The Federal Reserve cut rates three times in 2025, and card issuers passed almost none of it along. The average APR on credit card accounts actually accruing interest reached 22.15% in the second quarter of 2026 — up from the first quarter, and close to the record highs of recent years. Broader averages across all cards sit near 19–20%, with many new-offer APRs above 25%.
At 22%, a $10,000 balance paid at $250 a month costs about $6,500 in interest and takes more than five years to clear. The rate is the emergency. Here is the sequence that gets people out, in order of preference:
1. Ask. Seriously.
Issuers grant APR reductions to long-standing customers with improved credit far more often than people expect — but almost never unprompted. One phone call: “I've been offered a lower rate elsewhere; can you match it?” The worst case is a no.
2. The 0% balance transfer, used correctly
Promotional 0% transfer windows of 12–21 months remain widely available to good-credit applicants in 2026. The transfer fee (typically 3–5%) is the cost of buying months where every dollar hits principal. It only works with a payoff schedule that clears the balance inside the window — divide the balance by the number of promo months, and automate exactly that payment. Miss the window and the deferred rate makes the fee a pure loss.
3. Consolidate to a fixed rate
If the balance will not clear in a promo window, a personal loan near 13–14% converts revolving debt into a fixed payment with an end date — the full math is in our personal loan rates breakdown. Homeowners can price a HELOC as well, at materially lower rates, with the caveat that it puts the house behind the debt.
4. Attack the utilization flywheel
High balances suppress your credit score via utilization; the suppressed score then disqualifies you from the best transfer and consolidation offers. Paying one card below 30% of its limit — even by shuffling payment order — can lift your score enough to unlock better refinancing terms for the rest. Sequencing matters more than willpower. Our credit and debt guide covers the mechanics.