If you start preparing now, you could set yourself up to settle your debt for less than you owe next year. Mohd Izzuan/Getty Images

Right now, credit card balances are at record highs , and the interest rates these short-term borrowing tools come with aren't far off. Americans owe roughly $1.23 trillion in credit card debt, a figure that's risen sharply alongside persistent inflation and years of high borrowing costs. And, they owe that collective amount at a time when credit card interest rates are averaging around 21%, just under the highest rate on record.

As a result, credit card delinquencies and charge-offs have ticked up over the past year, especially among borrowers with lower credit scores. As more Americans seek ways to escape their high-rate debt, credit c

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