If you’re carrying a credit card balance from month to month right now, which many cardholders are, you are well aware of how quickly card debt can spiral out of control. While rates on many other borrowing products have been dropping recently, credit card rates have remained high and are currently sitting at an average of 23%, the highest rate on record. Rates on retail credit cards are even higher than that, with the average store credit card rate currently surpassing 30%. 

Given how high rates are, you don’t need to have a huge balance for the interest charges to compound quickly. If that happens, it can leave you with that are difficult to budget for. And, if you’re only able to make the minimum payments each month, you won’t make much of a dent in the balance, meaning that it’s even easier for your debt burden to become overwhelming. 

So, it’s hardly a surprise that many cardholders are now looking for ways to make their credit card debt more affordable. Luckily, there are strategies to help reduce the cost of carrying credit card debt and knowing how to leverage them can provide much-needed relief this October.

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3 ways to make your credit card debt cheaper this October

These strategies could help make your credit card debt more affordable this month:

Take advantage of debt forgiveness 

Debt forgiveness programs, also known as debt settlement programs, offer a way for you to potentially pay off your credit card debt for less than the full amount owed. These types of programs are typically offered by debt relief companies and work by negotiating with creditors to accept a lump-sum payment that is less than the total amount of debt. Once an agreement is reached, the remaining balance is forgiven.

This option can reduce your debt by 30% to 50% (on average) and is particularly useful for those who are struggling to keep up with even their minimum payments. For example, let’s say you have $15,000 in credit card debt spread across several cards and your creditors agree on a settlement amount of $9,000. You would make a lump-sum payment of $9,000, and the remaining $6,000 would be forgiven, drastically reducing the amount of money you owe. 

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Consolidate your card debt with a lower-rate loan

Another effective way to reduce your credit card debt is through debt consolidation, which allows you to combine multiple credit card balances into one single loan, typically with a lower interest rate. By taking this route, you can streamline the repayment process and save a significant amount on interest charges, especially if your credit card rates are as high as (or higher than) the national average. 

You can use a wide variety of loans, including personal loans and home equity loans — both of which have lower average rates than credit cards. Another option is to enroll in a debt consolidation program, which works similarly to traditional debt consolidation but the loan is obtained through a partner lender of the debt relief company you work with. But no matter what route you take, the goal is to try and reduce your interest rate as much as possible to maximize the savings.

Let’s say you have $20,000 in credit card debt with an average interest rate of 23%. By consolidating that debt into a home equity loan with an 8% interest rate, which is about the average you’d get today on this type of loan, you could save thousands of dollars in interest payments over the life of the loan. This also allows you to pay off your debt faster, as more of your payments will go toward the principal rather than interest.

Transfer your balances to a card with 0% APR

If you’re not ready for debt settlement or a consolidation loan, another option to consider is transferring your credit card balances to a card that offers a 0% APR introductory period. Many credit card companies offer balance transfer promotions where you can transfer existing high-interest debt to a new card with no interest for a specified period, typically ranging from 12 to 21 months. This allows you to pay down the principal balance without accruing additional interest.

For example, let’s say you have $10,000 in credit card debt at a 23% interest rate. By transferring that balance to a card with a 0% APR for 15 months, you essentially wipe out the interest charges for over a year, meaning that every payment you make goes directly toward paying down the principal. That gives you a clear path to reduce your debt faster. However, it’s important to have a plan in place to pay off the balance before the 0% period ends, as interest rates will increase after the promotional period.

The bottom line

Reducing the cost of your credit card debt this October may be possible with the right strategy. Whether you opt for a debt forgiveness program, a debt consolidation loan or a balance transfer card with a 0% APR, each approach can help you save money and pay off your debt faster. Before making a decision, though, just be sure you take the time to evaluate your financial situation, research your options and choose the method that best fits your needs.