NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
Jan 13, 2025
Explore money management strategies for travelers and expats, tackling the intricacies of credit card debt and international banking. Learn effective repayment tactics while navigating rising debt trends. Discover essential tips for managing finances abroad, including avoiding high fees and selecting the right credit cards. The conversation also dives into the emotional impacts of debt, focusing on proactive repayment and prioritizing financial goals. Finally, gain insights into navigating taxes and the benefits of professional assistance for expatriates.
27:09
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Quick takeaways
- Understanding credit card debt trends is crucial, as rising essential costs contribute significantly to financial struggles for many Americans.
- When living abroad, selecting the right financial institutions and using multi-currency tools like Wise is essential for managing expenses effectively.
Deep dives
Current State of U.S. Household Debt
Household debt in the U.S. has increased slightly, with overall debt up by just under 4%, while credit card debt specifically rose by 1.5%. A significant factor driving this trend is the rising costs of essential expenses, such as food and utilities, which have outpaced income growth over the past five years. Nearly half of Americans with revolving credit card debt cite these necessary expenses as contributors to their financial struggles. The average credit card interest rate currently sits at over 23%, leading individuals with an average debt of about $10,500 to face total repayment costs nearing $29,000 if they only make minimum payments.
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