As the new year approaches, financial counselors say millions of Americans struggling with credit card debt still have options to regain control.
Roughly half of U.S. households carry some level of credit card debt, and rising interest rates have made balances harder to manage. Experts recommend starting by calling your credit card issuer to request a lower interest rate, particularly if your credit history is strong.
Another option is transferring balances to a zero-percent introductory card or using a lower-interest personal loan to reduce monthly interest costs. Some consumers may benefit from consolidating balances onto the card with the lowest rate.
Financial coaches also recommend the “avalanche method,” which focuses on paying off the card with the highest interest rate first while continuing to make more than the minimum payment on other balances. Free online tools, such as PowerPay, can help borrowers visualize payoff timelines.
Counselors stress that the most important step is seeking help early. Nonprofit credit counseling agencies can sometimes negotiate lower interest rates and help build a realistic repayment plan before balances spiral out of control.