Paying off credit card debt is getting harder. Here's what you can do

The holiday season may be over, but many are now struggling to deal with all those bills.

It’s no surprise. A national survey by Bankrate found more and more people are taking longer to pay off their credit card debt.

Jose, who lives in Miami, told NBC6 he normally pays with cash, but the rising cost of living drove him to use his credit card.

"…I had to put it on a credit card, like, I'm still paying off," he said. "It’s a little bit tough right now because inflation right now is high and a lot of people are struggling.”

Another consumer, Remy, echoes this sentiment. 

"I usually take care of it, but it is stressing me out a little bit with all the prices," Remy said. "It’s crazy.”

The Bankrate survey, with over 2,000 participants, revealed a worrying trend. Nearly half (49%) of credit card holders are carrying their debt month to month and 58% have been in this situation for over a year. 

"We're seeing more people carrying more debt for longer periods of time,” said Ted Rossman, a Senior Industry Analyst at Bankrate. 

The survey points to emergency expenses are the leading cause of credit card debt. 

“It's one of these cycles that's easy to get into and hard to get out of,” Rossman said. 

He says inflation and rising interest rates are also big factors. 

"More people are financing daily essentials like gas and groceries," he said.

Rossman says the average credit card interest rate hovers around 21%, but for many, especially those with lower credit scores, rates can reach 25% or 30%.

Another trend consumers need to watch out for is the "buy now, pay later" payment method. Shoppers used this option in record numbers during the holidays, contributing a massive $16.6 billion to online spending, according to Adobe Analytics. 

While consumers like Remy find it appealing, experts warn it could lead to deeper debt.

"I haven't tried it out because I don't want to keep, like, piling stuff out, but I think it's a cool program," Remy said.

”I am concerned about it, I think that ‘buy now, pay later’ is this kind of shadow debt," Rossman said. "I say shadow because it's often not included on credit reports. There's not always great data about how much of this debt people have, but it is still debt."

He says that many may see "buy now, pay later" as a simple, short-term solution, usually without interest for six weeks, but people could end up spending too much when they use several plans with different providers. He also says to be cautious about longer plans – they come with interest rates as high as 30%.

If you're struggling to secure a balance transfer card with a low interest rate for reducing your credit card debt, Rossman says a good alternative is nonprofit credit counseling. These agencies can help negotiate a repayment plan with creditors, often achieving rates around 7 to 8% over four to five years. 

Also, consider reducing non-essential expenses and increasing your income. For example, taking on a side job if you can, selling unnecessary items, or cutting back on extra purchases.