Credit cards give you the luxury of spending without the need to carry cash or worrying about having money in the bank. However, every luxury comes with a price, and here price is the interest rate on the balance or debt that you carry on your credit card. There could be many reasons for why you carry that debt like your spending behavior, medical emergencies, etc. But if handled carelessly, credit cards can give you more pain than relief.

There are a variety of different ways to cut credit card interest rates. Here we will look at how you can do that.

1. Understand the Reasons
   Begin from analyzing your spending behavior and the debt amount. Also, check for your credit card terms, including interest rates, due date, and grace period. Then take immediate steps to prevent yourself from being dragged into debt in the future.
2. Pay Your Debt on Time
   Though setting up an emergency fund could be a better idea to pay off your debt, developing the habit of paying your debt in full and on time is the best approach.
3. Negotiate with Your Credit Card Issuer
   Do not hesitate to communicate with your credit card issuer and negotiate on lowering your interest rate. If they do not agree to your terms, tell them about your plans to cancel your card. Do your research on competitive credit card offers; you can use it as an instrument when negotiating with your credit card issuer.
4. Buy a Balance Transfer Credit Card
   Another way to do away with interest rates is by buying a balance transfer credit card with a low or 0% introductory APR for 12 to 18 months. A balance transfer credit card can consolidate your credit card debt and is good for your credit score. However, it charges a fee of 3% to 5% every time you transfer a balance. To qualify for a balance transfer credit card, you need to have a good credit score.
5. Plan Your Budget If somehow you fail to pay off your debt or keep the interest rate lower, create a budget. This will make it easier for you to cut back on your spending. Also, avoid making any new purchases on your credit card until you pay off the debt.
6. Consider a Low-Interest Credit Card
   If you are one of those who always carry a balance on a credit card, then applying for a low-interest credit card for future spending could be a wise step. If you have a good credit score, then you can choose a low-interest or 0% credit card depending on your needs.

Conclusion

It is not unusual for someone who owns a credit card to get caught up in the credit card debt. But with a few sensible steps, you will be able to cut or lower credit card interest. You can try negotiating interest rates with your card issuer or transfer your outstanding balances to a zero-interest credit card or plan a budget. However, the best way to avoid incurring more debt on your credit card is to pay your balance in full every month. Once you do any of these, the ghost of credit card debt will not haunt you anymore.