The Growing Debt Burden in America
If you’re feeling the weight of credit cards, medical bills, personal loans or other debts—you’re not alone. Millions of Americans are struggling with the rising cost of living and ballooning debt balances. Fortunately, there are solutions available to help you regain control of your finances.
The Growing Debt Burden in America
Managing money has become harder since the pandemic. Here are some eye-opening statistics:
Total household debt (2024): $17.94 trillion
Credit card balances (Q3 2024): $1.17 trillion (a record high)
Average credit card balance per American: $6,380
With numbers like these, it’s no surprise that debt relief programs are becoming an essential tool for families across the country.
How to Take Control of Your Finances
What Is Debt Relief?
Debt relief is any strategy designed to make debt easier to manage. The ultimate goal is to help you pay off what you owe—or at least make repayment less overwhelming.
Debt relief programs may help you by:
Lowering your interest rate
Negotiating reduced loan balances
Adjusting repayment terms (shorter or longer)
Waiving late fees or penalties
The right program depends on your type of debt, financial situation, and eligibility requirements.
When to Seek Debt Relief
Debt relief may be the right choice if you:
Can’t keep up with your monthly payments
Have fallen behind on credit cards or student loans
Are constantly stressed about debt and finances
The sooner you act, the easier it is to get back on track. Just as important, you’ll want to stop adding new debt while you work on eliminating existing balances.
Two Types of Debt
Secured debt – tied to an asset, like your home or car (missed payments can lead to repossession or foreclosure).
Unsecured debt – not tied to an asset, usually with higher interest rates (credit cards, medical bills, personal loans).
Spotlight: Credit Card Debt
Credit card debt is the second-largest source of U.S. household debt after mortgages. If your cards are maxed out, relief programs can provide a path forward.
Typical requirements for credit card debt relief include:
A higher credit score (for balance transfer cards or consolidation loans)
A certain minimum amount of debt (to qualify for some programs)
An income review (to determine eligibility for repayment or bankruptcy options)
Can You Do Debt Relief Yourself?
Yes—but it requires discipline and careful planning. Here are some DIY strategies:
Contact creditors directly: Ask about hardship programs that lower interest rates or waive fees.
Negotiate settlements: Offer a lump sum to settle for less than you owe (complex, but possible).
Debt consolidation loans: If your credit is good, you may qualify for a loan with lower interest.
0% balance transfer cards: Useful if you can pay off the balance before the promotional period ends.
DIY debt relief works best if you’re organized and proactive. However, if your debt is large or you’ve missed payments, professional debt relief companies can often negotiate better terms and save you time and stress.
Debt doesn’t have to control your life. Whether you choose to go the DIY route or work with professionals, there are proven ways to lower your payments, reduce balances, and work toward financial freedom. The most important step is recognizing the problem early—and taking action now.