America’s Unprecedented Credit Card Debt — Here’s Two Smart Ways To Slash Yours

$1.17T — that’s the unprecedented balance of Americans’ credit card debt. Rising inflation, depleted pandemic-era savings, and strong consumer spending all pushed this figure 8.1% higher than last year. Factor in 24%+ interest rates and average balances exceeding $6.2K; the average American can expect to pay ~$1.2K annually in credit card interest. If you’re looking for relief from this severe burden, we’ve curated the best strategies to reduce your credit card debt:

• Balance Transfer: For those who boast the credit score to score a balance transfer offer, this refinancing strategy might be your best bet for dodging high-interest debt — at least at first. Many cards have promotional 0% APR periods for 12-18 months, allowing more time to pay down your balance — just read the fine print, consider transfer fees, and pay off balances sooner, not later.
• Debt Consolidation: If a balance transfer isn’t in the cards, or if the interest rate you’re paying is downright unbelievable, consolidating your debt into a single monthly payment might be a better option. This simplification tactic uses a lower interest rate loan — like a HELOC or personal loan — to repay multiple credit card balances, saving you on interest and reducing payments to track.

Breaking from tradition: Instead of slowly chipping away at high-interest debts with traditional repayment methods like the snowball or avalanche approaches, explore balance transfers and debt consolidation options — they could save you thousands in interest costs. With potential Fed rate cuts on the horizon, the timing to consider these financial tools has rarely been better.