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Credit lock vs. credit freeze (5 20 25)

Credit lock vs. credit freeze (5 20 25)

Anthony Hazzard
May 20, 2025

Student Loans: A potential crisis is brewing that impacts millions of borrowers. Are you one of them? Find out more later in this email.

💵 Today’s Top Stories

Credit Lock vs. Credit Freeze: What’s the Difference?

A credit lock and a credit freeze may sound the same. But don’t be fooled. Only one really protects you. Read more to understand what to do. Read more.

Secret Way To Earn Even More Cash Back with Amazon’s Prime Visa

Got a Prime Visa credit card in your wallet? You can earn up to 6% cash back on purchases with this delivery option on eligible items. Read more.

Google TV Touts 800 Free Live TV Channels. What Does That Mean?

Google TV advertises that it offers a whopping 800 free channels. Here are some of the channels that are and aren’t included, as well as how Google serves as a free content aggregator. Read more.

10 Most Popular Freelance Jobs and Where To Find Them

Travel and hospitality, project management and communications are among the 10 most popular freelance jobs right now, according to FlexJobs. What’s the most coveted freelance role in America? Read more.

💻️ Tech Tip From Kim Komando

Not today, Amazon: Your Echo will hold onto your voice recordings for analysis unless you tell it not to. In your Alexa app, choose More > Settings > Alexa Privacy > Review Voice History. Here, you can delete recordings to your heart’s content.

For a limited time, Kim Komando is offering a giveaway for a chance to win $500 for you and $500 to gift to someone you choose (a friend, family member, local hero, or stranger in need). To enter, sign up for Kim’s free newsletters that have a 4.9/5 rating.

🏫 Potential Student Loan Crisis Brewing

The government paused collection on most federal student loans in March 2020 at the beginning of the COVID-19 pandemic in the United States.

Required payments resumed in October 2023 with borrowers given a one-year grace period. Delinquencies began appearing on credit reports this year.

This month, the U.S. Department of Education began collecting on defaulted loans for the first time in five years and two months.

From 2013 to 2020, the share of student loans at least 90 days delinquent hovered in the double figures (10%+) – more than credit cards, auto loans and mortgages. That number nosedived to just 0.5% of student loans thanks to the forgiveness.

But according to the Department of Education, 42.7 million borrowers owe a combined $1.6 trillion (Americans owe “just” $1.2 trillion to credit card companies).

More than 5 million borrowers haven’t paid in more than 360 days (“many for more than seven years”). Another 4 million are in “late-stage delinquency (91-180 days).”

Said the department: “There could be almost 10 million borrowers in default in a few months. When this happens, almost 25 percent of the federal student loan portfolio will be in default.”

TransUnion reported 20.5% of student loan borrows as seriously delinquent 90+ days) in February, the highest number ever.

Millions of Americans are in danger of wrecking their credit scores if they don’t take care of their student loan debts immediately.

📊 Stat of the Day

🚚 $800,000: The amount in dimes that a tractor-trailer was hauling on U.S. 287 in Texas when it got into an accident and spilled the coins. “A portion of … U.S. 287 [closed] for about half a day as workers got on their hands and knees to pick up the coins in addition to using brooms and shovels and large industrial vacuums.”

💰️ Deal Alert: Today’s Top Deals

🎙️ Podcast

It can be tempting to take money out of your 401(k). After all, you pay yourself back, right? Not the case! Clark explains why it’s a slippery slope to pull money out of retirement savings – and what you should absolutely never take money out to buy. Also, lost checked bags has been a big problem over the last several years. But airlines are finally implementing solutions to prevent it from happening.

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

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