Smart Spending Tips discusses the rise in missed debt payments and growing concerns about credit access and financial stability. A recent survey found a big jump in the probability that consumers will miss a minimum debt payment over the next three months. If that happens, it could disrupt the economy, tighten credit availability, and significantly impact credit scores. Beyond these big-picture effects, missed payments can create a financial crisis for any household. Rather than wait for trouble to escalate, it is better to take action before it gets out of control. Missed debt payment risk highest since April 2020 The…

Smart Spending Tips explains how a good credit score can save money and improve your personal financial outlook. 1. Lower interest rates on loans One of the clearest benefits of strong credit is qualifying for lower interest rates. Borrowers with high credit scores generally receive better loan offers, potentially saving thousands over the life of a loan. For example, someone with excellent credit could pay significantly less on a mortgage or auto loan than someone with fair or poor credit. 2. Reduced insurance premiums Insurance companies often review credit scores when setting your premiums. Maintaining good credit may lead to…

Smart Spending Tips examines how falling consumer confidence is shaping financial decisions. Consumers are much less confident than they were a couple of months ago. How they act on their growing fears could determine the economy’s direction. Every month, the University of Michigan publishes an Index of Consumer Sentiment. As the name suggests, this measures how consumers feel about the economy and its impact on their finances. Economists and investors closely watch this index to see whether consumers are confident, fearful, or somewhere in between. The latest reading of the Index of Consumer Sentiment shows a sharp drop in confidence…

Smart Spending Tips explores how credit scores and dementia may be connected. A new study suggests declining credit habits could be an early warning sign of cognitive decline. Discussion of credit scores often centers on young people starting to build credit or people trying to rebuild credit after financial trouble. However, a new study shows that credit scores can also be important as an indicator of mental health as people grow older. The study found that missed payments and declining credit scores can be early warning signs of Alzheimer’s disease and other forms of dementia. That means monitoring credit scores…

Smart Spending Tips explains why credit in 2025 matters more than ever, how emerging financial trends impact your score, and what you can do to stay ahead in a changing credit landscape. The evolving role of credit in 2025 Credit in 2025 is more than just a number—it’s an important factor in financial security, borrowing power, and even job opportunities. As lenders adopt AI-driven underwriting models and credit scoring methods evolve, understanding what impacts your credit score is more crucial than ever. Whether you’re managing debt, seeking new credit, or preparing for major financial decisions, keeping up with the latest…

Smart Spending Tips explains the new tax rules for 2024 and how they may impact your tax bill, deductions, and tax credits. Tax laws evolve every year, and 2024 is no exception. Understanding the latest updates can help you maximize your refund, reduce your tax bill, and plan smarter for the future. The 2024 tax year filing is due April 15, 2025, the IRS deadline for most taxpayers. Standard deduction increases The IRS has raised the standard deduction for the 2024 tax year to adjust for inflation. The new amounts are: Single filers: $13,850 (up from $13,850 in 2023) Married…

Smart Spending Tips examines the latest trends in rising consumer debt, from surging credit card balances to increasing delinquencies—and what it could mean for borrowers. Government reports on consumer borrowing are starting to feel like the boy who cried wolf. Every quarter brings another warning—household debt is rising, borrowing is surging—yet the economy keeps moving, and people keep spending. It’s easy to dismiss record-breaking debt as just business as usual. But in the fable, the boy was ignored one too many times … and in the end, the wolf was real. Another quarter, another new record for rising consumer debt…

Smart Spending Tips explores how financial milestones at 30 have evolved across generations, from income and homeownership to credit access and debt management. Turning 30 has long been seen as a significant life and financial milestone. For some, it marked homeownership, stable careers, and growing savings. For others, it meant struggling with debt, rising costs, and shifting economic realities. Each generation has faced unique financial conditions at 30, shaped by job markets, inflation, home prices, and access to credit. Boomers built wealth early, Gen X embraced credit, millennials faced financial setbacks, and Gen Z navigates a high-cost economy. Income at…

Smart Spending Tips examines how consumer spending habits are shifting dangerously, with more Americans relying on debt instead of financial stability. Rising incomes have outpaced inflation for more than two years, creating a prime opportunity for households to reduce debt and build savings. Yet, many consumers have chosen to increase their spending instead of taking advantage of this financial cushion. This growing reliance on borrowed money signals a troubling trend that could have serious financial consequences for consumers if it continues. Spending growth outpaced inflation and income growth in Q4 At the end of January 2025, the Bureau of Economic…

Smart Spending Tips shares 10 practical steps to help you get back on the credit wagon and work towards improving your credit score. Life can throw curveballs, and sometimes, your credit score may take a hit. Whether it is missed payments, high credit card balances, or unexpected financial stress, it is never too late to get back on the credit wagon. Rebuilding your credit takes time, but with patience and discipline, you can start making progress. It is never too soon or too late to get back on the credit wagon. 1. Review your credit report for mistakes Your credit…