Solutions for High Interest Credit Card Debt

These are not easy times financially for many of us. Everything seems to cost more – housing, home insurance, health insurance, food, and clothes. At the same time, many people are losing their jobs or taking a pay cut to stay employed. When there is not enough money to pay for necessities, people often turn to credit cards. The Federal Reserve Bank of New York published a report showing that household debt increased $197 billion in the third quarter of 2025.

 Credit card debt is a black hole that is very hard to climb out of. The high interest rates on most cards make it difficult to pay the minimum payment. I have been there, and I know that it can take years to pay it off. After the 2008 financial crisis, I used credit to keep my business going. At the time, it seemed like a good decision, and I still have my business, but it took me six years and a lot of interest to pay it off.

 One option for paying off credit cards and reducing interest is to take out a second mortgage. You still have the debt, but at least the interest rate will be much lower than the typical credit card. There are two types of second mortgages: Home Equity Lines of Credit (HELOCs) and Home Equity Loans (HELOANs). 

With a HELOC, you can borrow or draw money multiple times from an available maximum amount. HELOCs usually have adjustable interest rates and, for a period of time, you only have to pay the interest. Alternatively, with a HELOAN, you receive the money you are borrowing in a lump-sum payment, and the rate is usually fixed for the life of the loan.

 If you find yourself accumulating or struggling to pay off credit card debt, please contact me so we can explore options to restructure your debt.