Credit Card Interest Rates Are On The Rise—How You Can Tackle Your Debt – Forbes Advisor

Credit cards come with a plethora of perks, but it’s always good practice to only put purchases on a card you’re sure you can pay off each month, especially with credit card interest rates on the rise.

Credit card interest rates have been climbing for months according to CNBC, with the average July interest rate in Forbes Advisor’s credit card inventory clocking in at 25.27%. Our calculation includes cash back, airline, hotel, flexible rewards, student, 0% APR, balance transfer and business credit cards.

Meanwhile, debt has also been climbing, with the average American’s credit card debt at $6,371 as of Q1 2025, according to TransUnion, up 26.8%—or $1,345—from 2022. 

Those who are being hit with the full force of interest rates know how painful it can be, especially if you’re sitting on a balance of thousands of dollars. Should the Federal Reserve lower interest rates, it likely wouldn’t make a noticeable difference in your debt, as credit card annual percentage rates (APRs) are unlikely to be affected. 

How You Can Tackle Your Debt

Though it may sound counterintuitive to open up a credit card to tackle credit card debt, 0% APR credit cards are your best bet. While they may come with a balance transfer fee, a 0% intro APR card will give you an allotted length of time to pay down your balance before interest kicks in, giving you room to breathe. 

At the current average interest rate of 25.27%, the average consumer with credit debt in Q1 2025 stood to pay about $134 monthly and nearly $1,610 in a year. Paying a 3% to 5% balance transfer fee to lock in a 0% introductory rate may represent significant savings in the long run. See how much you can save with our balance calculator.

Consumers should prioritize paying off their debt, especially if they need to apply for a loan in the future. The sooner you pay off your credit card debt, the better your credit score will fare. The system works full-circle as financial responsibility pays off—the better your credit score, the better credit card offers and loan terms you’re offered in the future.

The Best 0% intro APR Credit Cards

Some 0% intro APR credit cards come with generous welcome offers, which you can use to offset the balance transfer cost. When choosing a card, keep in mind the duration of the 0% intro APR period. If you have more debt, pick the card with the longest term to give yourself the most time to pay it down. Most cards offer benefits past the introductory period and may be worthwhile to hold onto for a longer term.

• Chase Freedom Unlimited®: Offers $200 cash back after spending $500 on purchases in the first 3 months from account opening, and a 0% introductory APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.99% to 28.49% applies. An intro transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater, applies in the first 60 days of account opening. After that, a fee of either $5 or 5% of the amount of each transfer applies . Additional perks include 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases. Annual fee: $0
• U.S. Bank Cash+® Visa Signature® Card*: Offers $200 rewards bonus after spending $1,000 on eligible purchases within the first 90 days of account opening with a 0% intro APR on purchases and balance transfers for 15 billing cycles, then a standard 18.49% to 28.74% variable APR applies. A balance transfer fee of 3% ($5 minimum) applies and balances transferred must be completed within 60 days from account opening. The card also offers 5% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Travel Center, 5% cash back on your first $2,000 in combined eligible purchases each quarter on two categories of choice, 2% cash back on one everyday category such as gas stations, grocery stores or restaurants (excludes discount stores/supercenters and wholesale clubs), and 1% cash back on all other eligible purchases. Annual fee: $0.
• Capital One VentureOne Rewards Credit Card: Offers 0% intro APR on purchases and balance transfers for 15 months, 19.24% to 29.24% variable APR after that; 3% balance transfer fee for the first 15 months, 4% at a promotional APR that Capital One may offer you, with a welcome offer of 20,000 miles after spending $500 on purchases within 3 months from account opening, equal to $200 in travel. The card earns decent rewards even after the introductory period, including 5 miles per dollar on hotels and rental cars booked through Capital One Travel and 1.25 miles per dollar on every other purchase. Annual fee: $0.

See our full list of the best 0% APR credit cards of 2025.