Cory Santos

Sun, Jun 15, 2025, 4:09 AM9 min read

If you're handing over $1,100 each month to service maxed-out credit cards, you're not alone.

The average credit card balance hit $6,371 as of the first quarter of 2025, according to a May TransUnion report, while interest rates now hover around 24.33% for new cards.

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That’s significantly higher than the average rates we were seeing only a few years ago. And with inflation rearing its ugly head, that debt burden can seem overwhelming (to say the least).

But there's good news: you can escape this debt trap with the right strategy.

Let's be clear — those wild experiences in your 20s happened. They're part of who you are. But now it's time to rebuild your financial life with the same energy you brought to your adventures.

The most basic advice for someone looking to pay down credit card debt is to consider getting a balance transfer credit card.

Balance transfer cards offer a low interest rate or interest-free way to pay off debt and re-start your financial life, helping you significantly pay down your debt — fast.

How much could you save with a balance transfer? Let’s check out a real-world example based on your particular situation.

Let’s say you transferred $6,371 to a balance transfer card with an 18-month 0% intro APR offer. Your total cost could breakdown as follows:

• One-time balance transfer fee: $6,371 × 5% = $318.55

• New starting balance: $6,371 + $318.55 = $6,689.55

• Monthly payment needed to pay off balance in 18 months: $6,689.55 ÷ 18 = $371.64

• Total interest: $0 (thanks to the 0% APR offer)

• Total cost: $6,689.55 (original debt + fee)

If you used a card with a 21.00% APR on transfers you’d have paid approximately $1,404 in interest over the same period — and that cost could rise significantly should you add to that outstanding card balance.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Of course, not everyone will qualify for a balance transfer card (and especially so if you’re dealing with maxed out credit cards and soaring credit utilization). But don’t worry — you still have options. Here’s what you can do if you’re struggling with a big credit card bill.