It can be tempting (and easy) this time of year to simply swipe your credit card without a second thought. With holiday spending expected to rise this year, many Americans are planning on spending thousands of dollars in the final weeks of 2024. And many already have. 

But a delay in dealing with credit card debt is always a mistake, especially in today’s unpredictable economic climate. If you’re one of the average credit card users already in thousands of dollars worth of debt, it could prove costly to wait until 2025 to deal with this expanding issue. Below, we’ll break down three big reasons why waiting until the new year to tackle your existing credit card debt would be a mistake.

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Why you shouldn’t wait for 2025 to tackle your credit card debt

While January doesn’t feel that far off, waiting just a few months to work through your credit card debt could be a mistake. Here’s why:

Credit card interest rates may continue to rise

Average credit card interest rates have surged recently, hitting a new record high of 23.37% in October. And that’s after inflation dropped for most of 2024 and after the Federal Reserve issued a larger-than-anticipated 50 basis point cut to the federal funds rate in September. So it’s possible, if not likely, that interest rates on credit cards will continue to rise as they’re influenced by a complex web of factors, with the Fed’s actions just one component. And remember that the 23.37% rate is an average, so many users may be paying even more. If you’re one of them, don’t delay action any further.

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Your debt will compound in the interim

Find a credit card debt calculator online and plug in your outstanding debt and your existing rate. Then extend it over a few months to determine how much it will compound by delaying action. That extra money will be paid to the lender with no material benefit to you, the user. And that calculation will be completed on the assumption that you don’t add to your debt with gift-giving, food shopping and more during this holiday season. If you add that to the equation, the resulting balance could quickly become prohibitive, so do everything you can to avoid letting your debt compound further.

It takes time for relief programs to work

Debt relief takes time to make a dent in your balance. It won’t be an overnight fix or even something that makes a huge difference in just a few months. Credit card debt forgiveness, for example, can take years to reduce your balance and, even then, only usually by 30% to 50%. Delaying this approach until January or later, then, would only make your financial situation worse. Instead, it’s worth shopping around for debt relief companies and exploring your options now so that you can start the process immediately.

Explore your debt relief options here to learn more.

The bottom line

If you’re one of the many Americans stuck with high-interest credit card debt, it makes sense to fight through the temptation to delay it past the holidays and instead work toward ways to reduce what you owe now. With credit card interest rates elevated, the risk of compounding debt and the knowledge that most debt relief options take an extended period to improve your situation, it behooves credit card users to act promptly. By being proactive users can work toward regaining their financial independence both now and in 2025.