High-interest credit card debt can significantly drain your finances, keeping some stuck in a cycle of minimal payments and growing balances. And with credit card interest rates averaging well over 20% APR, rates are higher than they've been in decades.

The good news is that there are proven strategies for reducing your credit card bills and interest costs and becoming debt-free faster.

Before we start, here's an important point - the approaches listed below are for those who have been making payments regularly and are looking for ways to save. These tips are not for those whose credit card debts are unmanageable. If you're having serious trouble making credit card payments, contact a non-profit credit counseling agency for help. Sometimes, getting out of debt on your own can be next to impossible, so remember that help is available.

Strategy 1: Negotiate for Lower Interest Rates

The interest rate on your credit card directly impacts the money you spend on debt repayment. Lowering your interest rate, even by a few percentage points, can yield substantial savings.

One of the simplest ways to reduce your credit card bills is to call your card issuer and ask for a lower interest rate. Believe it or not, this straightforward tactic works more often than you might think.

Action Step: Prepare for negotiation by checking your credit score and gathering offers from other credit card companies for leverage. Contact your credit card issuer, highlight your history of timely payments (if applicable), and request a lower interest rate. Be polite yet assertive. If the first representative can't help, ask to speak with a supervisor or someone in the retention department who may have more authority to adjust your rate.

Again, this approach isn't guaranteed, but it's worth a try.

Strategy 2: Explore Consolidation with a Balance Transfer

If you have good to excellent credit, you can significantly slash your credit card bills by transferring your high-interest balances to a card with a lower or 0% introductory rate.

Many balance transfer cards offer 0% interest for a year or more, giving you a valuable window to pay down your debt without accruing additional interest charges.

Action Step: Read the fine print before transferring a balance. Understand the terms, including any fees associated with the transfer and what the interest rate will revert to after the promotional period ends. Plan to maximize savings by paying off as much of the balance as possible during the low or no-interest window. And once you've consolidated with a balance transfer, avoiding new credit card debt is critical. So create a spending plan and stick to it.

Strategy 3: Explore Consolidation with a Personal Loan

For those with high-interest credit card debt spread across multiple cards, consolidating that debt into a single personal loan from your bank or credit union can simplify payments and lower your overall interest rate.

The interest rates on personal loans can vary widely depending on your credit score, income, and other factors. Still, they're often significantly lower than credit card rates. Personal loans also have a set repayment timeline, so you'll know exactly when the debt will be repaid.

Note that a personal loan is not the same as a personal line of credit; it is an open-ended loan you can borrow against as needed – similar to a credit card.

Action Step: Shop around for the best personal loan rates and terms that suit your financial situation. Credit unions and online lenders often offer competitive rates for those with good credit. Ensure the loan repayment plan fits comfortably within your budget and financial goals - and avoid additional credit card debt.

Strategy 4: Create a Repayment Plan

Suppose you cannot lower your interest rates through negotiation, balance transfers, or consolidation. In that case, you can still make progress on paying down your debt by using a focused repayment strategy. Two popular methods for tackling credit card debt are the debt avalanche and the debt snowball. Here's how they work:

With the debt avalanche method, you pay off your highest-interest debt first while making minimum payments on all your other balances. Once your highest-interest debt is paid off, you move on to the next-highest interest balance, and so on, until all your debts are eliminated.

The debt avalanche method saves you the most money in interest charges over time. Still, it can be challenging to stay motivated if your highest-interest debt also has the largest balance.

With the debt snowball method, you focus on paying off your smallest balance first, regardless of interest rate. Once that debt is eliminated, you move on to the next-smallest balance, and so on, until all your debts are paid off.

The debt snowball method may save you less in interest charges than the avalanche method. Still, seeing balances disappear quickly can be motivating and help you stay on track.

Action Step: Whichever method you choose, the key is to be consistent and diligent about allocating as much money as possible to your debt repayment each month. As you pay off each balance, roll over the money you were paying on that debt to the next balance on your list.

Strategy 5: Boost Your Debt Repayment with Extra Income

Finally, one of the most effective ways to slash your credit card bills is to pay more toward your debt each month. And one of the best ways to find extra cash is to boost your income. Here are some ideas for increasing your income to pay off debt faster:

• Ask for a raise at your current job.
• Take on additional hours or shifts.
• Start a side hustle or freelance gig.
• Sell unwanted items.

Any extra money you earn, no matter how small, can be used to repay debt and help you become debt-free faster.

The Takeaway

Cutting your credit card expenses isn't just about reducing how much you owe; it's about smarter financial management and making your money work for you. Remember, the goal is not just to reduce debt but to prevent it from accumulating again.