Credit Card Debt Relief

Multiple years of historically high inflation took their toll on the average American household. As savings dwindled and wages slipped behind, consumers increasingly turned to credit cards to make ends meet.

Now, many are looking for credit card debt relief.

Here’s why: Overall debt is at record highs, with credit card balances averaging more than $6,000. Add the uncertainty of modern life — the possibility of a job loss, unanticipated medical expenses, emergency home repairs, hardships, or mere overspending — and you could find yourself in a financial fix.

You don’t have to go it alone. With options ranging from simply getting yourself coached up on personal finance to having experts go to bat for you, help is a click or a phone call away. Let’s explore.

Credit Counseling

Certified credit counselors have broad, deep, and sharable expertise on the subject of personal finance. Counselors drill down into your income, expenses, and debt to identify what ails your finances and how they can be repaired. With a diagnosis and a plan, almost instantaneous stress relief is available.

You’ll receive patient guidance in financial management customized to your situation, including developing a budget, as well as lessons on how to stick to that budget. You might discover such counseling is just the credit card debt relief option you need.

Better still, most credit counseling agencies — and all nonprofit agencies — provide these services free and without obligation, helping you get a grip on your debt without adding another bill. Additionally, credit counseling is confidential and will not impact your credit score.

More About Credit Counseling

• What Happens During Credit Counseling?
• Why Choose InCharge for Credit Counseling?
• Why Work With Certified Credit Counselors?
• Military Debt Relief
• What is the Difference Between Secured and Unsecured Loans
• Financial Help for Single Moms and Dads

Debt Management

A debt management plan, or DMP, is among the tools your credit counselor might recommend. DMPs consolidate unsecured debt, such as credit cards and medical bills, into a single, budget-friendly monthly payment. Your DMP likely will reduce interest rates, lower the combination of minimum payments, and stop collections calls. Stick with it, and a debt management plan will eliminate your unsecured debt in 3-5 years.

Agreeing to a DMP is a big step. Increase your odds of success by doing your homework. Research credit counseling agencies online and consult more than one counselor. Evaluate the options presented and choose the solution that best addresses your needs.

More on Debt Management

• Learn About Debt Management
• Life On A DMP
• How Much Debt Do I Need for the DMP?
• Signs You Need a DMP
• Debt Snowball vs. Debt Wrecking Ball
• Unemployed and In Credit Card Debt

Debt Consolidation

Debt consolidation provides debt relief by consolidating your loans into one. A good debt consolidation loan will have a lower interest rate than the average of your credit card debts, saving you money so you can pay them down faster.

Play it smart by shopping around. Yes, even if you love your bank or credit union. Yes, even if your first application yields extremely attractive terms. Compare first; commit later.

Make certain the monthly payment is manageable for the duration of the loan, regardless of unforeseen circumstances. Build a buffer against upheavals by stashing the savings into an emergency fund.

More About Debt Consolidation

• How Nonprofit Debt Consolidation Works
• Online Debt Consolidation
• Debt Consolidation Through Home Equity
• Debt Consolidation with Bad Credit
• Credit Consolidation

Tips for Successfully Consolidating Credit Card Debt

In the brief video above, InCharge Debt Solutions credit counselor Billie Passmore discusses three keys to help get you out of credit card debt and manage your personal finances.

How to Get Out of Credit Card Debt

Relief options for card debt can confuse and befuddle, especially when you’re drowning in red ink … which millions of Americans are.

The third quarter of 2025 witnessed U.S. credit card debt reaching a record high of $1.233 trillion, up $24 billion from Quarter No. 2 ($1.209 trillion, also a record). Year over year, credit card debt grew by an eye-catching 5.7%.

The latest figures show average credit card debt per U.S. borrower reached $6,523, according to credit reporting giant TransUnion, up more than $1,000 since the same period in 2022.

Wait. There’s more. Nearly 175 million of us carry a balance from one month to the next, paying an average interest rate of — better sit down — 24.04%!

When those balances and punishing interest rates threaten to crush household finances, credit card consolidation companies offer ways to reduce and eventually eliminate that debt. Before choosing one, study up on your options.

The Four Best Solutions for Credit Card Debt

• Debt management programs
• Debt consolidation loans
• Debt settlement programs
• Bankruptcy, when things have spun out of control

Which cure is best? We’re getting to that.

Assorted treatments exist for getting your finances, including credit card debt, under control. Finding them takes a bit of research, but we have a hunch you’re in a hurry. Conveniently, we have bored in on your behalf.

While you sort which method suits you best, keep making payments. The last thing you want to do is to stop paying your credit card bills; the consequences can be severe.

Here are the major ways to pay off debt. We’ll proceed from the most straightforward to the most drastic.

Budgeting and Paying Debt on Your Own

Going it alone means you track your expenses, set financial goals and tailor your lifestyle to meet them. For some — you, perhaps — this means a complete break with your past. Use a credit card payoff calculator to figure out how quickly you can pay off your debt.

Pros:

• It’s free. You, not some hired expert, set up your budget, and negotiate with credit card companies for better terms.
• You are the master of your own financial destiny.

Cons:

• It can be time consuming.
• Failure to make steady, on-time payments opens the door for you to be sued by your credit card companies.
• Your creditors could garnish your wages.
• You might make budgeting mistakes or need the services of professional counselors and negotiators.

Time to repay: That’s up to you. Obviously, the sooner the better.

Balance Transfer

Using the balance transfer option, you move your debt to a new credit card offering a lower introductory interest rate, most times as low as 0% for up to a whopping 21 months.

Hopefully, you can pay off the debt during the 0% interest introductory period.

Pros:

• No interest means every punctual payment reduces the balance owed.
• You can consolidate all your credit cards into one payment.
• If you are aggressive with this option, you could eliminate credit card debt relatively quickly.

Cons:

• You need a good credit score – typically above 680 – to qualify.
• When the introductory period ends (read the fine print; it may be as few as six months), you will pay standard interest rates on the remaining balance, possibly higher interest rate than you had with the card you abandoned.

Time to repay: It depends on your terms. Suppose you have $5,000 of debt and make monthly payments of $400. With a 20% APR, the payoff would take 15 months, and you’d pay a total of $6,000. A 15% APR would take 14 months, and you’d pay a total of $5,600. A 0% interest deal means 13 months, or a month longer than many 0% balance transfer cards allow.

Credit Card Debt Consolidation Companies

Credit card debt consolidation companies assist by paying off all of your credit card debt, leaving you a single loan to pay off. The key is getting beneficial credit consolidation loan terms (i.e. low-interest rate) that save you money.

Pros:

• Instead of dealing with bills from each credit card, you have one monthly payment.
• Your financial burden is eased because of lower interest rates.
• Your monthly payment should be lower, giving you the chance to pay off the debt quicker.

Cons:

• If you use your house or other assets to secure the loan, you could lose them if you default on payments.
• If the interest rate isn’t low enough and/or the payoff time is excessive, you might end up with more debt than when you started.

Time to repay: It varies, but most debt-consolidation loans are for 36-60 months.

Home Equity Loan/Line of Credit

A home equity loan or home equity line of credit is the classic second mortgage. Meanwhile, your first mortgage remains in place, completely unaltered.

With a home equity loan, you use some portion of the equity in your house as collateral to secure a loan for a lump-sum amount. The loan is then repaid over a fixed term.

With a home equity line of credit (HELOC), a lender opens an account you can draw from as the needs arise.

Pros:

• Interest rates are generally far lower than those offered by credit cards.
• You can consolidate all your debts and have one monthly payment.
• A HELOC offers the flexibility of borrowing smaller amounts depending on your circumstances.

Cons:

• Because your house is used to secure the debt, you risk foreclosure if you fail to make payments.
• Closing costs, such as attorney fees, appraisal fees, title search, and points add to your debt total.
• If you opt for an adjustable interest rate and the market doesn’t cooperate, you could end up with a credit-card type interest rate.
• You’ll need a favorable debt-to-income ratio to qualify.

Time to repay: HELOC draw periods are usually 5-10 years and repayment periods are 10-20 years. Home equity loans can be taken out for up to 30 years.

Debt Management Program

In a debt management program, a nonprofit credit counseling agency works on your behalf to get better terms from credit card agencies. A certified credit counselor reviews your financial situation and helps you create an affordable monthly budget. You make one monthly payment to the company, which distributes those funds to the creditors.

Pros:

• Lower interest rates and simplified financial obligations.
• Programs are designed to eliminate credit card debt in 3-5 years.
• You get a clear picture of those obligations, and counseling typically includes a course on budgeting that could enlighten you.

Cons:

• If you miss a payment, the agency will lose concessions made on the interest rate and creditors could restore previous terms.
• You must agree to stop using credit cards until your balance is paid off.

Time to repay: Most DMPs are for 36-60 months.

Debt Settlement

You know those radio commercials that declare “you have a right to reduce your credit card debt by up to 50%”? Debt settlement is what they’re pitching. As financial remedies go, this is, in a word, radical. Also, risky.

Consider debt settlement only if your credit card headache is ultra-migraine caliber and all but incurable. Here’s why.

You stop paying your credit card bills while a company tries to negotiate a reduced settlement with creditors on your behalf. You pay the company the negotiated amount, either in a lump sum or monthly payments that build up to a lump-sum payment. It distributes that money to the creditors who have agreed to the terms.

Pros:

• Your debt can be drastically reduced, sometimes as much as 50%.
• You make one payment a month (into the debt settlement company’s escrow account) instead of many.

Cons:

• In the time it takes to get to “Yes,” debt settlement wrecks your credit score because you stopped paying your bills.
• Accounts usually need to be 3-4 months delinquent before creditors will negotiate a reduced payment.
• Late fees and credit score damage piles up while you build toward an acceptable lump-sum payment.
• Debt collectors will continue to contact you over your unpaid balances.
• Debt settlement stays on your credit score for seven years.
• There is no guarantee creditors will agree to a reduced payment. If they refuse, you will be in worse financial shape than you started.
• You must pay taxes on the amount of debt that is forgiven. The IRS and state tax collectors regard forgiven debt as income.
• The debt settlement industry has a shady reputation; companies make money via fees that take a hefty percentage of the debt that’s negotiated.
• Most people don’t understand that debt settlement will not help you pay off your debt faster. It’s a long, costly process.

Time to repay: Typically, 2-4 years.

Credit Counseling

Credit counseling frequently is the easiest and most effective treatment. A certified professional studies your financial situation and advises you how to escape credit card debt.

Pros:

• Counselors do the work for you.
• There usually is no fee to discuss your situation with a counselor.
• Counselors help you create an affordable budget that includes a line item dedicated to paying off debt.

Cons:

• None, as long as you use a reputable credit counseling agency. Visit the National Foundation for Credit Counseling for recommendations.

Time to repay: It depends on which program you choose, and what program the counselor advises, but 3-5 years is a safe bet.

Now, the stubborn fact: All these programs are just ways to deal with symptoms. In truth, the true cause of credit card headaches isn’t credit cards. It’s the person using them. In fact, average credit card debt varies by state, level of education and income, among other factors.

If you swallow one of the aspirins discussed above, your condition will return if you keep spending beyond your means. So, pick a treatment that best suits you.

Take it to heart: Only you can cure yourself from credit card pain. Heal yourself, and many of life’s other headaches could be a breeze.

Financial Help for Widows

If you recently lost a spouse and his income, you may need fast financial relief. Financial help for widows comes in assorted forms, including hardship programs potentially available from your creditors and mortgage company. Additionally, you can find out if you qualify for Social Security benefits from your deceased spouse. If you’re having trouble keeping up, check out our article on what to do when you can’t pay your bills.

Financial Help for Senior Citizens

It is difficult to pin down the exact number of America’s senior citizens who lack a suitably feathered retirement nest. What isn’t in dispute is that debt remains a significant issue for those who’ve passed their 65th birthday.

According to an AARP survey reported in March 2025, people ages 66-71 carry average non-housing debt of $11,349; seniors over 70 are the fastest-growing group of borrowers, with their debt growing 36.2% since 2020; and nearly half of seniors use credit cards to pay for basic living expenses, such as food and housing.

The good news is there are numerous resources offering financial help for seniors, especially related to credit card debt, finding employment, food assistance, legal and housing help. Learn more about financial help for senior citizens.

Get Food Budget Relief with SNAP (Food Stamps)

Depending on your income, assets, and other considerations, you may qualify for the federal Supplemental Nutrition Assistance Program — SNAP in shorthand, formerly known as food stamps. Reducing your monthly food expenditure will trim your overall budget and free up money for other necessities. Benefits amounts are based on income and household size. For the 48 contiguous states and the District of Columbia, the maximum monthly benefit in 2026 ranges from $298 for singles to $994 for households of four. Each additional qualifying member adds $218 monthly.

Find out more about SNAP eligibility requirements and benefits.

How Much Debt Does the Average Person Have?

Nobody wants to be known as below average, right? But in the case of debt, that would be just fine.

The average U.S. household carried nearly $105,000 in debt in the middle of 2025, according to Experian. That’s a hefty amount, but it’s roughly $800 less than Experian reported a year earlier.

The figure includes all forms of debt, including credit cards, mortgages, auto loans, student loans, and other forms of debt. Residents of the nation’s capital carry the most debt ($156,868 per household), closely followed by Colorado ($155,204) and California ($151,749). West Virginians owe the least ($63,441).

In 2024, that debt burden cost the average U.S. household more than $8,500 in interest (about 10% of the average income of $83,730).

Credit Cards

U.S. credit card debt totaled a record $1.233 trillion in the third quarter of 2025. That breaks down to an average of $9,326 owed by the average American household, according to numbers crunched by The Motley Fool.

TransUnion reports the average balance on credit cards in late 2025 was $6,523, with the average utilization rate (balance divided by credit limits) at 29% — one point below what the credit reporting agencies consider the upper limit of prudent.

Keeping utilization down may be the result of the average American carrying three or more credit cards, says the Federal Reserve Bank of Atlanta. The Fed also reports nearly 220 million U.S. adults (82%) carry at least one credit card.

Mortgages

Average mortgage balances hit $258,214 in June 2025, Experian reports, up nearly $8,000 from a year earlier. Total U.S. mortgage debt hit $13.07 trillion at the end of September, says the New York Federal Reserve Bank, with more than 86 million active mortgages.

On the good news front, delinquencies decreased slightly, to 3.93%, in the middle of 2025, according to the Mortgage Bankers Association. That’s well below the historic average of 5.21% dating back to 1979.

Auto Loans

Total U.S. auto loan debt hit a record $1.66 trillion in late summer 2025, says nonprofit watchdog Consumer Federation of America.

U.S. motorists borrow an average of $42,000 for new vehicles and $27,000 for used vehicles, says Experian, and are stretching out their payment plans: 68.9 months is the new normal for new autos and 67.2 months for used. Leased vehicles clock in at an average of 35.5 months.

How high can payments go? The average new car payment in 2025 was $749. One in five borrowers pays more than $1,000 per month. Small wonder delinquency rates (5% at the end of Quarter Two in 2025) and repossessions (projected to hit 3 million in 2025) are creeping up year over year.

Student Loans

The average federal student loan debt is $39,075 as of August 2025, according to the Education Data Initiative, totaling $1.78 trillion. Some 42.5 million borrowers have federal student loan debt. Add private loan debt, and EDI estimates the total of average student loan debt may exceed $42,600.

All Debt Combined

Average total U.S. debt, from all sources, reached a record $18.585 trillion at the end of the third quarter of 2025, putting the average household debt at a knee-wobbling $140,000, also an all-time high.

It’s OK to be sobered by all that debt. But don’t be frightened. After all, there’s good debt and bad debt.

Mortgage debt, for instance, is considered “good debt,’’ as long as it’s a reasonable amount, particularly when interest rates are low. Even now, after several years of Federal Reserve tightening, more than half of active mortgages boast interest rates below 4%, reports the Federal Housing Finance Administration. One in five home loans is below 3%.

Even at 6%, many people can earn more money by investing instead of paying off their home in cash. More good news: Mortgage debt is backed by an asset that typically gains value over time.

There’s also this: A mix of debts can help build your credit score. Ten percent of the FICO-scoring formula is based on your mix of credit accounts. If you are responsible with several kinds of credit accounts — not just one — that reflects well with lenders.

Credit card debt and other high interest debt is considered “bad debt” because the interest you’ll pay generally outweighs any benefits you receive, such as helping your credit score.

More Debt Relief Statistics

• Debt Relief in Alabama
• Debt Relief in Alaska
• Debt Relief in Arizona
• Debt Relief in Arkansas
• Debt Relief in California
• Debt Relief in Colorado
• Debt Relief in Connecticut
• Debt Relief in Delaware
• Debt Relief in Florida
• Debt Relief in Georgia
• Debt Relief in Hawaii
• Debt Relief in Idaho
• Debt Relief in Illinois
• Debt Relief in Indiana
• Debt Relief in Iowa
• Debt Relief in Kansas
• Debt Relief in Kentucky
• Debt Relief in Louisiana
• Debt Relief in Maine
• Debt Relief in Maryland
• Debt Relief in Massachusetts
• Debt Relief in Michigan
• Debt Relief in Minnesota
• Debt Relief in Mississippi
• Debt Relief in Missouri
• Debt Relief in Montana
• Debt Relief in Nebraska
• Debt Relief in Nevada
• Debt Relief in New Hampshire
• Debt Relief in New Mexico
• Debt Relief in New Jersey
• Debt Relief in New York
• Debt Relief in North Carolina
• Debt Relief in North Dakota
• Debt Relief in Ohio
• Debt Relief in Oklahoma
• Debt Relief in Oregon
• Debt Relief in Pennsylvania
• Debt Relief in Rhode Island
• Debt Relief in South Carolina
• Debt Relief in South Dakota
• Debt Relief in Tennessee
• Debt in Texas
• Debt Relief in Utah
• Debt Relief in Vermont
• Debt Relief in Virginia
• Debt Relief in Washington
• Debt Relief in West Virginia
• Debt Relief in Wisconsin
• Debt Relief in Wyoming

FAQs About Credit Card Debt Relief

Inquiring minds want answers. Here’s an attempt to anticipate your questions.

Is Credit Card Debt Relief Real?

Credit card debt relief is absolutely real and available to almost anyone who contacts the various above-board providers. (Below, we discuss how you can identify the bad actors.) You have options; the toughest decision you could have is deciding which choice works best for you.

How Does Credit Card Debt Relief Work?

No matter what option you choose, you can’t go wrong by first contacting credit counselors at InCharge or another nonprofit organization affiliated with the National Foundation for Credit Counseling or the Financial Counseling Association of America.

Nonprofit credit counselors dive into your financial dilemma and discuss how to create a workable budget. They also help you understand and evaluate your debt-relief options, then guide you to the best solution.

Does Debt Relief Close Credit Cards?

Not all debt relief solutions are created the same. Some, such as debt management programs, will make closing credit card accounts part of your agreement. (Canceling card accounts does not cancel your balances, of course.) Others, such as consolidation loans, leave what to do about credit card accounts up to you.

Are Credit Card Debt Relief Programs Legit?

You don’t have to be paranoid to doubt the wonders of credit card debt relief. Type “credit card debt relief scams” into your favorite search engine and your skepticism will be well-rewarded.

The United States Senate Federal Credit Union highlights the warning indicators: Upfront fees, no written agreement, sky-high guarantees, and unsolicited calls are all signs to back away. Do not allow fear and urgency to pressure you into hasty decisions you’ll regret long term.

How Do I Qualify for Credit Card Debt Relief?

You won’t have to leap through hoops to qualify for credit card debt relief. If you can click a link, or punch in a telephone number (800) 565-8953) you’ll be on your way to a rewarding counseling session with one of the experts at InCharge.