Economic factors, like inflation and potential tariffs, have put financial pressure on Americans, forcing many to turn to credit cards for help. Credit card balances are now at record highs, and with average credit card interest rates nearing 22%, that debt comes with costly consequences. As a result, this type of debt can be overwhelming, to say the least, and even making the minimum monthly payments can leave you stuck in a pricey cycle of debt for years to come. 

Fortunately, there are debt relief tools that can help. "If there's any silver lining to this economic rollercoaster ride, it's the renewed focus on debt solutions companies. When the economy is roaring, these powerful services tend to get ignored. Now Americans are rediscovering their value," Howard Dvorkin, chairman of Debt.com, says. 

But not all debt relief options are created equal. If you want to make sure you tackle your debts in the most effective way possible, it's important to know which debt relief strategies make the most sense in today's unique economic climate.

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The most effective debt relief strategies to use now, experts say

These are the best routes to explore right now, according to the pros:

Debt consolidation

Financial pros say that debt consolidation is likely your best option these days, as long as you choose the consolidation product carefully. 

"With debt consolidation, you consolidate all of your loans into one loan, preferably with a lower interest rate," says Laura Sterling, vice president of marketing at Georgia's Own Credit Union. "Rather than pay multiple loans, you focus on paying one loan, saving money on interest, and streamlining the repayment process."

Some lenders offer designated debt consolidation loans you can use for this purpose or, if you're a homeowner, you can use a home equity loan or home equity line of credit (HELOC). HELOCs are one of the best options right now, according to Patti Brennan, president and CEO of Key Financial, as the "interest rates are much lower than credit cards," she says. The average HELOC rate right now is just below 8%. 

Keep in mind that a new loan will require an application and credit check, so these aren't the best options if you have bad credit. 

"These can be a good fit if the consumer's credit is fair-to-good, and if they can qualify for decent loan terms," says Natalia Brown, chief compliance officer at National Debt Relief. "The only downside is that it might require collateral and could stretch out the repayment timeline."

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Balance transfer cards

Another option is a balance transfer card. Similar to debt consolidation loans, this strategy involves taking out a new card, paying off your debts and rolling it all into one balance. 

The new card would ideally be one with a 0% or very low promotional interest rate, allowing you to save money on interest and pay off your debts faster. 

"If the customer has good credit and can pay off the debt quickly, a balance transfer credit card might help," Brown says. "The catch is that it needs to be paid off before the introductory period ends, or you'll be left dealing with high interest and fees."

Debt management plan

Debt management plans are another effective option these days. This involves handing your debts over to a debt relief professional or a credit counselor. They will then negotiate with your creditors to try and lower interest rates and fees and come up with a plan for repaying your debts over a specific time period. You'll pay them a monthly fee for this service.

"A debt management plan can help the customer stay organized and on track with monthly payments," Brown says. "However, it doesn't actually reduce the total amount owed and usually takes about four to five years to complete."

Note, though, that debt management plans typically require you to close out any open credit lines. This ensures you don't rack up more debt while paying down your existing balances.

Debt settlement

Another option you might explore right now is debt forgiveness, also known as debt settlement. This requires negotiating with your creditors to pay them less than you owe to close out the debt.

"Debt settlement is one of the most effective solutions for individuals with $7,500 or more in unsecured debt — such as credit card balances, medical bills, or personal loans," Brown says.  

The big downside is that debt settlement requires you to stop making payments while your debts are being negotiated. This can put a big dent in your credit score and hurt your financial options moving forward.

You should make sure to consider the costs, too. 

"They charge a high fee for this service," Sterling says. "You will also likely pay taxes on any debt that is forgiven."

The bottom line

At the end of the day, good financial planning is key if you want to get out of debt. "Create a budget and track your expenses," says Doug Roller, investment advisor representative and owner of Crossroads Financial Group. "You can also call your creditors and see if they can do anything to help you not fall behind on your payments."

There are also debt payoff methods you can try, like the avalanche or snowball. With the former, you focus on paying off your highest-interest debt first, making minimum payments on the rest. Once that's paid off, move on to your next highest-interest debt.  The snowball method is similar, only it focuses on the smaller-balance debts first.

"This method makes the minimum payments to larger debts and puts more money towards the small debt to pay that off faster," Roller says.