Have $10,000 or more in credit card debt? Experts say to make these 4 moves now

Despite near record-high average interest rates—21.91%, according to Federal Reserve data—credit card debt remains an issue. The average credit card debt is around $8,000 now. This number is understandable given the current economic environment, and many cardholders are carrying balances over $10,000.

These statistics illustrate a concerning picture: Inflation and consumer prices are not coming down fast enough for Americans struggling to make ends meet.

If you've got $10,000 or more in credit card debt, paying down your balance would certainly give your budget a boost. But how do those with large credit card balances expect to do that while carrying a balance month to month and incurring interest charges, sometimes as high as 30% on some credit cards?

We asked credit experts about the best moves to make if you've got $10,000 or more in credit card debt. Below, we'll detail four steps they recommend taking now.

Start by exploring your debt relief options here.

What to do if you have $10,000 or more in credit card debt now

Here are four moves the experts we spoke to suggest borrowers with $10,000 or more in credit card debt make right now:

Follow a budget

What's the best way to reduce a $10,000 credit card balance? "Create a budget and switch to a debit card," says Jarrod Sandra, owner and CFP at Chisholm Wealth Management.

Start by listing all your regular expenses, plus occasional ones like your car registration and annual insurance premiums, so you can free up extra money to pay down your debt. Also, add up all of your income and schedule auto-payments to pay your bills and credit cards before the money gets spent elsewhere.

"Paired with the budget is to switch your spending to a debit card until the credit card debt is taken care of—or permanently if you're worried about it being a problem again," adds Sandra. "You'll choose harder decisions when you know you only have so much in your debit card account and you're watching the balance go down throughout the month versus a credit card that has a high limit and you can add up the expense and delay paying."

Work toward reducing your credit card debt here now.

Negotiate with your creditors

Perhaps the most straightforward move you can make to pay down a large credit card balance is to simply contact your credit card company and ask for a lower rate. Sure, they can say no, but many card issuers will consider it, especially if you've always made on-time payments and you maintain good credit.

"Simply call up and ask for a reduction," says Leslie Tayne, a financial attorney and author of "Life and Debt." Tayne notes that credit card companies know your unsecured debt isn't as high of a priority as making payments on something like your mortgage, especially if you've missed payments or fallen behind. She also points out, "Credit companies want to keep their customers, so once you're behind, negotiating with you is often in their best interest, especially regarding the total amount of debt."

Choose a proven repayment strategy

Daniel Milks, a certified financial planner and founder of Fiduciary Organization & Woodmark Advisors, says the best move for most people is to cut discretionary spending immediately and redirect all excess cash toward debt. "I usually recommend starting with the avalanche method to save the most on interest—unless motivation is the bigger hurdle, in which case the snowball method can be more sustainable."

The debt avalanche method prioritizes paying off your debts with the highest interest rates. Its biggest advantage is that you'll save the most money on interest over time. However, you might prefer using the debt snowball method, which focuses on paying off your smallest balances first, as the quick wins build momentum, which might motivate you to stay on track.

Debt consolidation or introductory 0% APR balance transfer credit cards

You may qualify for a debt consolidation loan to combine your high-interest credit card accounts into a single, fixed-rate installment loan, ideally with a lower interest rate. Loan terms range from one to seven years, giving you an end date to wipe out your balance, rather than making payments seemingly for years on end.

You'll likely need a credit score of at least 670 to qualify for a balance transfer credit card with a 0% introductory period for up to 21 months. That may give you enough time to pay off your balance interest-free, or at least put a dent in it. Before proceeding, however, be aware of the risks. "I encourage people to go for the 0% transfer only when they can pay it off during the intro period," says Sandra. "Otherwise, you get back charged the interest and you're no better off than before."

Explore your debt consolidation loan options now.

The bottom line

A little planning, followed by some simple actions, could help you significantly pay down—or even completely wipe out—a substantial credit card balance. Following a budget and a repayment strategy can help you create some breathing room in your budget. And lower interest rates could be a phone call away if you're able to successfully negotiate with your card issuers.

If you're struggling to keep up with your payments and you're concerned about serious consequences such as bankruptcy, you might explore working with a debt relief service. "A debt relief attorney specializing in consumer-based debt solutions could help you with this and inform you of your rights if you are being contacted or harassed by creditors," says Tayne. 

Another option is to work with a nonprofit credit counseling agency. They may help you create a budget or, in more serious cases, put you on a debt management plan. Many services include a no-cost initial consultation.