Americans owe a staggering $1.14 trillion in credit card debt, a record-breaking figure that shows no sign of slowing down. Credit card balances surged by $27 billion in the second quarter alone, marking a 5.8% increase over the previous year. As debt continues to pile up, more people are finding it difficult to make their monthly payments. If you’re feeling overwhelmed by growing credit card debt, you’re not alone—and there’s hope. Fortunately, there are concrete steps you can take to regain control of your financial situation.

Understanding the Scope of the Problem

Credit card debt is reaching unprecedented levels, and many Americans are falling behind on payments. Delinquencies are on the rise, which can hurt your credit score and lead to feelings of stress and helplessness. But what’s driving this surge in debt? Factors like the rising cost of living, increasing interest rates, and unexpected financial emergencies are all contributors.

No matter how you found yourself in this situation, know that you don’t have to stay stuck in a debt cycle. There are actions you can take to ease the burden.

Step 1: Assess Your Financial Situation

The first step in tackling your debt is getting a clear picture of where you stand. Take a look at your credit card statements and add up what you owe. It’s easy to lose track when bills are coming in from multiple places, but having a complete overview of your debt is crucial.

Next, evaluate your monthly income and expenses. How much are you spending versus what you’re bringing in? This will help you identify gaps where you can cut back. Knowing your debt-to-income ratio can also give you insight into whether you need external help to manage the situation.

Step 2: Stop Adding to the Debt

When your credit card debt is already overwhelming, the last thing you want to do is add more to it. It’s time to hit pause on your spending. One way to do this is by freezing your credit cards—either literally in a block of ice or by using services that limit your spending.

Adopt a needs-only budget for now, focusing on essentials like housing, utilities, and groceries. Cutting out non-essential expenses will free up cash that you can redirect toward paying down your debt.

Step 3: Reach Out to Creditors

You might be surprised—your credit card company may be more willing to help than you think, especially if you reach out before you fall too far behind. Call your creditors and ask if they can lower your interest rate or offer a hardship program.

Creditors would rather work with you than have you default on your payments, so they may be open to negotiating. Whether it’s reducing your interest rate, waiving late fees, or extending your payment terms, a little persistence can make a big difference. If the first answer is no, don’t be afraid to call back and ask again.

Step 4: Develop a Personalized Payment Plan

Once you’ve stopped adding to your debt and spoken with your creditors, it’s time to create a realistic plan to pay off what you owe. Two common strategies are the Avalanche Method and the Snowball Method. The Avalanche Method focuses on paying off the card with the highest interest rate first, while the Snowball Method targets your smallest balances first. Either approach works, as long as you stay consistent.

Set up automatic payments to ensure you never miss a deadline, and track your progress. Watching your debt decrease over time can be incredibly motivating.

Step 5: Consider Consolidation or Balance Transfer Options

If you’re managing multiple credit card payments, consolidating your debt could simplify things. A debt consolidation loan combines all your debts into one monthly payment, often at a lower interest rate. Alternatively, a balance transfer credit card with a low or 0% introductory APR could help reduce interest charges.

Before you commit, though, read the fine print. Balance transfer cards, for example, may have fees or high interest rates after the introductory period ends. Make sure the savings outweigh the costs.

Step 6: Seek Professional Financial Assistance

If you’re feeling overwhelmed and unsure of your next steps, it might be time to get help from a professional. Nonprofit credit counseling agencies can assist you with budgeting, negotiating with creditors, and setting up a debt management plan. These services are often free or low-cost and can give you a clear roadmap for tackling your debt.

Be cautious, though, of for-profit debt settlement companies, which may charge high fees or harm your credit even further. Nonprofit credit counseling is usually a safer and more effective option.

Step 7: Avoid Dangerous Pitfalls

In your effort to pay off debt, it’s easy to fall into traps that promise quick fixes but lead to bigger problems. Payday loans, for example, can trap you in a cycle of high-interest debt that’s even harder to escape. Likewise, some debt settlement offers sound too good to be true—and they often are.

Watch out for scams. If a company asks for upfront fees or makes bold guarantees, consider it a red flag. Do your homework and stick with reputable, nonprofit organizations.

Step 8: Build Better Financial Habits for Long-Term Stability

Once you’ve made progress in paying off your debt, it’s important to ensure you don’t end up back in the same situation. Start by building an emergency fund to cover unexpected expenses, so you won’t have to rely on credit cards in the future.

Learning to use credit responsibly is crucial for long-term financial health. That means paying off your balance in full every month when possible and only using your card for purchases you can afford to pay off immediately. Also, stick to a budget that includes saving and investing for your future.

Conclusion

Credit card debt in America is at an all-time high, but that doesn’t mean you’re powerless. By taking the right steps today, you can break the cycle of debt and regain control of your finances. From negotiating with creditors to developing a personalized payment plan and building better financial habits, every small step brings you closer to a debt-free future. The journey may be challenging, but the reward is a more secure and stress-free financial life.