Americans' credit card debt has risen to a record $1.277 trillion, according to the latest numbers. And the number of people behind on payment is as high as its been in 15 years.
So, how can you start getting ahead of a high credit card balance? Jeannine Lynch, Mountain America Credit Union, joined us with some helpful advice.
Credit card debit is hard to pay down because unlike fixed-payment debit like a mortgage or auto loan, a credit card payment can change a lot from month to month.
What may be a small and manageable payment at first can start to grow until it becomes bigger than you anticipated.
Plus, you still may be using the card, which makes the balance grow.
Interest charges can also make it difficult to pay off the balance.
The average rate is 24 percent.
If you carry a balance for more than a month, you will incur interest charges. New purchases keep coming in, and interest keeps being charged. Both of these issues affect people paying only the minimum amount, making it incredibly slow to make a dent in your balance.
Mountain America recommends making more than the minimum payment if you can. Just $10 extra per month could reduce the payment time by years and save the cardholder hundreds of dollars. Consumers with high credit card interest rates should also consider transferring their balances to a lower rate card.
For example, Mountain America's credit card ranges from 11.49 percent to 18.00 percent, making it a great option when compared to national average credit cards. If you made the same payment you would make on a higher interest card, this low rate would further speed up the payoff and save you even more money on interest.
Most large credit card companies charge 3 percent to 5 percent fees of the transferred amount, which can be discouraging if you have a large balance. Many credit unions have low or no fees. Mountain America doesn't charge for balance transfers. In fact, currently they'll pay you. Through May 15, 2026, Mountain America is running a special promotion where you get 3 percent cash bonus of the transferred amount, up to $500.
By taking advantage of Mountain America's limited-time offer, you can potentially secure a lower interest rate, consolidate your debt from higher-rate loans and credit cards, possibly pay off your debt faster, and switch to an account with better benefits. In addition, you can use the 3 percent cash bonus as extra pocket change, or apply it to your balance and pay off your card even faster.
Visit macu.com/transfer or stop by any of Mountain America's more than 100 branches to apply.
*****Loans on approved credit. Maximum bonus for the calendar year is 3% of the credit limit on your Mountain America credit card up to $500. Not available on balances transferred from an existing Mountain America loan. Business accounts not eligible. Balance transfers accrue interest from the date the transaction is processed. Cash bonus is considered interest and will be reported on IRS form 1099-INT. Variable annual percentage rate ranges from 11.49% to 18.00% based on card type and creditworthiness. 1% foreign transaction fee. Membership required—based on eligibility. Terms, conditions and exclusions apply. This limited-time offer ends 5/15/26 and can change or be withdrawn at any time.*****
