People buried in credit card debt tend to reach for credit to get out. Accredited Debt Relief 2026 Everyday Debt Survey found that among those who sought help, 38% began with a balance transfer card, 37% turned to a debt relief program and 29% took out a debt consolidation loan.
A balance transfer lowers the interest rate on a debt often with a low or 0% intro APR, but it does not lower the principal owed. Nationally, credit card balances keep growing. The Federal Reserve Bank of New York’s Household Debt and Credit Report, released Aug. 11, shows balances rose $21 billion in the second quarter of 2026 to $1.26 trillion. Behind that trillion-dollar figure are individual people trying to decide what to do about a balance they can no longer keep up with.
Key Takeaways
- 38% of people who sought help with debt started with a balance transfer credit card, the most common first step.
- 37% turned to a debt relief program and 29% took out a debt consolidation loan.
- 33% say they rely on credit more than they did a year ago, and 29% lean on it every month just to get by.
Credit Bridges the Gap for Everyday Expenses
Rising costs impact the way people use their resources. Thirty-three percent of respondents said they rely on credit more than they did a year ago — and 29% said they lean on it every month just to get by.
National data shows signs of growing consumer hardship, too. In the Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2025, published in May 2026, adults who said they were “just getting by” or “finding it difficult to get by” accounted for 65% of credit card balance growth. In the two prior surveys, that group accounted for 40% — a significant increase in only a few years.
When people become used to leaning on credit to cover basic costs, it also becomes an increasingly important part of weathering rising prices. But the drawback of credit is, as always, the risks that come with holding a balance: that grocery run or covering that bill can cost more over time, thanks to interest. So what does finding financial balance mean when you’re leaning on credit to get by? Finding ways to reduce the cost of borrowing.
Balance Transfer Cards Offer Temporary Reprieve
Balance transfer moves debt from one card to another, typically one offering a low or 0% introductory rate for a fixed window, and charging 3% to 5% of the amount moved as a fee. Because they’re a new line of credit, balance transfer cards also often have a minimum credit requirement to qualify. These cards are a form of credit card refinancing, which improves the terms on a balance without reducing it — but only for a limited time.
The risk of balance transfer cards is what happens if you can’t repay the entire balance before the promotional period ends. If the balance is still there when the introductory rate expires, it returns to a standard rate, potentially even higher than what you were paying before. And that standard rate is steep: the average annual percentage rate on accounts assessed interest was 22.15% in the second quarter of 2026, according to the Federal Reserve’s G.19 consumer credit release published Aug. 7.
What to Do if the Next Card Won’t Solve It
Some patterns suggest a debt problem has outgrown a credit-driven repayment strategy:
- Only the minimum payment is manageable each month
- Cards cover essentials such as groceries, gas or utilities
- A balance has already been transferred once and is still outstanding
- Balances have held steady or climbed despite regular payments
- A card has been maxed out and there is no clear path to bringing it down
None of these are unusual. Credit card balances are up $54 billion over the past year nationally, and the people carrying them are not, as a rule, careless with money — they’re making up for where their income no longer matches the cost of living.
So if you’re stuck in the managing-debt-with-credit cycle, there’s another place you should look for help: Accredited Debt Relief. Our award-winning debt relief program can help you become debt-free in as little as 24-48 months — and saves our clients an average of $608/ month. Explore your options by talking to a Certified Debt Specialist today: There’s no obligation, and it’s 100% free to check your options.
Frequently Asked Questions
What is a balance transfer credit card?
A balance transfer credit card is a type of credit card that lets you move an existing balance to it, usually at a low or 0% introductory rate for a set period. Most issuers charge a transfer fee, commonly 3% to 5% of the amount moved.
Does a balance transfer reduce what I owe?
No. It moves the balance to a different account, generally at a lower rate for a limited time. The amount owed stays the same, and the transfer fee is added to it.
What kinds of debt can a debt relief program help with?
Eligible debt typically includes credit cards, including store cards, personal loans, medical bills and some private student loans. Mortgages and home equity loans, auto loans, federal student loans, tax debt and child support or alimony are not eligible.
Sources Cited
“Household Debt Balances Decreased Slightly; Credit Card Delinquency Transition Rates Remained Steady.” Federal Reserve Bank of New York, August 11, 2026. https://www.newyorkfed.org/newsevents/news/research/2026/20260811
“Report on the Economic Well-Being of U.S. Households in 2025: Credit.” Board of Governors of the Federal Reserve System, May 13, 2026. https://www.federalreserve.gov/publications/2026-economic-well-being-of-us-households-in-2025-credit.htm
“Consumer Credit — G.19.” Board of Governors of the Federal Reserve System, August 7, 2026. https://www.federalreserve.gov/releases/g19/current/
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