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As President trump/”>donald trump continues to negotiate the rate of tariffs that countries will ultimately pay to do business with the U.S., Americans are already feeling the pinch of higher prices — and many worry about their ability to pay down debt.
About 78% of survey respondents say Trump’s tariffs, or taxes on imported goods, will make it harder to manage or repay debt, according to a recent report by Zety, a resume templates site. The survey polled 1,005 U.S. employees on April 12.
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Trump’s trade policy has included threatening sharply higher tariffs, and then changing his stance soon after, as a negotiating tactic with other nations.
“Tariffs are clearly one of his favorite tools in the toolbox,” said Mark Hamrick, senior economic analyst at Bankrate.
What tariffs mean for consumers’ debt
The administration’s tariff policy will make prices on many everyday goods go up. According to a mid-June report by the Budget Lab at Yale University, tariffs could cost an average $2,000 per household in 2025. The analysis is based on tariffs in place as of June 16.
Tariffs have also influenced the interest rates consumers pay on their debt. Levies have added to uncertainty in the economy, leaving the Federal Reserve reluctant to lower its benchmark rate.
Federal Reserve Chair Jerome Powell said during a panel on Tuesday that the central bank would have cut rates this year if not for the president’s tariff plan.
The Fed has held interest rates steady at 4.25%-4.5% since December.
While that federal funds rate sets what banks charge each other for overnight lending, it also directly impacts borrowing and savings rates for Americans. In fact, the bank’s inaction on rates has kept credit card rates near record highs.
It’s important to create a strong “financial foundation” as uncertainty in the economy lingers, according to Matt Schulz, the chief credit analyst at LendingTree.
“Put yourself in the best possible situation by building your emergency savings and knocking down that high-interest debt,” Schulz said.
Here are three ways to get a handle on your debt despite economic headwinds, according to experts.
1. Ask your lender for a better rate
The first thing you want to do is contact your lender or credit card issuer and ask if they are able to lower your annual percentage rate, experts say.
The APR is generally the total borrowing cost of the loan plus any additional fees, per the Consumer Financial Protection Bureau.
The average interest rate on credit cards is 24.33%, according to LendingTree. But the rate your issuer offers depends on factors like your credit history.
If you have “really good credit,” you can expect to be offered a 20.79% APR; but if your credit is not so stellar, the rate you pay could be as high as 27.87%, the site found.
2. Apply for a 0% balance transfer card
Look into a 0% balance transfer credit card, which is “the best weapon that you have in the fight against credit card debt,” said Schulz.
These offers allow you to move existing credit card debt to a new card and pay little to no interest charges for a set period of time, making a “huge difference,” he said.
But do your homework before you apply and pick the card that best suits your situation, Schulz said.
Bankrate’s Hamrick notes, however, that these kinds of balance transfer options are typically reserved for those with good credit. You generally need a credit score of 690 or higher to qualify, and you might incur a transfer fee in addition to other requirements, according to NerdWallet.
3. Pay debt with a low-interest personal loan
A low-interest personal loan “can be a really good choice” to pay off credit card debt because you can “knock your interest rate down,” Schulz said.
Borrowing costs for personal loans tend to be lower than interest rates on credit cards. But many factors can determine the rate you get for a personal loan, including your credit history and your servicer, per NerdWallet.
For example, the average APR for a two-year personal loan from a commercial bank was 11.66% in February, according to the Federal Reserve. Meanwhile the average rate on a three-year loan through a credit union was 10.75% in March, per National Credit Union Administration.
Be mindful that there is risk involved because you are taking on a new line of credit, and you are tied to a static loan payment for a period of time, Schulz said.
