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business Friday 1 april 2022
In Your Debt: Forget the Fed, pay off your credit card debt

By SARA RATHNER of Nerd- lent for those with lower
Wallet credit scores. (FICO scores
The cost of everything of 690 or higher are consid-
keeps creeping up. And if ered good credit.) "It may
you happen to have credit happen that when you ap-
card debt, that's about to plied for the account that
get a bit more expensive you have, your credit score
too, thanks to a series of in- was lower," says Bruce Mc-
terest rate increases begin- Clary, senior vice president
ning this month. of communications at the
With inflation at its highest National Foundation for
rate since the early 1980s Credit Counseling. He rec-
, the Federal Reserve is ommends checking your
adjusting interest rates to credit report and score to
hopefully restabilize the U.S. see whether you've moved
economy. In short, the Fed into a higher score range. If
changes the federal funds that's the case, you may be
rate, which alters the prime able to negotiate a better
rate — that's the rate banks interest rate on your credit
charge customers with card.
high credit ratings. Credit — CONSOLIDATE YOUR
card issuers add onto the DEBTS: That higher credit
prime rate to set their inter- score might also make you
est rates, so when the prime Credit cards as seen Thursday, July 1, 2021, in Orlando, Fla. eligible for a balance trans-
rate goes up, so does what Associated Press fer credit card with a no-in-
you'll pay when you're in terest promotional period,
debt. to month, and your inter- pay back. The bills don't young adults. "But if you're or a lower-interest personal
Got all that? Great. Now est rate is 16%, you'll spend stop just because you're in able to make it to that loan. These can both give
forget what you just read $800 in interest over the debt. point, it's really all about you a reprieve from high
and pay attention to this course of a year. If your This is why squeezing a making a plan. Don't let interest, but note that it
part: If you have significant interest rate increases to stress ball while watching your debt overwhelm you. depends on the terms you
credit card debt, it doesn't 16.25%, that translates to the news isn't helpful in this The sooner you can face can qualify for. And in the
really matter what the Fed only an extra $13 in interest case. What is helpful is fac- the numbers and devise case of balance transfer
is doing. Your credit card over a year. Technically, ing money issues head-on. a plan to pay it down, the cards, the interest rate will
debt has always been, and that means it's not so much "The hardest part is ripping easier you'll breathe." go right back up once the
will continue to be, expen- a rate hike as it is a gentle off the Band-Aid and really HOW YOU CAN PAY LESS 0% period ends.
sive. uphill slope. But $800 was just adding up the numbers INTEREST — REVISIT YOUR BUDGET:
THE TRUE COST OF CREDIT already a lot, and that's to see how much you owe," — SHOP AROUND FOR BET- The more money you can
CARD DEBT OVER TIME without accounting for the says Akeiva Ellis, a certi- TER DEALS: The average U.S. apply toward your monthly
If you have a $5,000 bal- fact that you'll still need to fied financial planner and FICO score increased to 716 credit card payment, the
ance remaining on your spend additional money founder of The Bemused, a by August 2021, and that sooner you can get out of
credit card from month you might not be able to financial literacy brand for increase was more preva- debt. q

Facebook resorts to old smear tactics against TikTok

By The Associated Press tactics to go after another Targeted Victory, said the
WASHINGTON rival TikTok. Meta, the Post company "manages bipar-
Eleven years ago, Face- reported, hired a Republi- tisan teams on behalf of
book was caught red- can consulting firm called our clients."
handed after it hired a Targeted Victory to "or- "It is public knowledge we
prominent public relations chestrate a nationwide have worked with Meta for
firm to try to plant stories campaign" against TikTok. several years and we are
harshly criticizing Google's Targeted Victory, accord- proud of the work we have
privacy practices in lead- ing to the Post, contracted done," he said in a state-
ing news outlets. with dozens of public rela- ment. The Post obtained
In 2018, it hired the PR firm tions firms across the U.S. to internal emails from Tar-
Definers to do opposition help "sway public opinion geted Victory that outlined
research on the company's against TikTok" by planting a campaign to undermine
critics, including billionaire local news stories and help- TikTok, which is owned by
philanthropist George So- ing place op-eds targeting the Chinese company
ros. The company's long- TikTok around the country, ByteDance. The firm used Facebook's Meta logo sign is seen at the company headquar-
time head of communica- the story says. a mix of "genuine concerns ters in Menlo Park, Calif., on, Oct. 28, 2021.
tions, Elliot Schrage, took Meta confirmed that it has and unfounded anxieties" Associated Press
the blame for approving hired Targeted Victory. about TikTok in order to try
the hiring of Definers and "We believe all platforms, to turn public and political cluding "submitting letters that the stoking of local
similar firms and left Face- including TikTok, should sentiment against it. and opinion pieces speak- media reports on alleged
book. face a level of scrutiny con- According to the report, ing glowingly of Face- trends that have not been
On Wednesday, The Wash- sistent with their growing Targeted Victory was also book's role in, for instance, found on the platform
ington Post reported that success," spokesman Andy working to get "proactive supporting Black-owned could cause real world
Meta, Facebook's parent Stone said in a statement. coverage" about Face- businesses." harm," TikTok said in an
company, is using similar Zac Moffatt, the CEO of book into local media, in- "We are deeply concerned emailed statement.q