Author: Maurie Backman

Personal loans can be a tempting way to borrow money because the lenders typically charge lower interest rates than credit cards, but that doesn’t mean these loans can’t get you into trouble.

In 2024, American consumers owed a collective $555.2 billion in personal loans, according to Experian, with the average loan balance coming in at $19,014.

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Millions of Americans took on personal loan debt in 2024, and getting out of that financial hole isn’t always easy. Take Dylan, for example. The 40-year-old from Tulsa, Oklahoma recently called into The Ramsey Show for advice on how to deal with his personal loan debt, telling co-hosts Ken Coleman and George Kamel that he’s "fallen into the personal loan trap."

Now, Dylan needs a way out, but breaking the cycle of debt can sometimes go beyond paying down loan balances, as Coleman and Kamel explained.

How one man racked up $30,000 in debt

In 2023, the average yearly wage in Oklahoma was $53,450, per the Bureau of Labor Statistics. Dylan, meanwhile, earned $85,000 in 2024, which means he probably earns enough to afford a reasonably comfortable lifestyle.

The problem? Dylan has an issue with spending, as Coleman and Kamel were quick to point out, and someone in that boat risks landing in debt no matter how much money they make.

"It’s so easy, it seems like," Dylan said, describing the process of racking up debt. He’d borrowed $11,000 last year to fund a Fourth of July trip to Boston with his mom, as well as covering some other expenses.

When Coleman heard that, he was horrified. "You could’ve saved up for that," he told Dylan.

All told, Dylan owes about $30,000 in personal loans, as he doesn’t have any credit cards. When asked what his personal loan interest rates were, Dylan said "one was like 300%."

It’s safe to say Coleman was shocked by that number: "300%? I’m dizzy."

Coleman and Kamel then pointed out that a rate that high sounds more like a payday loan than a personal loan. But either way, Dylan has a debt problem that he needs to tackle, and that involves getting to the root of it.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Breaking the cycle of debt

Coleman and Kamel feel that Dylan can, over time, get rid of his debt. But as Coleman shrewdly observed, there’s a deeper issue at play.

"I think you’re profoundly sad about your life," Coleman told Dylan, which may explain why the latter spends so much money he doesn’t have. Coleman explained that he wasn’t saying that to shame Dylan, but rather, to get Dylan to recognize that he could have a problem that goes beyond poor money management.

"The temptation is going to present itself tomorrow or the next week," Coleman explained. The co-host then told Dylan his priority should be to get to the bottom of why he keeps spending to fill a void. To that end, Coleman suggested therapy as a starting point.

Kamel then chimed in with some actionable advice on tackling the debt at hand. First, he told Dylan he absolutely has to stop taking on new debt. "We can’t solve the current debt if we don’t stop going into debt," Kamel insisted.

Kamel then asked Dylan what his smallest individual loan balance looks like, and whether he has any savings. Not surprisingly, Dylan has basically no money in the bank, which Kamel called living "down to the bone."

Dylan’s smallest debt is worth $500, so Kamel said that’s the debt to work on first. He suggested that Dylan use a popular tactic called the snowball method to pay down his debt. This method involves tackling your debts in order from the smallest balance to the highest balance.

The upside of using this method is getting to enjoy small wins as you tackle a large amount of debt — this tends to keep people motivated. In Dylan’s case, Kamel suggested paying off the smallest $500 loan balance as soon as Dylan’s able to come up with the cash. After that, Dylan can start throwing money at his next largest debt, and so forth.

Of course, that money needs to come from somewhere. Kamel told Dylan he needs to cut expenses and should consider signing up for overtime at work, which Dylan did. Kamel also suggested that Dylan might want to look into taking on a side hustle for extra income.

PYMNTS reports that roughly 40% of Americans currently have a side hustle, and the nice thing about a secondary income is that it allows you to earn money in a fairly flexible manner.

Kamel also asked if Dylan has anything he can sell to drum up some cash, but Dylan said no — his only possession of value is a paid-off car. At this point, cutting spending and boosting his income is probably the best strategy for Dylan to tackle his debt.

Kamel is confident Dylan can shed his debt, but warned that it wouldn’t be easy. "It’s going to take a lot of sacrifices," said Kamel, cautioning that it might take Dylan a good 18 months of hard work and minimal spending to meet his goal.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

While homelessness in Los Angeles County declined 5% last year, it remains a huge problem affecting roughly 73,500 people.

The good news: Billions of dollars have been allocated to address the issue. The bad news: A large chunk of that money can’t be accounted for.

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Now, Bill Essayli — President Donald Trump’s newly appointed U.S. attorney for L.A. — has announced plans to investigate possible fraud and corruption.

"Taxpayers deserve answers for where and how their hard-earned money has been spent. If state and local officials cannot provide proper oversight and accountability, we will do it for them," Essayli said in a recent statement.

Where has the money gone?

Ciaran McEvoy, spokesperson for the U.S. attorney’s office, told CBS News that according to one audit, about $2 billion is unaccounted for.

When asked whether there’s actual evidence of fraud or corruption with regard to the homelessness funds, McEvoy responded, "All we can say is we’re going to go where the evidence takes us."

Recent audits specifically pointed to reckless spending and a lack of transparency at the LA Homeless Services Authority, or LAHSA, which provides shelter for homeless residents.

In early April, the Los Angeles County Board of Supervisors voted to pull roughly $300 million in funding from LAHSA and transfer that money to the county’s newly created homeless services department. That vote came on the day the countywide sales tax increased by a quarter-cent to provide additional funding for homelessness programs. LAHSA has responded with its own review and series of recommendations.

Los Angeles council member Monica Rodriguez supports an investigation into the potential misuse of homelessness funds. "I think there have been some very clear failures," she said.

As of now, the newly formed Homelessness Fraud and Corruption Task Force will not be targeting one agency specifically. But as the investigation takes shape, that could change.

LA County needs all the funding it can get to address the crisis. The problem is particularly noticeable in downtown LA, where hundreds of people live in makeshift shelters in the Skid Row neighborhood. Homeless encampments are also increasingly showing up in suburban areas under freeway overpasses.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

What the crackdown means for LA

Combating homelessness is a significant priority across California. The state accounts for nearly a quarter of the homeless population in the United States.

Earlier this year, Gov. Gavin Newsom announced plans to distribute $920 million in funding to address the state’s crisis. But he also called upon local governments to take action individually, and he threatened to pull funds earmarked for homelessness initiatives if cities didn’t start stepping up their game.

“We want to see results. We have to address unsheltered homelessness, encampments and tents,” Newsom said. As of 2024, more than 187,000 people in the state were homeless.

Los Angeles Mayor Karen Bass introduced a program called Inside Safe in late 2022, which provides motel rooms for homeless residents who leave encampments. However, the program is costly, and its future is unclear. Homeless individuals who are housed in motels live in limbo until permanent housing becomes available to them.

County officials will be tasked with developing more effective solutions, but the concern is that agencies may be stonewalled in light of the crackdown.

The United Way of Greater Los Angeles recommends expanding housing subsidy programs and vouchers and providing more financial support to homeless people who are transitioning into housing. The group also feels that job training programs and child care initiatives are crucial to preventing homelessness by making it easier for county residents to earn a living.

To be clear, much work has already been done to address LA County’s homelessness crisis. The Homeless Initiative of LA County says that since June of 2017, more than 125,000 homeless people have been placed in permanent housing, while almost 43,000 people were prevented from becoming homeless.

Because more work needs to be done, there’s no room for error — or fraud. Still, reactions to Essayli’s task force have been mixed.

Mayor Bass recently told reporters she does not want Essayli’s investigation to diminish the city’s efforts to combat homelessness.

"I’m not opposed to the task force, but I don’t want it to be a fishing expedition," Bass said. "I don’t want it to be a distraction that takes us away from what our primary mission is."

On the other hand, Los Angeles County Supervisor Kathryn Barger expressed support for the task force’s creation, saying it was "long overdue."

"I believe this task force will add a much-needed layer of oversight that will help restore public trust and ensure resources actually reach those in need," Barger said in a statement.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

If you haven’t started investing in the stock market, you’re not alone. Nearly half (48%) of American adults don’t have any investment assets, according to a 2024 report by asset management firm Janus Henderson. The reasons why included a preference for more accessible assets like cash, being in debt or not understanding how to invest.

Furthermore, while a poll by CNBC and Generation Lab in 2024 found 63% of Americans aged 18 to 34 believe the stock market offers great opportunities to build wealth, many are not participating, and 61% are not saving for retirement each month.

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If you’re 32 years old and haven’t begun investing yet, you may have spent the first decade of your career missing out on a great opportunity to generate wealth. But it’s not too late to get in on the action. Here’s why it matters if you start investing early, and how you can get started.

The importance of investing early

One reason many people end up with little savings by the time they retire is that they don’t start early enough. But at 32, you have one huge thing going for you — time. The sooner you start investing, the more time your wealth has to grow. So, it’s important to take advantage of your age.

Let’s imagine you start contributing $500 a month toward retirement at age 32, and you continue to do so until age 67. Let’s also assume that your portfolio generates a yearly 7% return, which is a bit below the stock market’s average performance.

After 35 years of compounded returns, you’d be looking at a nest egg worth about $830,000. That’s over four times the median retirement account balance among Americans of that age group, according to Federal Reserve data.

But if you had waited to start investing at age 42, for example, generating that same yearly 7% return, by age 67 you’d have about $380,000. Even though you contributed $60,000 less income over 10 years, that missing $450,000 is the cost of lost time compounding gains.

It’s also important to invest at a young age in order for your savings to outpace inflation. As the purchasing power of a currency erodes over time, it helps to earn more than any value lost.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Investing for the first time

Investing for the first time? You’ll want to find the right home for your investments, and your best bet is to first exhaust tax-advantaged accounts before moving on to taxable accounts.

If you have access to an employer-sponsored 401(k) retirement plan, at age 32, you can contribute up to $23,500 of your salary, pre-tax. Furthermore, if your employer offers a contribution match program you should take advantage of it as much as you can, as it’s essentially free money. These plans generally come with investment options so you can choose from a list of where to invest your savings.

You may also want to put any savings into an individual retirement account (IRA), which has a contribution limit of $7,000 if you’re 32 years old. Traditional and Roth IRAs have distinct tax advantages, but funds in either type can be invested in the market.

If you’re able to max out an IRA or 401(k) and have funds to invest beyond that point, you can turn to a taxable brokerage account. There are no annual contribution limits associated with taxable brokerage accounts, however, any contributions are made with after-tax funds.

From there, it’s a matter of figuring out your risk tolerance and where to put your money. But one thing even the experts agree on is the importance of maintaining a diverse mix of assets within your portfolio so you aren’t as vulnerable if any investments go south. You can achieve this by buying stocks across a range of industries, or even blending in non-stock options such as bonds.

One way to make things a little simpler is to invest in index-tracking exchange-traded funds (ETFs). These can give you access to a range of publicly traded companies. For example, an S&P 500 index fund can give you a piece of each of the top-performing companies on the U.S. market. Legendary stock-picker Warren Buffett himself recommends index funds for everyday investors.

Keep in mind, however, the stock market has both good years and bad years. Even though, historically, the S&P 500’s average annual return rate is above 10%, past returns don’t guarantee future gains. But the longer you’re invested in the market, the more time you have to realize gains and recover from losses, which is another reason youth works in your favor.

If you’re still unsure, it’s not a bad idea to talk to a financial advisor, especially if you don’t know much about investing and are worried about making poor choices. An advisor can help you make the most of your portfolio so it grows enough to allow you to meet your financial goals.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Fleeing New York for Florida is a long-standing tradition among snowbirds and retirees.

During the pandemic, many New Yorkers abandoned their cramped city apartments for the promise of sunshine and more space.

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Their destination? For the very wealthy, it was Palm Beach. And now, it’s become a major hotspot — for those who can afford it.

“It’s a wealth migration from New York City,” says Ana Bozovic, a Miami-based real estate agent and founder of Analytics Miami.

A popular destination for a reason

An analysis by Realtor.com found that in 2019, only 6.5% of listing views in Palm Beach County came from New York. By 2021, that share had increased to 8.1%. By 2023, it reached an all-time high of 19.6%.

When the pandemic hit, many New Yorkers left their tiny apartments. Some moved to nearby suburbs in New Jersey and Connecticut, while others went further south to take advantage of what Florida had to offer.

Aside from its warm climate, Florida offers one financial perk: no state income tax. New York, by contrast, has some of the highest state income taxes in the nation.

It’s also not shocking that New Yorkers, in particular, have been driving up Palm Beach real estate prices.

According to Zillow, the average home value in Palm Beach is $2,127,973, up 1.9% from a year ago. Realtor.com reports that Palm Beach home prices peaked at $4.15 million in April of 2022. Today, the median listing price is $2.9 million — equating to a whopping $1,600 per square foot.

New York City has long been a hotbed for six- and even seven-figure salaries, with high-paying industries in finance, law and medicine. So it stands to reason that buyers accustomed to New York’s high cost of living are among those purchasing expensive homes in Palm Beach.

An IRS study found that Manhattan residents who relocated to Palm Beach County on the heels of COVID-19 had an average annual income of $728,000.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

The affluent are taking over

Now that New Yorkers have gotten their hooks into Palm Beach, it’s becoming tougher for locals to afford a home there. In addition to driving prices up, New Yorkers have also much of the already limited housing inventory.

“Palm Beach saw a massive uptick in housing demand during the pandemic, which drove home prices higher and inventory levels lower,” says Hannah Jones, senior data analyst at Realtor.com.

But this trend extends beyond the island.

"In Palm Beach County in 2024, the median single-family home price was $665,000. In 2019, it was $370,000. That is an increase of 89%," Bozovic says.

Compounding the issue, high construction and land costs make building new homes nearly impossible.

When demand is high and inventory is limited, prices tend to soar — and stay high. That’s bad news for middle-class Floridians who want to stay in the area but don’t want to be stuck renting forever.

According to the U.S. Census, the median household income in Palm Beach County was $81,115 in 2023. While that may have been enough to afford homes at the $370,000 level, $665,000 is a different story.

That said, New Yorkers may not stay away from the Big Apple forever.

Many companies are pushing return-to-office mandates. In the coming years, we may see a reverse migration as New Yorkers return to the Empire State to keep their high-paying jobs. Resume Builder reports that by 2025, 87% of companies will have returned to in-office life.

But unless a major shift occurs, buying a home in Palm Beach may remain a privilege reserved for the wealthy.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Located roughly 36 miles away from San Francisco is the city of Benicia, California. With a population of about 26,400 people, it’s known for its small-town charm.

The city also relies heavily on one major business — San Antonio, Texas-based Valero has operated a 170,000-barrel-per-day refinery in Benicia for 25 years. The facility employs over 400 workers.

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But now, those jobs, and the city’s general economy, are threatened as Valero has decided to close that location next year because of high operating costs and the strict environmental regulations California is known for. It also raises concerns for the fuel supply in the state.

Mario Guiliani, city manager for the city of Benicia, called the news "surprising and distressing" and said the refinery generates millions of dollars in revenue for Benicia.

"It would be a major hit on the city," he told ABC7 News. "It is the newest refinery on the West Coast. It produces a significant amount of gasoline for the California market. I cannot foresee a possibility where that refinery just ceases operation altogether."

Last year, another energy company, Phillips 66, announced it will close its Los Angeles oil refinery in late 2025 due to questions about its long-term sustainability. As a result of refinery closures, there’s a supply crunch anticipated at the end of this summer in California, reported Argus Media.

Governor Gavin Newsom has asked the California Energy Commission to “redouble the state’s efforts to work closely with refiners” and by July 1 recommend changes to the state’s approach to ensure it has adequate fuel supply.

“I am directing you … to reinforce the State’s openness to a collaborative relationship and our firm belief that Californians can be protected from price spikes and refiners can profitably operate in California — a market where demand for gasoline will still exist for years to come,” wrote Newsom in a letter April 21.

Rich Walsh, executive vice president at Valero, said the company is having meetings with the CEC to “minimize the impacts that would result from the loss of the refinery.”

Why a major refinery seeks to close its doors

The decision for Valero to close its refinery did not come out of the blue. Rather, it "follows years of regulatory pressure, significant fines for air quality violations, and a recent lawsuit settlement related to environmental concerns," the company said in a statement quoted by ABC7.

And it’s not just the Benicia refinery that’s at risk. The company said it’s also reviewing its broader operations in California.

During Valero’s most recent earnings call, CEO Lane Riggs said, "California has been pursuing policies to move away from fossil fuels for really for the past 20 years. And the consequence of that is the regulatory and enforcement environment is the most stringent and difficult of anywhere else in North America."

Riggs also said, "Benicia operates in the more difficult part of California with respect to the regulatory and enforcement side of this. And then on top of that, Benicia costs considerably more to maintain."

In October, Valero was charged almost $82 million in fines for a history of toxic chemical releases and other violations at its Benicia refinery dating back to 2003, reported ABC7. That was the largest-ever penalty to be issued by the Bay Area Air District.

A 2019 inspection found that Valero did not properly report toxic emissions from the facility’s hydrogen system — emissions that have been linked to health effects.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

A potentially devastating economic blow

The closure of the Valero refinery could cost several hundred Benicia workers their jobs — but the ripple effect goes beyond that.

Benicia Mayor Steve Young told ABC7 that news of the Valero closure is "deeply impactful for our entire community."

Brittany Hodgkinson, the manager of Elviarita’s Cantina and Catering in downtown Benicia, told the news network that her business relies on Valero employees for sales.

But beyond that, the refinery plays a big role in the community by sponsoring youth sports and school events.

"Just hoping that someone comes in and buys the refinery and keeps us going … That’s just my biggest hope" she said.

Unfortunately, such are the consequences of having a small city or town rely on one major employer for revenue.

For instance, in 2019, the city of Luke, Maryland suffered a major blow when its 131-year-old paper mill shut down, taking 675 jobs away with it, per The Washington Post.

The closure was said to have an impact on 2,000 others employed by other nearby businesses. Taxes from the mill had funded the bulk of the town’s budget.

As of now, Valero intends to close its Benicia refinery by April of 2026. Walsh did acknowledge during the company’s last earnings call that "there’s a genuine interest in California to avoid the closure." But he also said it’s a complex issue.

"We are having discussions with the state, but our intent right now is to close the refinery," Walsh said.

Young, meanwhile, told KQED that he wished the company had provided more of a heads-up on its closure plans.

“We need to get moving on this quickly because 12 months is not a long time given the severity of the economic impact,” said Young, who noted that nearly 20% of Benicia’s $60 million budget comes from the refinery. “I think that’s part of my frustration, is how little time we have to try to plan for some kind of an alternative.”

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

It’s unfortunately not uncommon for criminals to prey on older adults.

The FBI reports that elder fraud complaints rose by 14% in 2023 and caused more than $3.4 billion in losses, with the average victim losing $33,915.

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But what happened to 82-year-old Mary Brown of Orange County, Florida goes beyond your average scam.

Brown was approached by two strangers outside a Home Depot claiming they saw somebody drop a cash-filled wallet. Before she knew it, the men wound up in her car with her. She revealed she ended up giving them $11,000 in cash and the rings off of her fingers.

"It was terrible," Brown told WFTV Action 9. "It bothers me to this day, and I can’t sleep sometimes at night.”

A scary and disturbing encounter

Brown was going about her business when two men approached her in a Home Depot parking lot with a wallet full of cash they claimed to have found nearby. She had just loaded her trunk with mulch.

Brown, along with the two men, took a look inside the wallet.

“He opened just a little bit. He said, ‘Oh my God, this is $62,000,’" Brown told Action 9.

She suggested they turn the wallet in at Home Depot, but the men convinced her they should “divvy up” the money instead, claiming that it would just go to the local sheriff’s office and get held for 90 days only to never be seen again.

"That’s when they got in my car," Brown said.

The three drove away from the Home Depot to get away from prying eyes. Then, the men convinced Brown they each needed to add money to the pot so they could split it evenly.

Brown’s bank was just up the road, and she wound up withdrawing $11,000 from Truist Bank in cash.

At the time, Brown didn’t feel scared. She had no problem handing over her newly withdrawn cash or the rings off her fingers. The men left and promised to be right back to split the money.

"I never seen them again," she said.

Brown believes she must have been drugged for all of these events to have taken place, describing it as an "out-of-body experience." She says there’s no other explanation as to why she would’ve let the strangers into her car and given them all of that cash and jewelry.

“I want everybody to know that these people are out there, and they’re taking advantage of it,” she told Action 9.

Brown immediately felt foolish in the aftermath of what had happened.

"When I came home, I didn’t want to tell my daughter," Brown told Action 9. "I felt so stupid."

Eventually, she did end up telling her daughter what had happened, and she opted to share her story publicly to prevent others from falling victim to similar crimes.

The Orange County Sheriff’s Office Economics Crime Unit is now investigating the case. They say it’s still early in the investigation but they will do everything they can to try to bring Brown justice.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How criminals exploit people

It’s unclear as to whether the scammers who took advantage of Brown actually did drug her, and if so, how. But one thing appears certain — they used tactics similar to that of “social engineering” to lure her in.

Social engineering is commonly associated with cyber scams, but similar strategies can take place in person, too. Some sort of hook is required to gain a person’s trust, and then that trust is used to steal sensitive information or, in Brown’s case, money.

In Brown’s situation, the scammers approached her on the basis of wanting to share a windfall due to her being in the right place at the right time.

Another form of social engineering might be for someone to approach a person like Brown inside a store, ask for advice on what to buy, whine about not having enough money and convince the victim to drive to the nearest ATM to withdraw cash for them.

The reason social engineering works so well is that humans have a tendency to be trusting and curious at the same time. That’s why someone who receives a phone call from an unknown number may be inclined to pick it up rather than ignore it. It also explains why people click on suspicious links all the time in texts and emails.

SecureFrame says that a typical social engineering attack has four phases. First, the criminal gathers information on a target. Next, they make contact and gain the victim’s trust. After that, they convince the victim to either share sensitive information or perform a specific action, like withdrawing money from a bank account.

Finally, they break contact without raising suspicions, at least not initially.

In Brown’s case, for example, the criminals promised to come right back with her share of the money. They never did.

Clearly, similar methods are often behind in-person scams as well.

Red flags to look out for

Since older Americans can be just as vulnerable to in-person scams as they are to online schemes, it’s important to know what red flags to look out for in both scenarios.

First, never respond to an unsolicited email, phone call or text message. And never reveal sensitive information such as your Social Security number, bank account details or passwords.

To avoid a situation like what happened to Brown, make a point of not engaging in conversations with strangers unless you’re in the middle of a crowded area, like a supermarket, where there are cameras and lots of people you can turn to for help.

Not every stranger who asks you a random question or shares an anecdote is a criminal. But if you’re approached by strangers in an isolated area or empty parking lot and feel uncomfortable, don’t engage.

If you’re approached by strangers, tell them to back away loudly and reach for your phone so they get the message (or actually call the police if you feel threatened).

Finally, if you have an older loved one you care about, warn them that both online and in-person scams are on the rise. Try to offer tips like the ones above on how to avoid becoming a victim.

The Federal Trade Commission (FTC) says that, in 2024, 18% of fraud reports were made by victims between the ages of 60 and 69 — the highest percentage of all age groups.

People in their 20s, by contrast, only made up 13% of fraud reports. So, it’s important to educate the older adults in your life on the dangers that lurk— and how to respond to urgent requests from strangers.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Janette Gantt Palmer was born at home in 1949, during segregation in Aiken County, South Carolina. Because of this, she was never issued a birth certificate.

Now, at 76 years old, Gantt Palmer is trying to renew her driver’s license, and she’s hitting a roadblock.

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The reason? To comply with the new Real ID program, which takes effect on May 7, she needs a birth certificate or a passport to prove her identity. But Gantt Palmer doesn’t have either document.

"After waiting two hours in the line, I said, ‘I’d like to renew my driver’s license.’ ‘Oh no, you need this and you need that,’" Gantt Palmer told CBS News Miami. "For what, what reason? I never had it before."

An ongoing issue

This isn’t the first time Gantt Palmer has tried to get a birth certificate. She told CBS she’s been trying to get her hands on one her entire life. Without a birth certificate, she can’t get a passport or a new license, meaning she doesn’t have the necessary documents for Real ID compliance.

"Back in those days, we were born at home," she said. "The lady came to your house and helped your mom have the baby."

Still, the absence of a birth certificate didn’t stop Gantt Palmer from building a career. She worked as a postal worker for 42 years and drove school buses. Her postal worker ID helped her obtain a driver’s license in the past.

She’s since returned to the DMV multiple times, bringing various documents to prove her identity, including her Social Security card. She also has a letter from the State of South Carolina confirming it found no record of her birth after searching decades of archives.

The Aiken County Office of Vital Statistics told CBS News Miami it can provide a delayed birth certificate, but it’s a lengthy process. Gantt Palmer would need to gather her school records from the 1950s. She also has the option to go to court and get a judge’s order.

Florida State Rep. Ashley Gantt — Gantt Palmer’s niece — has been trying to help. She secured a 90-day extension and plans to reach out to a colleague in the South Carolina legislature to see if the process can be expedited..

Gantt Palmer is also working with U.S. Congressman Mario Diaz-Balart’s office to try to obtain a passport. Regardless of the outcome, she needs to be able to drive.

For now, she remains hopeful.

"God’s gonna work it out though," Gantt Palmer told CBS News Miami. "I don’t know how, but I need my driver’s license, I know that much."

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How the Real ID program works

Beginning May 7, the REAL ID Act — passed by Congress in 2005 — will finally be enforced. Its goal is to establish minimum security standards for driver’s licenses and other forms of identification.

A big part is to improve national security and prevent acts of terrorism. But why the nearly 20-year delay? Several factors have contributed, including states arguing they lacked the funding to implement the changes. As a result, extensions were granted over the years.

In recent years, it seemed the enforcement of REAL ID was ready to move forward. However, in late 2022, the Department of Homeland Security postponed the deadline again, citing significant delays caused by state licensing agencies dealing with backlogs from the COVID-19 pandemic.

Starting May 7, Americans will need a REAL ID-compliant license to access certain federal facilities, board commercial airplanes and enter nuclear power plants. All states are now issuing REAL ID-compliant driver’s licenses.

To get one, visit your state’s licensing agency website to check if you need an appointment and what documents are required.

At a minimum, you’ll need:

• Proof of your full legal name and date
• Your Social Security number
• Two documents showing your current address
• Proof of lawful status (e.g. immigration documents if you were born outside the U.S.)

Some states may have additional requirements.

Without a REAL ID, you won’t be able to board a domestic flight unless you have a passport, passport card or another TSA-accepted form of identification. (This rule doesn’t apply to children under 18.)

A standard, non-REAL ID driver’s license won’t suffice. You may also be denied access to certain federal buildings or nuclear facilities.

The TSA said it will use a "phased enforcement" approach starting May 7, though what that looks like remains unclear. To avoid issues, it’s best to have a compliant ID before the deadline.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

When Dr. Elisabeth Potter posted a TikTok video describing an experience she had in the ER, she never expected it to go viral. But her message — about health insurance companies overstepping their bounds — resonated deeply with viewers.

The video started with Potter saying, "It’s 2025 and insurance just keeps getting worse." She then explained that during a surgical procedure, UnitedHealthcare called demanding information about a patient who was already under anesthesia. To comply, Potter had to scrub out mid-surgery and return the call.

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To make matters worse, the representative she spoke with didn’t even have the correct information — despite the procedure being pre-approved. "Insurance is out of control. I have no other words," she concluded. UnitedHealthcare got wind of the video, posted just weeks after CEO Brian Thompson was killed, and demanded that Potter remove it, claiming her story wasn’t true. The company also insisted that no one had expected her to return a call mid-surgery.

However, in an interview with CNN, Potter explained that she called the insurer back immediately to prevent the patient from being denied coverage and stuck with a financially devastating bill. "The environment I am practicing medicine in — when an insurance company says jump, I say ‘How high?’”

UnitedHealthcare claims that it had approved the procedure and overnight stay, but the hospital submitted a separate stay request that required review. The insurer called that request an error and confirmed that the patient ultimately received all necessary care.

But Potter insists that insurance companies are telling doctors what to do and, in some cases, interfering with patient care. "Insurance shouldn’t practice medicine,” she said. “But they are.”

Americans may not be getting the care they need

A recent Kaiser Family Foundation (KFF) report found that in 2023, 19% of in-network claims under Marketplace health insurance plans were denied. The rate was even higher — 37% — for out-of-network claims.

Making matters worse, fewer than 1% of consumers appeal denied claims. And even when they do, they often lose: 56% of appeals are upheld. Meanwhile, UnitedHealthcare says it approves and pays about 90% of the medical claims it receives, with about half of the unpaid claims attributed to administrative errors.

Yet frustration with the insurance industry runs deep. After Thompson’s accused killer, Luigi Mangione, was captured, many were quick to argue that Thompson had it coming — accusing him of prioritizing profit over patient care.

That 90% approval rate is also questionable. Miranda Yaver, an assistant professor of health policy and management at the University of Pittsburgh, said, "It can be difficult to estimate exactly how many claims are denied in a given year by health insurers because not all health insurers report this data."

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Medical debt is a huge problem

According to KFF, about 6% of U.S. adults owe more than $1,000 in medical debt, and roughly 1% — or 3 million people — owe over $10,000.

In total, Americans owe at least $220 billion in medical debt. Unsurprisingly, those most affected are people with disabilities, those in poor health, low-income individuals and the uninsured.

New rules prevent medical debt from appearing on credit reports, which helps protect consumers’ credit scores. However, that doesn’t erase the debt itself. Many people who can’t afford their medical bills negotiate lower costs down with providers, but others are forced to pay off their debt over time — often at the expense of other financial obligations and goals.

Change is sorely needed

Thompson’s killing was a wakeup call for the insurance industry. If the shooting is confirmed to be linked to insurance policies, it "could cause companies in the sector to make some changes," said Ron Culp, a public relations consultant at DePaul University, in an interview with Crain’s.

Meanwhile, concerns about health care access loom large. The Center on Budget and Policy Priorities cautioned last year that President Trump’s return to the White House could pose significant risks to health coverage, particularly in the areas of Medicaid and the insurance marketplaces. During his first term, Trump attempted to repeal the Affordable Care Act (ACA).

A recent KFF poll found bipartisan agreement on key health care reforms, such as increasing price transparency and tightening regulations on insurers’ approval and denial of prescription drugs. However, 40% of Republicans still believe repealing the ACA should be a top priority.

President Trump signed an executive order to make health care pricing more transparent. During his first term, he also signed the No Surprises Act to protect consumers from unexpected medical bills. Still, there’s more work to be done in the fight for insurance reform, and consumers can only hope that lawmakers will make it a priority.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

If you’re worried about a near-term recession, you’re certainly not alone. According to a survey conducted by business outlet Chief Executive, American CEOs revealed their take on the current economy, and it found that 62% now anticipate a slowdown or recession in the next six months — up from 48% in March.

Part of the reason for this concern stems from uncertainty around tariff policies. As it is, tariff announcements have managed to wreak havoc on the stock market. It’s not such a stretch to think that they might lead to a broad pullback in consumer spending, especially if they lead to higher costs.

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If you’re worried about a recession and recently came into, say, a $10,000 inheritance, you may be wondering whether you should use that money to pay off a $9,000 credit card balance or put the money into an emergency fund.

The truth is that paying off debt and boosting savings are both smart moves at a time like this. Let’s dig into the pros and cons of paying off debt versus increasing savings so you can decide what to do.

Paying off debt

The longer you carry debt, the more it can cost you. So, if you use your $10,000 inheritance to pay off your credit card balance, you’ll potentially save yourself a boatload of money on credit card interest.

Plus, if a recession hits, it could result in more widespread layoffs. And if you end up losing your job, not having credit card minimums to meet could make that situation a lot less stressful.

On the other hand, if you use your $10,000 inheritance to pay off $9,000 in credit card debt, you’ll only be leaving yourself with $1,000 for savings purposes.

The fact that you owe $9,000 on credit cards means you may not have much in the way of savings to begin with. But a mere $1,000 cushion isn’t likely to get you very far if you lose your job and are unemployed for months. So, while paying off your credit cards solves one problem, it could open the door to another.

Keeping the cash as an emergency fund

A $10,000 emergency fund could be extremely handy if you were to lose your job in a recession.

Generally speaking, it’s a good idea to have at least a three-month emergency fund to get through a layoff without having to resort to more debt. If you keep that $10,000 in your savings account, it could spare you from having to add to your credit card balances and rack up even more interest charges.

Also, it happens to be that savings accounts are paying generously right now because interest rates are up.

If your $9,000 credit card balance happens to be on a 0% interest credit card with a good number of months until that 0% rate goes away, you could keep the money in savings for a bit, earn some interest, and see how economic events shake out.

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Of course, the downside of this approach is that if you’re not looking at a 0% APR on your credit card debt, keeping the money in savings could mean racking up extra interest needlessly.

If your credit APR is 24% — which is roughly the average APR on new credit accounts these days — and it takes you three years to pay off your balance, it could cost you around $3,700 in interest alone.

Plus, the reality is that even if a recession hits, you’re not guaranteed to lose your job, so you may not need the extra emergency savings immediately. On the other hand, you know for a fact that your credit card balance is there, and that the longer it takes you to repay it, the more money you stand to lose to interest.

Taking a balanced approach

A $10,000 windfall gives you a lot of leeway to better your financial situation ahead of a recession. One thing you could do is split that money between your credit card debt and your emergency savings.

The upside of this approach is that you get more protection in case your job disappears, but you also whittle down your credit card balance to a point where your minimum payments should shrink and your interest charges should be reduced.

The downside, though, is that you may feel like you haven’t fully tackled the goal of paying down your debt completely or building your emergency fund completely.

Putting $5,000 toward your debt still leaves you with a $4,000 balance, which is not a small sum. And while $5,000 is a nice emergency fund, it’s probably not enough to float you for three months either.

Then again, 40% of Americans can’t cover a $1,000 emergency expense from savings, according to U.S. News & World Report. With $5,000 in savings, you’re in a much better place than people in that boat, even if you don’t have a “complete” emergency fund.

Ultimately, all of the choices above are financially responsible ones. You’ll need to think about how vulnerable your job and industry might be to layoffs in the event of a recession. You’ll also need to consider what your credit card debt is costing you before you can make a choice that’s right for you.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.