New data reveals that a record 10.75% of Americans are now making only the minimum payments on their credit cards, marking a 12-year high. Additionally, past-due balances have surged by 10% at the end of 2024 compared to the previous year. This trend poses significant risks to consumers' credit scores, which can lead to higher costs and hinder savings opportunities. Alicia Seitz from Premier Members Credit Union emphasizes the importance of regularly checking credit reports for errors, which can range from simple misspellings to incorrect balances. Addressing these errors promptly is crucial, as credit bureaus have 30 days to resolve disputes. Contrary to common belief, freezing one's credit does not negatively impact the score and can actually provide protection against identity theft. Furthermore, a new law set to take effect in March will remove medical debt from credit reports, potentially boosting scores for up to 15 million people.
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