5 Little-Known Perks Even When Credit Card Debt Hits $1 Trillion

America's total amount of credit card debt recently passed $1 trillion. That's equal to one thousand billions, and there are approximately 335 million Americans. So that means America now has about $2,985 of credit card debt for every person (adult and child) in the country.

The U.S. economy, in many ways, is stronger than it's ever been. Unemployment is low, and wages are rising. But many Americans have suffered during the past few years of rising interest rates and high inflation. They've depleted their savings accounts and are getting hit hard by the rising prices of necessities.

When interest rates go up, credit card APRs go up, too. In a time of rising interest rates, if you're struggling to pay credit card bills on time, making only the minimum payments, or carrying a balance, your high-interest debt will get harder to pay off.

But even though credit card debt has hit $1 trillion, there are still some worthwhile advantages to using your credit card -- and signs of hope for people who need help getting out of credit card debt.

1. Credit cards give you easy payments and fraud protection

Some people who are struggling with credit card debt might want to cut up all their cards and use the cash stuffing or envelope method to pay bills and buy groceries. If the easiest way for you to avoid overspending is to only spend cash, then feel free to try that method. But many people find that they prefer to use credit cards to make everyday payments at the grocery store, or even to pay monthly bills.

Here are a few reasons why credit cards are a good choice for making payments.

You don't have to carry cash

If you use the cash stuffing/envelope method, do you really want to carry hundreds of dollars with you every day, and potentially keep thousands of dollars in your home? Cash can be risky. What if someone steals your cash, or you lose it? Do you want to make multiple runs to the ATM each month to get more cash?

Credit cards keep you supplied with convenient purchasing power and protect you from fraud. If someone steals your credit card, you most likely won't have to pay for any charges they make.

You can pay online

You can't use cash to pay for grocery delivery apps, ridesharing services, or online purchases. If you buy groceries or other month-to-month necessities online or via subscription, cash won't work. Credit cards open up a world of convenience to help you get what you need for your everyday life.

You can pay anytime, instantly

Paying only with cash is cumbersome and time-consuming. If you want to use cash to pay a bill (like your cellphone service or home internet plan), you have to go to an office or store location and stand in line. What if you can't get there during business hours? What if you end up getting your phone cut off, as well as having credit card debt?

Credit cards let you make a payment 24 hours a day, 7 days a week, from anywhere on Earth. No standing in line required! Switching to cash-only is one strategy to pay off credit card debt, but the convenience and security that you lose might not be worth it.

2. Debt payoff apps and budgeting apps can help

There are so many great personal finance apps that make it easier to control your spending and pay off debt. The best budgeting apps can show you exactly where your money is going each month. The best debt payoff apps can help you set aside money and make debt payments automatically -- just by analyzing your spending patterns.

Some of the best online banks even have multiple savings "envelopes" built right into your bank account. Check out Ally Bank's savings and spending "buckets" and SoFi Bank's "Vaults;" these features can help you visualize and prioritize every dollar of your monthly paychecks. And you can keep using your credit cards along the way.

3. Can't pay your bill? Credit card companies will work with you

If you can't make your credit card payments, it's time to ask for help. Start by calling the customer service number on the back of your card and tell the company you're having trouble making payments and you need relief. Some credit card companies will work out a payment plan or lower your interest rate -- or both.

4. Consumer credit counseling: Get help with credit card debt

Another way to get help with credit card debt is to contact a credit counseling agency. These are nonprofit organizations that work with credit card companies to restructure your credit card debt with a lower monthly payment that fits your budget. Find a counselor near you with the National Foundation for Credit Counseling.

5. You can get rid of credit card debt by declaring bankruptcy

No one is eager to take this step, and it should be a last resort, but declaring bankruptcy can help you get rid of credit card debt. There are some significant downsides to your credit score and credit history, but over time you can rebuild your credit after bankruptcy.

Bottom line

If you're feeling overburdened by credit card debt, don't despair -- there is help available for you. Try contacting your credit card company first, and consider getting credit counseling if you need another level of help.