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Nearly half of all American credit card holders carry a balance on their credit cards at some point during the year. If you’re among their ranks, you know that the combination of high prices and high credit card interest rates can make it challenging to pay that debt off in full.
Many cardholders have seen their interest rates remain elevated in recent years following the Federal Reserve’s 2022-2023 rate hikes, with credit card annual percentage rates (APRs) staying around 21.00%-22.00% through 2024-2026. That means interest payments are gobbling up a bigger share of credit card balances. And those credit card balances remain substantial. This kind of debt reached about $1.28 trillion in Q4 2025, according to data from the Federal Reserve Bank of New York’s Household Debt and Credit Report.
But the situation isn’t hopeless, however. If you’re one of the cardholders who can’t pay credit card debt in full, here are five steps you can take to address it.
Key Points
• Nearly half of Americans carry a credit card balance, which hit a staggering $1.277 trillion in Q4 2025 amid high prices and rising interest rates.
• Credit card interest rates currently range between 21.00%-22.00%, which can make carrying a balance costly.
• Pay your statement balance in full to maintain your grace period and avoid interest charges on new purchases.
• Explore options such as a balance transfer credit card or a low-interest personal loan to refinance and pay off your debt sooner.
• Consider changing your payment due date to better align with your budget and use a budgeting tool to help cut back on spending.
Step 1: Check your Credit Card Interest Rate
If you haven’t carried a credit card balance before, you may not be aware of what interest rate your credit card is charging. But it’s important to know exactly how much you’re getting charged so that if you need to, you can budget for interest expense as well as your purchases.
Average credit card interest rates currently range from 21.00%-22.00%. Depending on what type of credit card you have, your credit score, and your credit history, you may have a higher or lower interest rate than the average.
With interest rates this high, it can be a real financial setback to carry a balance for an extended length of time, making only the minimum credit card payment. You may find that you are only paying interest and making little headway in paying off what you actually spent.
💡 Quick Tip: With credit card interest rates rising in recent years, calls for credit card interest caps have been in the spotlight. Those carrying high-interest credit card debt, however, may find debt relief by switching to a fixed, lower-interest personal loan. A SoFi personal loan for credit card debt may provide a cheaper, faster, and predictable way to pay down debt.
Step 2: Understand How Your Grace Period Works
If you pay your credit card statement balance in full by the due date, a credit card grace period will usually take effect for the next billing cycle. That means you won’t owe interest on new purchases until the due date for the next billing cycle. If you pay the statement balance in full by the next due date, the grace period will continue into the next cycle, and so on.
But if you make only the minimum payment or a partial payment on the full statement balance by the credit card due date, you’ll get charged interest on the remaining balance and lose your grace period for the next billing cycle. This means you’ll owe interest on any purchase immediately. Even if you go back to paying the full balance, your grace period may not renew for several more cycles, depending on the specific terms of your credit card.
If you’re in a position where you can’t pay credit card bills and must move to partial payments, make sure you’re aware of the additional interest expense you’ll incur on the remaining credit card balance. Try to stop making new purchases with that card since interest will be charged on those purchases immediately.
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Step 3: Look at Changing Your Due Date
If you’re feeling overwhelmed because many of your bills are due at the same time, talk to your credit card company about changing your due date. You might be able to move your credit card due date to a day of the month that works better for your budget so your payments are a bit more staggered.
While this switch might not help immediately to pay down credit card debt, it could offer some relief in the long run.
Recommended: How to Avoid Interest on a Credit Card
Step 4: Explore Ways to Pay Off Your Balance Faster
You may find that with higher interest rates and inflationary spending, you need a more efficient way to pay off your credit card debt, such as by refinancing credit card debt. Luckily, there are some options for how to pay off credit card debt, though keep in mind the ideal way to pay off credit card debt will depend on your financial situation.
Balance transfer credit cards that offer a limited time low or sometimes even 0% interest rate can help — especially if you think you can pay the balance in full during the promotional low-rate period.
Another option you might consider is applying for a low-interest personal loan to pay off credit card debt in full. This could help you secure a lower interest rate, and by consolidating your credit card debt, you’d have fewer due dates to keep track of. Keep in mind, however, that there are pros and cons of personal loans to pay off credit card debt.
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Step 5: Consider Using a Budgeting Tool
If you’re finding it hard to make your credit card payments, that can be a signal it’s time to take a close look at your spending, perhaps with the help of one of the many online budgeting tools available.
Personal finance tools can help you understand just how much your cost of living has risen in recent months and make it easier to flag places you can cut back. Some can help to pinpoint fees you may be paying unwittingly or the automatic payments you’re making on your credit card that could get trimmed. Cutting these costs can then make it easier to pay off credit card debt.
The Takeaway
If you’re struggling with a credit card balance you can’t pay off, taking steps to pay off credit card debt faster and budget smarter can help. These can involve understanding your rate, changing your payment due date, and other moves.
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FAQ
What is a fast way to pay off credit card debt?
You might be able to use a balance-transfer credit card and pay down your debt during the 0% annual percentage rate (APR) promotional period. Or you might consider securing a personal loan to pay off the debt. You would then pay off the personal loan, which could have a lower interest rate.
Can you change your credit card payment due date?
You may be able to change your payment due date. See if your card’s website or app allows this kind of shift or contact customer service.
Do most Americans carry credit card debt?
According to recent data, approximately 45% of American credit card holders carry a balance at some point during the year. This means nearly half of cardholders have revolving credit card debt at least once annually.
Photo credit: iStock/Sneksy
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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