Credit Card Balances Rose By $21 Billion In Q2 2026—Here’s A Strategy To Lower Your Debt

‍Outlet: Forbes Advisor
Author: Lindsey Crossmier

Key Takeaway

A lower interest rate can help with repayment, but it doesn’t resolve a monthly budget shortfall. Before moving debt to another card, understand the costs, promotional terms and payment you can realistically afford.

Michael McAuliffe Discusses Growing Balances and Balance Transfers

Family Credit Management President and Founder Michael McAuliffe contributed to Forbes Advisor’s coverage of a reported $21 billion increase in credit card balances during the second quarter of 2026.

McAuliffe discussed the pressure essential expenses place on households and cautioned readers to evaluate promotional credit card offers carefully:

“It’s important to read all the terms thoroughly” -Michael McAuliffe, Family Credit Management, in Forbes Advisor

Understand Why Your Balance Is Growing

Before choosing a repayment strategy, review what is adding to your debt.

Are interest charges keeping your balance high? Did an unexpected expense create a temporary setback? Or are you regularly charging groceries and other necessities because your income doesn’t cover your bills?

Those situations require different responses. Moving a balance may reduce interest costs, but if you still need to borrow for everyday expenses, your total debt could continue growing.

Family Credit Management’s financial education resources can help you organize your spending and identify where your budget needs attention.

Look Beyond the Promotional Rate

When comparing a balance transfer offer, check:

• Whether the promotional rate applies to transferred balances
• Any balance transfer fee
• How long the promotional period lasts
• The interest rate that applies afterward
• Payment requirements and consequences of late payments

Estimate the monthly amount needed to repay the transferred debt, including any financed transfer fee, before the promotion ends. Compare that amount with what your budget can consistently support.

Also consider how you will handle future purchases. Paying down a transferred balance becomes harder if new charges keep increasing what you owe elsewhere.

Compare Your Options Before Moving the Debt

A balance transfer is one possible approach. Depending on your circumstances, you may also want to ask your current creditors about available assistance or explore other ways to lower credit card interest rates.

If you’re unsure which approach fits, Family Credit Management can help you review your budget and repayment options. Learning how a Debt Management Program works can give you another option to discuss with a counselor, particularly when you’re managing several accounts.

You don’t need to arrive with a solution already chosen. Start with your statements, your questions and an honest picture of what you can afford.

Read the Full Forbes Article

Read Forbes Advisor’s coverage of rising credit card balances and a strategy for reducing debt

Considering your next move with credit card debt? Request a free quote from Family Credit Management to explore a repayment approach that fits your situation.