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Now is one of the most expensive times to have credit card debt as credit card interest rates are at record highs. Average credit card APR rates reached 17.13%, according to the Federal Reserve. Here are some of the ways you can reduce your total interest charges.
Use 0% Balance Transfer Offers
Moving your current card balance to a balance transfer credit card lets you enjoy a 0% introductory APR for at least 12 months.
While you pay a one-time transfer fee that’s usually 3%, you can save a small fortune and potentially get out of debt in the process.
Some of the best balance transfer promotions offer 0% credit card interest rates for 15 to 21 months.
Learn more: Balance Transfer Credit Cards
Look for an Introductory 0% Purchase APR
If you’re making a big purchase, having to pay interest or enroll in a buy now pay later plan are not your only options.
You might be able to open a new credit card with a 0% introductory purchase APR. You can also earn a signup bonus to defray some of the purchase amounts.
As long as you make the purchase during the promotion window and make the minimum monthly payment, you can continue to enjoy the interest-free period.
You will most likely need to get a cash rewards credit card to enjoy this promotion.
Ask for an Interest Rate Reduction
If you’re close to paying off your balance, you can try calling your bank and asking for a temporary rate reduction.
The bank still makes some revenue from the interest charges.
Credit Card Consolidation
If you have good credit and need several years to pay off your balance, a personal loan can provide a lower interest rate. Most loans offer a 3-year or 5-year repayment period.
You might also consider using a service like Tally to track your current balance on multiple credit cards and make a personalized debt payoff plan so you pay the least amount of credit card interest.
While credit card interest rates are currently at historic highs, there are still several ways to avoid paying these charges. Then, you can focus on maximizing your purchases with the best rewards credit cards.
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Chase Sapphire Preferred® Card
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.
- Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered. Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.
Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.