Saving money on interest can really be a substantial savings vehicle. There are some tips that you can use to reduce how much you pay in interest that can add up over time. Using some simple tactics can reduce the amount of interest that you pay every month and each year.
Tip # 1 Pay Your Card Balance Every Month
Carrying a balance can get costly when it comes to paying on interest. Paying off your balance every month will reduce the amount of interest you pay overall and has the added benefit of boosting up your credit and your available balance.
Tip # 2 Yearly Fees Are Normal
Trying to navigate to a card that does not charge you a yearly fee may seem like a good idea but what you may find is that what you save in a yearly fee really just amps up the amount of interest that you are charged on the card. Weigh your options carefully. Yearly fees are normal and it may be cheaper to just go with the card with the fees if it offers a lower interest rate.
Tip # 3 Watch Out for Hidden Monthly Fees
Pay attention to your monthly statement and be sure to look to for any monthly fees that you may be being charged. Those fees can stack up rather quickly and you want to be aware of them to ensure that you are not paying for fees that you can avoid.
Tip # 4 Take Advantage of Cash Back and Reward Cards
Cash Back and Reward Cards can prove to be valuable tools in keeping costs down. If you earn cash back that can easily balance out your interest charges. Unfortunately, in many cases the cash back and reward cards actually charge a higher interest rate so you should really take a closer look to ensure that you are on the winning end.
Tip # 5 Calling You Card Company for a Lower Rate
Most of the time you have a little room for negotiation with your credit card company. Many people do not realize that sometimes you can lower your interest rate simply by asking for a lower rate! Of course you have to be a customer in good standing that the credit card company considers a valuable customer to really have some leverage. You have nothing to lose by calling and asking!
Following these tips can help you to save money on interest so that you can pay down more of the principal!