3 Seriously Real Ways to Stop Paying So Much Interest
1. Zero in on high rates. “Some people pay off the cards with the smallest balance because it feels good,” says Jamila Souffrant, host of the Journey to Launch personal-finance podcast. “But you’ll save more if you focus on cards with the highest interest rates.”
2. Score a better deal. Have a history of making payments on time? Call your credit-card company and ask the rep to drop your rate. It works! A Creditcards.com poll found that seven out of ten cardholders who ask for a lower rate get one. No luck at first? Ask for a supervisor who has more leeway to make the change, says Laura Beattie, a blogger at Savvyfamilyfinance.com.
3. Move your debt. See if you qualify for a “balance transfer” card, which is interest-free if paid off in a certain time frame. Get details in the box below.