Even credit cards are getting more expensive as inflation pushes average APR over 20% — how to get your balance down now

In a perfect world, we'd all pay off our credit cards each month, maintain perfect credit scores and brush our teeth five times a day.

But stuff happens, and credit card companies depend on that to make a profit. If we all paid on time, every time, they wouldn't earn any money. And, credit card finance charges can add up.

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According to Lending Tree, the average credit interest rates have surpassed 20%, which might make you think twice about opening up a new credit card and adding to your debt.

Here are a few ways to find extra money to chip away at your card debt and beat its rising cost.

Negotiate for a lower interest rate

They might not say yes, but it never hurts to ask. Call up your credit card issuer and ask them to lower the interest rate on your card.

You’re more likely to get approved if you have a history of on-time payments and a strong credit score, but you should also let your issuer know why you want a lower rate — to pay off your debt load.

You might want to start with the issuer you’ve had credit with the longest (they can consider rewarding your loyalty) or the issuer of the card with the higher interest rate (to reduce more of the interest you owe).

You can also ask for a temporary reduction on your credit card’s interest rate for a limited time or until you’re in a better financial position.

Consolidate your debt

Paying a bunch of different bills can be confusing and time-consuming — which is why they often go unpaid and accrue interest.

If you have multiple unsecured debts, and particularly if some have punishingly high interest rates, consider a consolidation plan. You'll be writing one check instead of several, and having one debt consolidation loan with a lower interest rate will save you money in the long run.

Just make sure rolling your various debts into one loan is worth it first. You’ll need a decent credit score (at least 670) to qualify for a better interest rate than what you’re paying currently.

Switch to a balance transfer credit card

Another option for getting rid of those sky-high credit card interest rates is to refinance with a balance transfer credit card.

Look for a card with lower interest rates — some may even offer an introductory 0% APR for a limited time — and make sure the balance transfer fees don’t outweigh what you’re paying in interest. Fees typically range between 3% to 5%.

Issuers will also be looking for borrowers with good credit scores of at least 670. If you qualify for that 0% APR rate, look for a card with the longest promotional period and try to pay off your balance before it expires.

Consider credit counseling

Reach out to a trained credit counselor for help if needed. They can offer advice on budgeting and dealing with housing expenses as well as paying down your debt.

Credit counseling is usually offered by non-profit organizations and you can speak with a professional online, over the phone or in person. Some may even offer free services.

Your credit counselor can also put you on a personalized debt management plan — in which, you’ll make monthly payments to the organization, which will in turn make the separate payments to your various creditors. The credit counselor can lower your monthly payments by negotiating with your creditors to extend your repayment periods or lower interest rates.

Look into the counselor’s qualifications and certifications beforehand. And collect any documents that would give a credit counselor a clear picture of your financial situation, like your income, debt, expenses and assets.

Options you should only use as a last resort

Although paying off your balance quickly is the key to conquering credit card debt, you should try to avoid certain methods.

The following strategies should only be used as a last resort — and even then, probably not at all.

Taking out a home equity loan

Your home equity refers to the portion of your home that you actually own. You have the option of taking a loan against your home equity and using that to pay your credit card bills (you’ll also need to pay off your home equity loan each month in installments).

You’ll pay fixed interest on your loan and it tends to be much lower than credit card interest rates, but there’s a big risk involved. If you can’t meet your monthly loan payments, you could lose your home.

Tapping into your 401(k)

If you have a 401(k) plan through your employer, you might consider dipping into your savings to pay off your credit card debt. However, there are drawbacks to this option as well.