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I’ve never paid credit card interest. Not because I’m smarter than anyone, but because I grew up overly scared of debt and my Mum would kill me if I dared buy something I couldn’t pay off in full.
Most people aren’t so lucky. As of Q1 2026, about 63% of cardholders don’t pay their balance in full each month, according to the Federal Reserve Bank of Philadelphia. With the average card rate on general-purpose cards currently around 24%, that gap gets expensive fast.
If you’re behind on credit card payments, here are a couple moves that can help.
Why carrying a balance costs so much right now
At 24% APR, a $6,000 balance costs roughly $1,440 per year in interest. And with the Fed raising rates, I’ve got a feeling APRs will continue to rise and it’ll cost even more.
The higher the interest rate, the harder it is to tackle a balance — especially if you’re making only minimum payments.
Minimum payments (e.g. paying just interest + 1% of the balance each month) means the majority of each payment is going to interest, so the balance barely moves. That same $6,000 at 24% APR would take over 25 years to pay off with only minimum payments. It’s a trap, and it’s built that way on purpose.
The fastest fix if you can still qualify: a balance transfer
A balance transfer card moves your existing debt onto a new card with a 0% intro APR for a set stretch of months.
During that promo window, no interest is charged, so every dollar you pay gets applied straight to the balance. It does come with a balance transfer fee, but it’s usually small compared to the interest you avoid.
Here’s the math. If you move $6,000 to a card with 21 months of 0% intro APR, and make monthly payments of $300 per month, you’d avoid $1,738 in interest charges.
Even with a transfer fee of 3% ($180 in this case) you come out way ahead.
I’ve helped countless families cut their debt this way. But it starts with qualifying for a new card, with a good credit score — usually a score around 670 or higher.
One encouraging sign: banks have been loosening card approvals lately, per the Federal Reserve Bank of Philadelphia. That means qualifying may be more doable than it was a year ago.
What to do if you can’t qualify: free credit counseling
If your credit score is too low for a 0% intro APR card, a nonprofit credit counseling agency is where I’d recommend you start.
“Nonprofit” is an important term here. The last thing you want when you’re in debt is to pay unnecessary fees for services you can get free or cheap elsewhere.
Certified counselors help review your debt situation, create budgets, and walk through your realistic options. They also can negotiate lower rates with your card issuers, or set you up with a debt management plan.
A few years back, I called Money Management International to understand exactly how they help people build a plan. It’s a nonprofit I trust, and the first counseling session is usually free so there’s really no harm in exploring.
A debt consolidation loan is another option worth a look, since it rolls your balances into one fixed payment. You can start with the best personal loans to see if the rate beats your cards.
Build a payoff plan you’ll actually stick to
The tools matter less than the habits behind them.
Whatever path you pick, try automating your plan so it becomes a natural part of your finances.
Falling behind doesn’t mean you’re forever doomed. It just makes you one of the millions dealing with some of the highest card rates on record.
I got lucky with how I grew up, and now my whole job is helping people better their finances. The difference between staying stuck and getting free usually comes down to taking action.
First, check whether you qualify for a top balance transfer card. If you don’t, call a nonprofit counselor. Either way, you’ll go to bed tonight with a plan, and that’s how this turns around.
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