--- title: 5 Popular Strategies People Are Using to Escape Credit Card Debt description: Americans are taking on more credit card debt because of inflation. Luckily, there are many options to pay down your credit card balance. authors: - name: Brenden Rearick role: Reporter url: https://money.com/author/brenden-rearick/ bio: Brenden Rearick is a former reporter at Money who specialized in covering breaking news and enterprise stories about credit cards, real estate, investing, and personal finance trends. education: University of Pittsburgh, BA at_money_since: 2023 articles: 133 covers: - Personal Finance - Banking - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Housing - Insurance - Investing - Lifestyle - Loans - Mortgages - Professional Services - Retirement - Shopping - Taxes - Technology former_staff: true editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2024-03-26T15:24:43.000Z' modified: '2025-12-10T18:35:40.000Z' section: Personal Finance tags: - News word_count: 787 canonical: https://money.com/strategies-to-escape-credit-card-debt/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo collage depicting credit card debt](https://img.money.com/2023/06/News-top-5-solutions-get-out-of-credit-card-debt.jpg?crop=0px%2C191px%2C2880px%2C1620px&quality=85) As inflation spiked in recent years, almost half of Americans have taken to relying more on [credit cards](https://money.com/best-credit-cards/) to make ends meet. And although inflation levels are retreating, households are still relying on these lines of credit. A [survey](https://www.debt.com/research/credit-card-survey/) of 1,000 U.S. adults conducted by consumer website Debt.com finds that 45% of Americans have been pushed by [inflation](https://money.com/retirement-confidence-plunging-inflation/) to use their credit cards far more frequently. Inflation has taken a toll on consumers, reaching a peak of over 9% in June 2022. Fortunately, the Federal Reserve’s interest rate hikes have (so far) proven effective at getting this rate back down. But while the Fed has pressed the pause button on its inflation-combatting interest rate hikes and plans to reverse them at some point in 2024, the effects of high prices still loom large on personal finances. According to the survey, half of Americans are carrying a higher credit card balance due to inflation, with 1 in 5 Americans owing between $10,000 and $20,000 on credit cards alone. More than one-third (35%) say they’ve maxed out their credit cards sometime in the last several years. And over 35% of respondents report having an average credit card [annual percentage rate (APR)](https://money.com/what-is-apr/) of 20% or greater. ## Regain financial stability with the help of Freedom Debt Relief ### Freedom can start you on the path to resolve your debt, especially if you owe over $20,000. Why wait? Select your state to get started today! [Get Started](https://money.com/pr/l67257dab4e3?ap_referrer=%2Fstrategies-to-escape-credit-card-debt%2F) ## Getting out of credit card debt Debt.com's survey found that 58% of Americans have never tried the possible solutions highlighted below for getting out of their debt. Bear in mind, though, that the survey didn't necessarily focus just on people struggling with debt. It included all Americans — and many of them don't have any debt to pay off. Of those who have explored different strategies for helping to pay off credit card debt, here are five of the most popular options: ### Debt settlement Debt settlement, a strategy considered by 1 in 10 respondents, is the process of [negotiating your credit card debt](https://money.com/how-to-negotiate-credit-card-debt/) with your creditor. This can be a negotiation that you handle on your own, but there are plenty of third-party [debt settlement companies](https://money.com/best-debt-relief-companies/) as well. Debt settlement isn't a guaranteed thing, though; your lender doesn't necessarily have to agree to settle and accept a lower amount than what you owe. It's not the fastest method out there, and it can lower your [credit score](https://money.com/what-is-a-credit-score/), making it a riskier route. You'll also need to pay the settlement company; fees tend to average between 15% and 25%, paid when the settlement is reached. ### Credit counseling Sometimes, all you need is a little know-how. [Credit counseling](https://money.com/free-financial-counseling-list/), considered by 13% of survey respondents, is a good path for those who think they can manage their debt as-is but need guidance. Credit counselors provide their clients with the education aspect of debt management, and they can help pinpoint the personal goals to managing your own unique case of debt. Oftentimes, though, credit counseling comes at a price. While many services offer free first sessions, companies can charge up to the federally-capped $79 in Debt Management Plan (DMP) fees and an additional fee which averages at about $40. ### DIY plan One of the most inexpensive methods for managing your debt is DIY planning. Most credit counselors charge rates to help you come up with your debt management plan, unless you use a non-profit or other method of free assistance. An alternative is planning ways to [get out of debt](https://money.com/how-to-get-out-of-debt/) on your own. The options range from creating a budget and reducing expenses to evaluating your own credit report for errors. About 11% of respondents have looked into trying DIY methods for getting out of credit card debt. ### Debt consolidation loan [Debt consolidation](https://money.com/best-debt-consolidation-loans/) is the practice of transferring multiple debts into a single loan, so that you don't need to worry about paying multiple bills each month. One of the more popular debt management methods, 14% of Americans have considered giving it a try. For some people, this could make the debt load more manageable, and it can sometimes even lead to a lower overall interest rate. Drawbacks to this method of management include origination fees to creditors and longer repayment periods. ### Credit card balance transfer A popular type of debt consolidation is that of the credit card balance transfer. These credit cards allow you to [consolidate your credit card balances](https://money.com/how-to-consolidate-credit-card-debt/) and outstanding loans into a single new credit card. The [best balance transfer credit cards](https://money.com/best-balance-transfer-credit-cards/) often come with lower interest rates and friendly introductory periods; many offer 0% APRs for the first 12 to 21 months. Balance transfer credit cards are the most popular option for Americans in the survey, with 19% considering them as a way to manage their debts. ## Transform your financial future today! ### Owe over $20,000? Get tailored Debt Relief services from Freedom Debt Relief. Click below to get started. [Visit Site](https://money.com/pr/v5ba59aed2dc?ap_referrer=%2Fstrategies-to-escape-credit-card-debt%2F) ![](https://s3.consumersadvocate.org/prd/image/image/25289/medium_2e7b27ce-b30d-40a3-beef-0139ecba6b47.png) If you owe over $20,000 or more, Freedom Debt Relief can help you get back on your feet! 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