As Americans grapple with unprecedented credit card debt levels heading into 2025, finding effective relief strategies has become more crucial than ever. Recent Federal Reserve data shows credit card balances surpassed $1.17 trillion in the third quarter of 2024, up from $1.14 trillion the prior quarter, with the average household now carrying nearly $8,000 in credit card debt. This financial burden has been exacerbated by card interest rates climbing to historic highs, with the average credit card APR now exceeding 23%.

Part of the issue is that the lingering high prices due to years of inflation have stretched many household budgets thin and created a perfect storm for credit card debt accumulation. Many households have had to rely on credit cards to weather these financial challenges, but are now trapped in a cycle of minimum payments and mounting interest charges. As a result, traditional debt management approaches, like paying off your balance monthly or using the debt snowball or avalanche methods, may no longer be sufficient.

Luckily, those aren’t the only approaches that those seeking to break free from credit card debt in 2025 can take. There are a few other options that deserve consideration, and if you’re dealing with this type of issue, understanding these alternatives can help you make informed decisions about your financial future. 

Compare the debt relief options available to you here.

3 credit card debt relief strategies to consider for 2025

The debt relief approaches outlined below could come in handy as you prepare for the challenging economic landscape ahead.

Streamlining multiple debts with debt consolidation

Debt consolidation is one of the most straightforward approaches to managing high-rate credit card debt, and this type of debt relief is generally available in two primary forms: traditional debt consolidation through banks, credit unions and other lenders and debt consolidation programs offered through debt relief companies. 

With traditional debt consolidation, the goal is to take out a new loan through a traditional lender, typically with a lower interest rate, to pay off multiple credit card balances. This strategy allows you to roll multiple credit card balances into one loan, streamlining and lowering your payments, and it can be particularly effective for borrowers with good credit scores who qualify for loans with rates significantly below their current credit card rates.

Debt consolidation programs, on the other hand, provide a structured approach to debt consolidation. These programs function similarly to traditional debt consolidation, but the main difference is that you’re borrowing money via a debt consolidation loan through the debt relief company’s third-party partner lenders. These lenders tend to be more experienced in working with borrowers who have a few blemishes on their credit, so they may be more flexible in terms of borrowing requirements. 

Find out how the right debt relief strategy could benefit you now.

Getting professional guidance and structure with debt management

Debt management programs, which are offered through credit counseling agencies, are a comprehensive solution for those struggling with credit card debt. These programs provide professional financial guidance to you while working directly with your creditors to reduce interest rates and establish manageable repayment terms. When you enroll in this program, you’re typically required to close your credit card accounts and make a single monthly payment to the counseling agency, which then distributes the funds to your creditors.

The structured nature of this type of program helps ensure consistent progress toward debt elimination while providing valuable financial education and budgeting support. Most plans also aim to eliminate debt within three to four years, making them an attractive option for those committed to long-term financial recovery. So if you start this process early in 2025 and stick with it, you’ll be on your way to becoming debt-free in just a couple of years.

Settle your debts for less than you owe with debt forgiveness

Credit card rates have steadily climbed over the last decade, and it’s likely they’ll remain high throughout 2025 — no matter what happens with the overall rate environment. As a result, credit card debt forgiveness, also known as debt settlement, could be the best route to take next year for severely overwhelmed borrowers. This approach involves negotiating with creditors to accept less than the full balance and typically results in 30% to 50% of the original debt being forgiven. 

You can pursue debt forgiveness on your own, but many people opt to work with debt relief companies instead, as the experience they offer comes in handy during negotiations. Note, though, that this strategy does have some downsides, like credit damage and tax repercussions. There’s also no guarantee that you can settle your card debt for less than what you owe, as card issuers aren’t required to negotiate. But if successful, it can offer serious relief from credit card debt.

The bottom line

As credit card rates continue climbing, many borrowers may need to consider more aggressive approaches to their card debt. Debt consolidation, debt management and debt forgiveness can all be worth considering, but the choice between these strategies often depends on factors such as total debt load, income stability, credit score and long-term financial goals. Whatever strategy you choose, though, addressing your credit card debt proactively is typically the key to long-term financial health.

Washington — Sen. Mitt Romney, a Utah Republican who is nearing the end of his Senate term, warned in his farewell address on Wednesday of those who “tear at our unity,” urging America to uphold the nation’s values as he capped more than two decades in public service. 

“I have learned that politics alone cannot measure up to the challenges we face,” Romney said. “A country’s character is a reflection not just of its elected officials, but also of its people. I leave Washington to return to be one among them.”

Romney announced in September 2023 that he would not seek reelection after his first term in the upper chamber, noting at the time that “it’s time for a new generation of leaders.” The 77-year-old Utah Republican was the GOP nominee for president in 2012 and also served as the governor of Massachusetts from 2003 to 2007. 

In his farewell speech Wednesday, Romney said that “Americans have always been fundamentally good.” He argued that while there have been mistakes, “some grievous,” the nation has from its earliest days rushed to help neighbors in need, welcomed the poor and the huddled masses and respected different faiths.

Romney said as his time in office comes to an end, he hopes to be “a voice of unity and virtue,” saying that “it is only if the American people merit his benevolence, that God will continue to bless America.”

The Utah Republican, known as a moderate in the upper chamber who has been openly critical of President-elect Donald Trump, became the first senator in U.S. history to vote to convict a member of his own party in 2020 during Trump’s first impeachment trial. And he also voted to convict Trump of inciting an insurrection at the U.S. Capitol on Jan. 6, 2021. At the time he announced his retirement, Romney told reporters that the possibility of Trump returning to the White House did not weigh into his decision. 

Senate Minority Leader Mitch McConnell praised Romney’s “long and honorable career on the national political stage” on the Senate floor Wednesday.

“Mitt Romney’s repeated success in public office is a testament to his transcendent appeal of his character,” McConnell said, citing his work as Massachusetts governor and Utah senator. “As it turns out, uncompromising honesty, earnest humility and evident devotion to faith and family are as compelling in Cedar City as they are in Concord.”

“Of course, a certain telegenic quality, dare I say, a presidential aura, doesn’t hurt either,” McConnell continued.  

McConnell said Romney made himself a “linchpin” for bipartisan negotiations, and “managed to cram more into six years than many colleagues fit in in 12 or 18.” 

Romney, too, celebrated his work on the Bipartisan Infrastructure Law, the Electoral Count Reform Act, gun safety legislation and religious protections in marriage legislation, saying that he “will leave this chamber with a sense of achievement.” But he acknowledged that he will “also leave with a recognition that I did not achieve everything I had hoped.”

Romney said “the scourge of partisan politics” has prevented efforts to stabilize the nation’s debt, stressing that without the “burden” of the interest on the debt, the nation could spend three times as much military procurement, or twice as much on Social Security benefits every month. 

McConnell noted that observers might have wondered after Romney’s governorship and bid for the presidency what more he had to prove as he came to the Senate.

“It wasn’t about what he had left to prove, but what he had left to give,” the GOP leader said.