Since the pandemic started in February 2020, Americans have been dealing with high inflation. According to Bankrate.com, groceries cost 23.3% more than they did before the pandemic. At 20.09% as of March 2025, we’re also not seeing much relief in credit card interest rates.
The cost of living makes it important to try to stay on top of debt. But if you’re struggling to make even your monthly payment, there are steps you can follow to help alleviate the burden.
Add up your monthly expenses
Adding up all your expenses and monthly income gives you a better understanding of where your money goes each month. Cutting back in areas like recreation, entertainment, and eating out can help you pay down your card faster.
Call your lenders
If you’re unable to even pay the minimum payment each month, try calling your lenders and asking them to temporarily lower your monthly payment. Be prepared to tell them your monthly income, expenses, and why you’re having financial issues. Remember that this isn’t forever, so make a plan to pay off your debt during this reprieve.
Make an appointment with a credit counselor
Certified credit counseling agencies offer free credit counseling, so you can create a budget, plan for the future, and learn more about financial workshops and educational opportunities. They can also help you get on a debt management plan, allowing the counselor to work with your lenders to consolidate your debt into one payment while lowering your interest rate.
Avoid debt settlement companies
Debt settlement companies may be able to help you get a lower payout, but it’s not guaranteed, and you risk ruining your credit score in the process. They also charge high fees, usually up to 15%–20% of your settled debt.
Stop using your card
Whether you have your credit card linked to an online account, your phone, or you carry traditional old plastic, it’s best to unlink it and leave it at home. It’s too tempting to use it when it’s so accessible.
Bottom line
By taking action to lighten the debt burden, you’ll also allow yourself to pay your debt off more efficiently and feel better about your financial future.