While credit cards can be useful, the balance can creep up faster than you realize. That’s why trying to pay your balance down each month is important. But when you’re juggling multiple payments or trying to chip away at a high-interest balance, that can be easier said than done.
If you’re overwhelmed by your credit card debt, here are three things to consider:
1. Know Your Total Debt
Managing your debt efficiently can be difficult if you don’t know how many credit cards you have or your total debt. Review all your accounts to get a handle on how much debt you have.
2. Interest Rates Continue to Be High
Although credit card interest rates have fallen slightly since the historic highs of 2024, they haven’t fallen much. That means they’re still high — at 20.15% as of June 25, according to Bankrate. This is especially problematic for credit card users who are accumulating interest daily and watching their balances grow. So far, the small declines in the average interest rate haven’t been enough to make a significant difference in affordability or ease of repayment.
3. Your Debt Is Growing
Paying more than the minimum is helpful when you’re trying to pay back debt. But if your debt is getting higher and you’re only able to make minimum payments, it might be time to seek the help of a professional.
Try Our Free Virtual Counselor
MyVirtual Counselor is an interactive tool that can tell you how much money you can save by enrolling in a debt management plan (DMP). A DMP program is offered by certified credit counseling agencies and is designed to help you pay down your debt in three to five years. A counselor will work with your creditors to consolidate your credit cards into one affordable monthly payment while reducing your interest rate significantly. Our new virtual counselor feature allows you to privately explore savings before talking to a real counselor. Before you get started, you’ll want to make sure you know all your debt, assets, and income.
Bottom Line
While no time is a good time to be in debt, high prices and interest rates make paying down credit card debt especially challenging. But by using the available tools and making a plan, you can pay back your debt quickly and efficiently.