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Credit card debt is continuing to climb, and it's not just inching upward, either. Americans added $27 billion to their credit card balances in the second quarter of 2025, pushing the total credit card debt tally to a staggering record-high $1.21 trillion nationwide, according to from the Federal Reserve Bank of New York. That represents a 2.3% increase from the previous quarter and an uptick of nearly 6% compared to this time last year.

And it's not just the that are cause for concern. According to the report, nearly 7% of credit card balances have also transitioned into delinquency over the last year. That's a signal that more borrowers are struggling to keep up with their credit card payments as at nearly 22% on average. Rates that high can cause card balances to balloon quickly, especially as the accrue. 

With balances at near-record highs and delinquencies on the rise, and with economic uncertainty continuing to loom, now is the time to take action. Luckily, there are several strategies you can use to and start to regain control of your finances.

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If you want to lower your credit card debt, the following strategies could help you do that:

If you have multiple credit card balances and decent credit, might be a good way to simplify your payments and potentially . With this method, you take out a personal or debt consolidation loan and use the proceeds to pay off your credit card balances. You're then left with just one fixed monthly payment to manage.

The key to lowering your debt here, though, is securing a lower interest rate than what you're currently paying. Lowering your rate by even a few percentage points can save you hundreds or even thousands of dollars in interest charges over time, especially if you're .

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Another option for reducing interest is  for an introductory period, typically between 12 and 21 months. This wipes out the interest charges for the full introductory period, which can be a smart strategy if you're confident you can pay off most or all of your balance before the promotional period ends.

Just keep in mind that most balance transfer cards charge , which is typically 3% to 5% of the transferred amount, so you'll want to do the math to ensure that the savings are worth the extra costs. You should also understand that if you don't pay off the balance in time, you'll be subject to interest charges at the card's regular rate. For disciplined borrowers, though, this can be a highly effective short-term solution.

If you're already struggling to keep up with your credit card payments or your , debt settlement, also referred to as , might offer a way out. With this approach, you or a professional debt settlement company acting on your behalf to offer a lower lump-sum settlement in return for the remainder of your balance being forgiven. 

While this strategy results in on average, it's not without its drawbacks. Debt settlement can in the short term, for example, and not all creditors are willing to settle, either. But if you're overwhelmed by unmanageable balances and delinquent accounts, it could be a lifeline worth exploring.

If you're not sure which direction to take, can help review your financial situation and walk you through your options. These agencies offer free or low-cost consultations and may recommend if you qualify.

A debt management plan consolidates your debts into a single monthly payment, and the credit counselor will work to try and and have fees waived. While you won't be settling the debt for less than you owe, this route may make your payments more manageable, reduce your interest charges and help you avoid falling further behind.

Don't underestimate the power of making a simple phone call, either. Most credit card companies would rather work with you on a solution than get nothing if you , so they're often willing to negotiate payment plans, reduce interest rates or put a temporary pause on your payment obligations . So, call your issuer and explain your situation honestly to see if they can provide some breathing room while you get your finances back on track.

Credit card debt is hitting new highs, and delinquencies are rising alongside it, but you don't have to stay stuck in a cycle of minimum payments and mounting interest. Whether you're behind on payments or just feeling the pinch of high rates, there are real, actionable ways to reduce what you owe. So, compare your options and to start digging out of debt and take control of your financial future.