Credit Card Debt Burden Forces Holders to Seek Consolidation and Lower Interest Rates

The U.S. credit card debt has reached $1.26 trillion in the second quarter of this year, according to a recent New York Federal Reserve study.

Ernesto Alvarez, 55, paid off about $70,000 of his credit card debt in just over a year with the help of a non-profit program that consolidated his debt into a single payment plan.

The plan helped him negotiate lower interest rates and pay off debt on 12 to 15 different credit cards. Alvarez said he felt 'a huge weight off my shoulders' after repaying his debt last year, adding that it was a 'feeling of accomplishment, elation.'

Analysts who spoke to ABC News outlined options such as credit cards that offer a months-long grace period without interest payments and consolidated bank loans with fixed interest payments at comparatively low rates.