The average credit card interest rate is almost 24%, trapping Americans in debt. How to negotiate for a better rate

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With credit card interest rates near record highs, you might feel like it’s impossible to pay down your debt.

In early 2025, Jadell Lee of Sacramento was hoping for even a small break on his interest charges, so he agreed to be part of an experiment to see if calling major credit card issuers and simply asking for a lower interest rate could actually work (1).

In some cases, it worked.

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The experiment, run by CBS13 and the Call Kurtis consumer investigative team, created a script that consumers could use when calling their credit card company.

All they had to do was call, follow the script and hope for the best.

Lee owed $34,000 on nine credit cards, some with an interest rate of close to 30%. He gave the experiment a try with three of his credit cards: While two of the credit card companies said there wasn’t anything they could do, another offered him an option of 0% interest for 12 months on anything he purchased during that period.

“I can focus on paying down credit card debt, and not thinking that 28 percent — whatever the balance is — gets caked on each month. I’ll take it,” he told CBS13.

Lee’s victory might seem small to some, but it makes a big difference to him — and many others in his position.

Here’s what Americans are dealing with when it comes to credit card debt, and what you can say to your credit card issuers to try to get a lower rate.

Millions of Americans are trapped in a cycle of debt

When it comes to credit card debt, one of the biggest problems faced by Americans is high interest rates.

As of January, the average APR — which is the yearly cost of borrowing, including both interest rates and fees — offered for a new credit card was 23.77%, according to LendingTree (2). And while that’s trending downward from previous months, it’s still high. In fact, Forbes Advisor notes that those with a bad credit score could end up paying up to or more than 30% (3).

This is problematic because on a high-interest card, more of your money goes toward paying off interest than paying down the principal. That means it takes longer to chip away at your balance. And, if you’re only able to make minimum payments, your debt keeps ballooning.

To put that into perspective with some numbers, for someone with a balance of $7,000 at the current rate of 23.77%, making monthly payments of $250 will require over three years to pay off their credit card — and they’ll spend an additional $3,309.33 on interest and fees.

The consequence is that high interest rates can leave you trapped in a cycle of debt, which is exactly what Lee was experiencing — watching nearly 30% interest pile onto balances each month — making it harder and harder to obtain meaningful progress.

CNBC reports that many consumers across the country are trapped in a similar cycle to Lee’s (4). As credit card and other personal debt hit a new record high of $1.28 trillion in the fourth quarter of 2025, the Federal Reserve Bank of New York also reported that debt and spending patterns are diverging (5).

“You see evidence consistent with a ‘K-shaped’ economy,” a Fed researcher told CNBC (4). “Some groups are really struggling.”

A K-shaped economy is one where different income groups perform very differently, often leading to widening wealth gaps.

Don’t be afraid to ask for debt consolidation

Of course, just asking credit card companies for more favorable loans won’t always work. If you want to lower your interest payments while you repay your debt — and your interest rate isn’t negotiable — there are other ways.

Consider using a debt consolidation loan, which helps you pay down your debt faster by creating one manageable monthly payment.

A platform like Credible can help you consolidate all your debts into a personal loan.

Through Credible’s online marketplace, finding the right loan becomes much simpler. Credible lets you comparison-shop for the lowest interest rates with just a few clicks.

In less than three minutes, you’ll see all the lenders willing to help pay off your credit cards or other debts with a single personal loan.

If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.

With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.

If you’re eligible, they can negotiate settlements with your creditors until all of your enrolled debt is resolved.

Read More: Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast

Hanging onto a lifetime of debt

If you still aren’t sure about taking matters into your own hands, is it possible somebody else will do it for you?

President Trump has at least taken notice of the problem. On Jan. 9, 2026, he posted on Truth Social, calling on major credit card companies to cap interest rates at 10% by Jan. 20, saying Americans were being “ripped off” by their lenders (6).

However, as USA Today reports, this call went unheeded (7).

“For anybody who’s looking at their billing statement, waiting for it to go from 20 to 10, I wouldn’t hold your breath,” said Stephen Kates, a financial analyst at Bankrate.

That’s perhaps why nearly 2 in 5 Americans say they’ll have more credit card debt by the end of 2026, and 42% think they’ll have credit card debt their whole life, according to WalletHub’s most recent Credit Card Debt Survey (8).

It’s also not surprising that 1 in 5 Americans who were surveyed said they’re “very stressed” about their credit card debt.

Yet, many cardholders don’t realize rates can sometimes be negotiable — or they assume banks will automatically say no. But even small reductions in interest rates can translate into hundreds or thousands of dollars saved over time.

For example, someone carrying $10,000 in credit card debt at a 28% APR would pay roughly $233 in interest in the first month alone. If that rate were reduced to 20%, the monthly interest would drop to about $167.

That’s a difference of roughly $66 per month, or nearly $800 per year. More importantly, that’s money that could instead go toward paying down the principal balance.

How (and when) to negotiate a better credit card interest rate

If you’re now convinced you want to try to get a lower interest rate on some of your credit card debts and are looking to test the waters for yourself, you should probably plan ahead before calling.

For example, the script developed by CBS13 and the Call Kurtis consumer investigative team starts by asking about your current interest rate, then saying, “I’ve been a loyal customer. I’ve noticed other banks are offering lower interest rates. Even zero percent on balance transfers. I was curious how low you can get my interest rate (1).”

Experian, one of the three major consumer credit reporting agencies alongside Equifax and TransUnion, also suggests you start with the credit card issuer you’ve had the longest history with — particularly if you’ve consistently paid your bills on time. Or, start with the one that has the highest interest rate (9).

“While the issuer isn’t guaranteed to say yes, you’re most likely to find success if you have a history of on-time payments and your credit score is good or has recently increased. Sharing personal circumstances like unemployment or other financial difficulties can also help you make your case,” according to Experian.

You could also mention that you’ve received offers from competitors for cards with lower rates. You’ll have more leverage if you’re a long-time customer with a good payment history or if your credit score has recently gone up.

If they’re not willing to lower your rate indefinitely, you may be able to get a temporary rate reduction, like the 12-month 0% offer Lee secured on one of his cards.

Shopping around for car insurance rates

While you’re negotiating a reduction in your credit card interest rate, you might consider how you can save money on other recurring expenses as well.

According to Forbes, the national average cost for full-coverage car insurance in 2025 was $2,149 per year, or $179 per month (10). However, rates can vary widely depending on your state, driving history and vehicle type.

By using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you’re getting the best deal.

In just two minutes, you could find rates as low as $29 per month, giving you hundreds of dollars extra each year to put toward your debt repayment.

How to climb out of debt using other methods

Once you’ve committed to the idea of renegotiating, it’s worth calling all of your credit card issuers, even ones with lower rates — after all, every little bit helps. In fact, a survey by LendingTree found that 83% of those who asked for a lower interest rate on their credit card in the previous year got one (9).

That statistic alone suggests it’s worth making the call — even if you’re not sure what the answer will be.

However, if you’re trying to get your credit card company to lower your rate but you haven’t had the card long, or you’ve been late with payments, for example, you might have better luck with other strategies, such as balance transfers or debt payoff strategies like the avalanche or snowball methods.

For example, Lee had nine credit cards, so he might have wanted to explore options for consolidating his debt and getting rid of at least a few of those cards.

Another way of getting rid of high credit card balances requires some discipline — but living a frugal lifestyle for a few months or years can help you get your debt under control and open up a life of more financial freedom down the line.

And it all starts with making a monthly budget.

Budget like a king

If you’re looking for an easy way to get into the habit, tools like Monarch Money can give you an overview of your financial situation.

Monarch Money helps you assess your budget and spending habits while planning for the future.

This all-in-one tool can also track your investments and offer personalized advice so you can plan with confidence. Even better, the app is protected by Plaid for secure data integration, and it employs multi-factor authentication at login, so you can keep your accounts safe.

Download the app now for a seven-day free trial and get 50% off your first year with code WISE50.

A debt insurance policy

As you begin to track your spending, you’ll probably find some surprises — and will want to look for ways to trim down your spending to put more funds toward your debt repayment and the other goals that really matter to you.

One of the traps of high credit card debt is that it’s easy to backslide. Using a credit card for unexpected expenses can be devastating when you’ve been working hard to reduce the balance. Something goes wrong, and you suddenly have expenses you weren’t planning for.

That’s why a mainstay of financial advice is building an emergency fund.

Dave Ramsey recommends saving at least $1,000 in a starter emergency fund before you begin your debt repayment journey (11). That way, you can prevent taking on additional debt should the worst happen.

Saving more — up to six months of expenses — is also critical to ensuring you never have to rely on credit cards again, avoiding the major 20% to 30% interest you pay on your balance.

Where to stash your emergency fund

If you are searching for a reliable place to stash your emergency fund, consider a high-yield account like Wealthfront’s Cash Account. It offers both competitive interest rates and easy access to your cash when you need it.

A Wealthfront Cash Account currently offers a base variable APY of 3.30%, and new clients can get a 0.75% boost during their first three months on up to $150,000 for a total APY of 4.05%. That’s more than 10 times the national deposit savings rate, according to the FDIC’s February report.

With no minimum balance or account fees, 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CBS News (1); LendingTree (2), (9); Forbes (3), (10); CNBC (4); Federal Reserve Bank of New York (5); @realDonaldTrump (6); USA Today (7); WalletHub (8); Experian (9); Ramsey Solutions (11)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.