Credit card debt, interest rates and what borrowers should do right now
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Paying off your high-rate credit card debt should remain a priority, even in today's unique economic atmosphere.
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The news released this May that credit card debt balances were declining appeared to be positive on the surface. Certainly, a decline in what borrowers owe is preferable to a spike. But upon closer examination, this seemingly good news wasn't exactly what it appeared to be. For starters, credit card balances in the United States in the first quarter of 2025 remained very high, at a total of $1.18 trillion. While that was down $29 billion from the previous quarter, it still represented a 6% rise from the same period in 2024. And with the average credit card debt hovering close to $8,000 currently, there's likely a lot of work left for borrowers to complete to regain their financial freedom.
And that work shouldn't be put off any further, particularly in today's unique economic atmosphere. Fortunately, there are multiple debt relief options available that are worth exploring, some of which borrowers may want to get started with as soon as this June. Below, we'll detail why they should act quickly – and how they may want to do so.
Start by checking your credit card debt relief eligibility requirements here.
Credit card debt, interest rates and what borrowers should do right now
Not sure if it's worth taking aggressive action to reduce your credit card debt? Here are three items to consider to help you determine your next steps:
Your current credit card debt amount
Sure, you may owe less than that $8,000 average amount … or you may owe more. Either way, if you can't pay off what you owe in its entirety, then it may make sense to pursue some form of debt relief. And that doesn't have to mean utilizing the services of a debt relief provider, as options like balance transfer credit cards and debt consolidation loans may be able to be secured on your own, and dramatically reduce your interest rates in the interim, providing a clearer path toward total debt payoff.
Just don't sit idle, no matter which option you prefer, as credit card interest compounds daily, turning even a manageable debt load prohibitive.
Explore your alternative debt relief solutions online now.
The broader interest rate climate
If your plan is to wait for the broader interest rate climate to cool and, for that cooling to significantly reduce your currently high credit card interest rates, then you may be waiting for a very long time. Right now, there's almost no chance of a fed rate cut for when the central bank meets again in June (the CME Group's FedWatch tool has a rate pause there listed at nearly a 100% certainty).
Rate cuts could become more realistic in July, but even then, by just 25 basis points, which will have little to no impact on your credit card rates (which are influenced by multiple factors besides just the Fed). Being realistic about this interest rate climate, then, and its likelihood to change in a helpful way soon, can better help you move to the next step this June: finding the right debt relief option for your particular situation.
Your debt relief alternatives
Did you know that you could qualify to have 30% to 50% of your credit card debt forgiven? If you meet certain qualifications, this is certainly possible. But it's not the only way to get rid of your credit card debt with aforementioned items like balance transfer credit cards, debt consolidation loans possible too, along with credit counseling, debt management programs and more all playing critical roles for borrowers in need of a debt solution now.
You won't know which is applicable to your unique situation, however, until you've taken the time to explore and research all of them. Consider doing so now, then, and make this June the first stop on your journey toward full financial freedom.
The bottom line
The economic climate credit card users find themselves in this June isn't exactly a favorable one. With credit card balances high, interest rates elevated and the prospect of relief for either dim, it makes sense to be proactive with an appropriate debt relief approach. By understanding the dynamics of today's economy and being realistic about these developments, borrowers can feel more comfortable exploring their debt relief options and, from there, choosing one (or multiple) that can help them reduce what they owe once and for all.
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