Young Award voting.

Skenes said over the weekend he hasn’t thought about the potential of signing a long-term contract to remain with the Pirates, saying instead his focus is on helping the Pirates take a step toward contending in 2025. He is eligible for free agency after the 2029 season.

The Associated Press contributed to this report.

Follow Fox News Digital’s sports coverage on X, and subscribe to the Fox News Sports Huddle newsletter.

Chantz Martin is a sports writer for Fox News Digital.

January 25, 2025