Struggling with credit card debt? Here are options you may not know exist.
Many Americans are struggling with credit card debt and high interest rates are making it worse.
About half of all Americans with a credit card say they can't afford to pay it off in full each month, according to a new survey from The Century Foundation, a progressive think tank. Researchers say rising rates are pushing balances higher and costing consumers more over time.
But consumer experts say some solutions are simpler and more accessible than people may realize.
You may be able to lower your interest rate
Thomas Nitzsche with the credit counseling nonprofit Money Management International says one often-overlooked step is calling a credit card company directly.
About three-quarters of people who ask for a lower interest rate get one, according to Lending Tree. Even a few percentage points can save thousands of dollars over time.
Free help is also available, at least initially, through nonprofit credit counseling agencies like Money Management International.
"Snowball" vs. "avalanche" to tackle debt
For people who feel they can manage credit card debt on their own, Nitzsche said there are two common do‑it‑yourself approaches: the snowball and the avalanche.
The snowball method focuses on balance size rather than interest rate. Consumers list their debts from smallest to largest, put as much money as possible toward the smallest balance and make minimum payments on the rest. Once the smallest debt is paid off, that payment rolls into the next one, Nitzsche explained during a recent appearance on the In Your Corner podcast episode.
"The reason people like this approach is that it gives some emotional satisfaction quickly," he said.
The avalanche method, on the other hand, prioritizes interest rates. Debts are listed from highest rate to lowest, with extra payments going toward the highest‑interest balance first. That approach generally saves more money over time.
"That way you're attacking the debt with the highest interest rate, paying it off the quickest, saving the most in interest long term," Nitzsche said.
Before starting either strategy, he recommends contacting creditors to ask for lower interest rates, which is a step that can accelerate progress no matter which method someone chooses.
More resources available
Debt is a focus this month on the In Your Corner podcast, covering common mistakes, practical payoff strategies and guidance on when to seek help. You can listen to the full discussion on the latest episode here.
You can also get free, confidential advice on May 21, when certified credit counselors will be available throughout the day here to answer your questions. CBS News Philadelphia is teaming up with Money Management International (MMI) so you can chat with a trained financial counselor about your debt situation and how to get it under control.
Looking for help with a consumer issue? Click here to submit your complaint to In Your Corner.
