Assistance With Credit Card Debt: Know Your Options
If you’re someone who struggles with credit card debt, you’re not alone. Between a skyrocketing cost of living, rising interest rates, and wages that don’t seem to budge, it’s easy to feel like you’ll never get out of debt. However, if you need assistance with credit card debt, you have options.
Whether you’re looking for debt relief or you want to tackle repayment yourself, these are some strategies to help you get started.
There’s no singular way to get out of credit card debt, but depending on your situation, one or more of these credit card assistance options may be helpful.
Wondering who can help you get out of credit card debt? Dealing with debt is hard, but debt relief programs can make it easier. These programs develop a customized plan for you, and they can often negotiate with credit card issuers to lower your balances, meaning you can resolve your debt for less than you owe.
You may wonder—is there government help for credit card debt? There are no government assistance programs specifically designed to help you reduce debt. But you might qualify for other types of support—like help with housing, food, or medical costs—that could free up money to put toward your debt. A credit counselor may be able to point you to helpful resources or refer you to agencies that offer financial assistance.
This strategy isn’t guaranteed to work, but it’s worth a try. If you have a solid repayment history and are hoping to get out of debt faster, consider asking your card issuer to lower your interest rate. Even a small reduction in interest can pay off in the long run.
If you’re having trouble paying your debt because of a temporary problem (like loss of a job or a serious illness), ask your card issuer about hardship programs. Many credit card companies will allow you to pause payments for a few months while you get back on your feet.
When you consolidate your credit card debt, you take out a loan with a lower interest rate than your cards. You use the loan funds to pay off all of your credit cards, and you then repay the loan as agreed. Consolidation loans offer several advantages:
Even with these advantages, consolidation loans can have pitfalls. The Consumer Financial Protection Bureau (CFPB) warns that some lenders try to lure you in with low “teaser” interest rates that increase over the term of the loan. Before committing, always verify that the advertised rate will apply throughout your loan term.
If you own your home and have built significant equity, you may be able to borrow against it and use the funds to pay off credit cards. When you use a home equity loan for debt consolidation, you’ll likely pay less interest than you’re paying to the credit card companies.
However, there’s a catch. The interest rate on home equity loans is low because these loans are secured by your home. This means that if you can’t pay, the lender can seize your home. If you’re considering this option, make sure to carefully consider the risks.
If you have good credit, a balance transfer card with an introductory 0% interest rate may help you save money. However, before you go this route, make sure that you’ll be able to pay the full balance before the 0% interest rate expires.
Credit card debt can be frustrating, and it may be tempting to just stop paying and wait for the debt to come off your credit report. But is it true that after seven years your credit is clear?
Negative items on your credit report (including past-due debts) will stay on your credit report for seven years before coming off. However, depending on your state’s statute of limitations, you could still be sued for the debt.
You still have options, even if your situation feels overwhelming. You can talk to your credit card company about hardship programs, explore debt consolidation, or work with a reputable debt relief company. The key is to take action—avoiding your debt often makes things worse.
If you’re considering debt settlement, National Debt Relief may be able to help. Our program is designed for people who are struggling with unsecured debt like credit cards and need a more realistic path forward. You can check if you qualify in just a few minutes.
The content provided is intended for informational purposes only. Estimates or statements contained within may be based on prior results or from third parties. The views expressed in these materials are those of the author and may not reflect the view of National Debt Relief. We make no guarantees that the information contained on this site will be accurate or applicable and results may vary depending on individual situations. Contact a financial and/or tax professional regarding your specific financial and tax situation. Please visit our terms of service for full terms governing the use this site.
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