Category Credit & Debt

As of August 13, 2025, mortgage rates in the U.S. have dropped again, marking a shift in the housing market. This change reflects growing uncertainty about the economy, especially with inflation slowing down and concerns rising about a possible recession. Over the past year, mortgage rates had been high due to the Federal Reserve raising interest rates to fight inflation. Now, with inflation easing up and the Fed pausing further increases, financial markets are adjusting their outlook. This has created a chance for homebuyers to get better deals on mortgages and for current homeowners to refinance at lower rates, potentially saving money over time.

As interest rates and inflation stay high, a veteran investment adviser is sharing smart money tips to help Americans manage their finances better. He points out that many people are struggling with rising mortgage and credit card costs, which can quickly lead to debt. To stay financially healthy, he recommends focusing on three main strategies: saving for retirement through plans like a 401(k), staying away from or paying off high-interest debt, and not making emotional decisions when investing. With the stock market going up and down, it’s important to keep a steady, long-term plan instead of reacting out of fear. These tips can help people build stronger financial futures, even during tough economic times.

In today’s uncertain economy, with inflation staying high and wages not keeping up, many people are feeling the pressure when it comes to money. A recent article from *AOL Finance* explains that habits like emotional spending—or buying things just to feel better—are becoming more common. But these behaviors can be dangerous, especially when people rely on credit cards to fund their purchases. This can quickly lead to debt and even more stress. The article encourages people to break away from harmful habits such as overspending, living beyond their means, and chasing instant gratification. Instead, it suggests focusing on smarter money moves, like budgeting, saving, and being more thoughtful with spending—even during tough times.

A new survey from June 2025 shows that many Americans are feeling more stressed about their finances than earlier in the year. Out of 2,000 adults with consumer debt, 58% said they’re currently facing a financial “crisis.” Just six months ago, most people were hopeful that things would improve, but now fewer believe their situation will get better by 2026. Rising prices, slow wage growth, and an uncertain economy are making it harder for people to manage their money. As a result, many are cutting back on spending, saving less, and rethinking their financial priorities to cope with the ongoing challenges.

On August 1, 2025, interest officially restarted for millions of Americans with student loans under the Biden administration’s Saving on a Valuable Education (SAVE) repayment plan. This follows a pause in interest that began when courts temporarily blocked parts of the program last year. The SAVE plan, introduced in 2023, was designed to make monthly payments more affordable by tying them to a borrower’s income and family size. However, with legal challenges still unsettled and rising national debt concerns, the Department of Education has decided to resume interest. As a result, many borrowers could see their monthly payments jump by an average of $300, adding more pressure to already tight budgets.

Mortgage rates remain high in mid-2025, with the average 30-year fixed rate slightly down to 6.76%. This small drop doesn’t change much for homebuyers, as inflation stays high and the economy remains shaky due to global tensions and unpredictable government policies, like trade tariffs. The Federal Reserve, which helps guide interest rates, has chosen not to lower rates yet, waiting to see how the economy responds. At the same time, home prices, property taxes, and insurance costs have all gone up, making it harder, especially for first-time buyers, to afford a home.