3 ways seniors can lower their credit card debt in 2025

The end of a calendar year is always a smart time to reconsider your financial health. Unfortunately, for many Americans, the last few years have been a time of economic burden. And the numbers support this reality: Credit card debt hit a cumulative record of $1.17 trillion in the third quarter of 2024. The average American is currently saddled with around $8,000 in credit card debt alone, not accounting for other types like mortgages, student loans and auto loans. Considering that the average credit card interest rate just surged to a record 23.37%, this sort of debt can become crippling for most people.

While these figures are particularly troubling and difficult to contend with, they can be even more burdensome for seniors and retirees dependent on limited budgets to make ends meet. For these Americans, high-rate credit card debt can be the difference between living a comfortable and financially independent life – or not. And with the recent Social Security cost-of-living adjustment the lowest it's been since 2021, there may not be many obvious ways to dig out of this financial hole without help.

Fortunately, there are some valuable and effective ways to tackle this credit card debt, many of which seniors may want to start exploring now, with an eye toward regaining their financial freedom in 2025. Below, we'll break down three critical ones to know. 

Explore the credit card debt relief options available to you here now.

3 ways seniors can lower their credit card debt in 2025

Here are three effective ways seniors can start lowering their credit card debt in 2025:

Credit card debt forgiveness

Credit card debt forgiveness can result in you having 30% to 50% of your current debt balance forgiven, significantly reducing what you owe. But you'll need to qualify for credit card debt forgiveness to take advantage. That means having at least $7,500 in outstanding debt, proof of financial hardship, and, likely, multiple missed payments demonstrating a consistent inability to pay. Still, credit card debt forgiveness takes time to be effective, so if you qualify for this help, it makes sense to apply sooner than later.

Check your credit card debt forgiveness eligibility online today.

Balance transfer cards

Balance transfer cards do exactly what their name implies: They transfer your existing credit card balance from one or multiple cards to a single one. While, on the surface, they may not seem like a smart move, the details matter. If you have cards around that average 23% rate right now and can transfer them to one with a 0% introductory rate, it makes sense to do so. 

By making this move, you can temporarily halt all the money you otherwise would have been paying toward interest and instead use it to reduce your principal balance. But these low or 0% rates don't last forever and offers will be dependent on your financial situation and the lenders available. So if you know you want to pursue this alternative, it behooves you to start exploring your options right now, before the new year commences. 

Debt consolidation loans

With a debt consolidation loan, the same basic concept applies as it does for balance transfer cards. You'll combine your debts into one, single loan, usually with a much lower interest rate. You'll then make your payments toward this loan instead of spreading them out among multiple credit card companies. This can save you time and money. 

That said, you'll need to qualify for this new loan type and if you've already damaged your credit standing with extensive debt, the loan type and rate you qualify for may not be particularly advantageous. So weigh this possibility against the other two debt relief options to better determine which one makes the most sense for your financial situation.

The bottom line

There are a variety of ways seniors can tackle their credit card debt both now and in 2025. The key, however, is simply getting started. With rates high, debt compounding, and the likelihood of credit card interest rate declines small, it makes sense to take action now. By doing so, seniors can position themselves for greater financial freedom both in 2025 and in the years that follow.