How to reduce your credit card debt, starting this April

Hope that the Federal Reserve would continue the interest-rate-cutting campaign it started in the final months of 2024 has largely subsided in early 2025. In the first meeting the bank had in January it elected to keep its federal funds rate unchanged. And when the bank met again earlier in March, they again kept it the same. Now, a Fed rate cut is out of consideration until at least early May, when the bank meets again. That will keep interest rates high, compounding the financial difficulty many American borrowers have found themselves in in recent years.

Combined with sticky inflation making everyday costs more expensive, many adults have turned to credit cards. But with rates there near a record 23% currently and compounding interest making even seemingly manageable debt loads quickly impossible to tackle, it's understandable if you find yourself looking for debt relief options and strategies to explore now. Fortunately, there are multiple viable ones to consider, some of which can even start you on the path toward reducing your credit card debt as early as this April. Below, we'll break down three options worth exploring now.

Start by checking your credit card debt forgiveness qualifications here.

How to reduce your credit card debt, starting this April

Tired of dealing with the stress caused by growing, high-rate credit card debt? Here are three effective ways you can start reducing that amount this April:

Credit card debt forgiveness

Also known as debt settlement, this option arguably can make the biggest difference in your credit card debt scenario by potentially reducing it by 30% to 50%. But you'll need to qualify for the help first. That means having credit card debt between $5,000 and $10,000 now, being behind on your payments and having verifiable documentation of any hardship that's caused an inability to pay what you owe. 

That said, credit card debt forgiveness takes time to have an impact and will reduce your balance only after a few years have passed (two to four on average). But that may be worth it if you're out of options now.

Work toward reducing your credit card debt now.

Debt consolidation loans

Technically, applying for a debt consolidation loan will mean taking on more debt (to start). But the details here are important. Debt consolidation loans typically have much lower interest rates than credit cards do, especially now. By applying for a loan in the amount of credit card debt you owe, you can pay off your existing card debt and then just make payments back to the loan servicer. 

This will do three primary things: eliminate your credit card debt in full, save you money by paying a lower rate and streamline your repayment process by paying one loan versus multiple credit cards. Over time, it will also boost your credit score, assuming you make full, on-time payments each month.

Revisit your credit card spending habits

If credit card debt forgiveness or a debt consolidation loan sounds too drastic or simply doesn't apply to your unique circumstances, simply consider revisiting your credit card spending habits. A DIY approach may not have the same immediate impact the above options do, but maybe that's not what you need either. Smarter approaches to credit cards can often be enough. 

This means transferring automatic monthly payments from your credit card, where they can add up over time and accumulate compound interest, to your debit card instead. It can also mean giving yourself a cash budget in between paychecks, at which point once that's run out you stop spending. Only you will know what works and what doesn't — but have you sat down to take a closer look at your credit card spending habits to know the difference? This April could be a smart time to do so.

The bottom line

If your end goal is to reduce, and hopefully eliminate, your credit card debt, this April is a good time to get started. With high rates and compounding interest, it makes sense to be proactive. That extends to exploring credit card debt forgiveness, debt consolidation loans and even simply readjusting your current credit card spending habits. By starting this hard work now, you can improve your financial health as soon as April and, hopefully, get back on track in the months and years to come.