There are plenty of strategies you can use to get relief now if credit card debt is stretching your budget thin.
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As the year winds down, many households are taking a hard look at their credit card balances and realizing that the numbers aren't pretty. Holiday shopping, higher everyday costs due to inflation and the lingering effects of a steep rate environment have pushed many budgets past the breaking point. As a result, even the borrowers who've managed to stay on top of their monthly credit card payments throughout the year may be feeling the strain as December's bills start to roll in.
At the same time, there's a lot of talk about what comes next for interest rates. With the Federal Reserve expected to conduct another rate cut this week, borrowers are hoping for relief — and may even be wondering whether another rate cut could translate to lower monthly card payments. But even the most optimistic forecasts likely won't translate into immediate, measurable changes for credit card APRs, given how fast card rates climb and how slowly they fall.
In turn, it makes more sense to search for practical, near-term help, whether you're worried about falling behind on your growing credit card balance or are already struggling to keep up. Luckily, there are several forms of debt relief available this December, many of which can make a real difference.
Speak to a debt relief expert about the help available now.
What types of credit card debt help are available this December?
Borrowers don't have to wait for policy shifts or major financial milestones to get help with their overwhelming credit card debt this December. The options outlined below — from quick fixes to more structured programs — can offer real relief now.
Hardship programs from your credit card issuer
Most major card issuers offer temporary hardship programs for borrowers facing financial stress. These programs may help you reduce your APR, waive fees, lower your minimum payment, or even pause payments for a short period. While approval isn't guaranteed, and you may need to provide documentation, taking advantage of this type of assistance is often the fastest way to create breathing room without longer-term credit damage.
Learn how to get rid of your credit card debt for less.
Balance transfer credit card offers
If you still have solid credit, taking advantage of a 0% intro APR balance transfer offer can give you 12 to 21 months of interest-free repayment time. During that stretch, no additional interest charges will accrue, meaning that every dollar of your payment goes toward your principal. And, December tends to be a competitive period for these types of offers, so you may have numerous good options to choose from right now. Note, though, that if your promotional period ends and you still have a balance, your APR will jump to the card's standard rate.
Low-rate debt consolidation loans
You may also want to consider taking out a debt consolidation loan with a fixed, lower interest rate. By paying off your credit card debt with a more affordable fixed-rate loan, you could reduce interest costs dramatically. This route also offers a predictable monthly payment with set repayment terms. Approval and rates depend on your creditworthiness, though, so this option works best before your debt becomes unmanageable.
Debt management plans via a credit counseling service
Credit counseling agencies offer structured debt management programs that can help you streamline your payments and lower your monthly costs. When you enroll in a debt management program, the credit counseling agency will work to negotiate lower interest rates with your creditors and bundle your debts into a single monthly payment. These plans typically take three to five years to complete, but they can significantly reduce the total cost of repayment.
Professional debt settlement
For borrowers who are already behind or unable to keep up with their minimum payments, debt settlement may be an option. During this process, a debt relief company negotiates with your creditors to settle what you owe for less than the full amount, generally in exchange for a lump-sum payment. This can have credit score consequences and potential tax implications, but for some cardholders, it can also offer a critical financial reset.
DIY negotiations with creditors
If you prefer to avoid working with a debt relief company, you can try to negotiate directly with your creditors instead. Borrowers who are already delinquent may have more leverage, as creditors may accept a lower payment to avoid getting nothing if you file for bankruptcy. This approach takes persistence, but it can help reduce your balance significantly if your creditors agree on a resolution.
Legal or bankruptcy guidance for severe financial hardship
If your debts have become truly unmanageable and you're facing issues like lawsuits, garnishment threats or have multiple delinquent accounts, speaking with a bankruptcy attorney can help clarify your options. Chapter 7 and Chapter 13 bankruptcy are last-resort tools, but they can discharge or restructure credit card debt when no other path is viable.
The bottom line
December can be one of the most stressful times of the year to deal with credit card debt, but it's also a month when borrowers have multiple avenues for relief. Whether you need temporary support through a hardship program, a structured repayment plan with lower interest, or more comprehensive help through debt management or settlement, the right option depends on your financial situation and your long-term goals. The earlier you explore your options, though, the more control you'll have over your debt heading into the new year.
Edited by Matt Richardson
