Credit card debt is the kind of money problem that can look manageable until the interest starts doing the work.
New York Fed data show credit card balances stood at $1.25 trillion in Q1 2026 after a seasonal decline from the previous quarter. Good Morning America tied that number to household budget pressure and offered practical advice for borrowers trying to lower the cost of carrying balances.
The problem is not only the amount owed. It is the rate attached to it. GMA reported the average rate for a new credit card was 23.7%, a level that can make even small balances harder to pay down.
The debt is large, but some borrowers may still have levers to pull.
The first move is asking for a lower rate. Matt Schulz, LendingTree’s chief credit analyst, told GMA that too few people ever ask. According to LendingTree (TREE) survey data cited by GMA, more than four out of five cardholders who ask receive a lower rate.
That does not mean every borrower will get relief, or that issuers will cut rates dramatically. But a short call can matter when the alternative is paying high interest for another month.
The second move is a balance transfer, if the borrower can qualify and understands the rules. GMA cited expert advice describing a 0% balance transfer card as one of the strongest tools against card debt. The catch is that fees, expiration dates, and new purchases can erase the benefit if the payoff plan is not realistic.
The third move is choosing a payoff strategy. Some borrowers attack the highest-rate debt first. Others start with the smallest balance to build momentum. The right method depends on whether the household needs the fastest math win or the fastest emotional win.
What matters most is that the plan stops the balance from drifting. Inflation pressure can make that difficult when groceries, gas, and other basics are already squeezing households, but the cost of waiting is real when interest compounds.
One phone call, one transfer offer, or one clear payoff order may lower the pressure before another month of interest lands.
For borrowers, the question is not whether the national number is alarming. It is whether their own next statement can be made less expensive.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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