Americans are feeling a credit crunch: U.S. consumers held a record $1.21 trillion in credit card debt in the second quarter of 2025, according to the New York Fed. Nearly half of cardholders carry a balance from month to month and the portion who are behind on even the minimum payment has risen to 12.3%, up from 10.9% in 2024 and 8% in 2023.
Credit cards and Buy Now, Pay Later plans make it easy for balances to balloon. And high interest rates mean it’s hard to make a dent in the principal.
If you’re facing this challenge, a debt relief company could help. In exchange for a fee of between 15% and 25%, these businesses will negotiate with your creditors in hopes of getting them to accept less than the full amount you owe.
If they’re…