3 Tricks You Can Employ to Avoid Paying Credit Card Interest

As of the first quarter of 2023, U.S. credit card borrowers owed a whopping $917 billion, according to TransUnion. And chances are, at least some of those balances are still accruing interest to this day.

That's a problem, because the more money you're forced to spend on credit card interest, the less money you'll have to put toward other expenses or goals, whether it's saving up to retire comfortably or to buy a home.

If your goal is to reap the benefits of using credit cards without having to owe money in interest, you may want to take these important steps. They could help you avoid credit card debt and the stress that can easily come with it.

1. Check your balances every week

Some credit card users don't check their balances until their statements pop up in their inboxes along with a payment due date. But if you wait until you've already charged up a world of expenses on your credit cards, you might end up in a situation where your balances are more than what you can afford to pay off in one fell swoop. The result? Interest charges.

A better bet may be to start checking your credit card balances on a weekly basis. That way, if you start to see that your balances are getting too high, you can take steps to put off certain purchases until your next billing cycle.

2. Follow a tight budget

The stricter you are about budgeting, the less likely you might be to end up with a credit card bill you can't afford to pay outright. Set up a budget that accounts for your monthly expenses, and check in periodically to make sure you're following it.

An even easier bet could be to sign up for a budgeting app that links to your checking and credit card accounts. That way, your purchases will be tracked automatically for you.

3. Pad your savings account

It's important to have money in a savings account for unplanned expenses, like home and car repairs. You don't want to make a habit of dipping into your savings every time a credit card bill of yours comes in higher than expected. But if you pad your savings so there's extra money to access, you might manage to avoid credit card interest during a month when you have no choice but to charge extra expenses -- such as if your car breaks down or you wind up having to cover surprise medical bills.

Many credit card companies reward consumers generously with perks like cash back on their purchases. But they don't do that out of the goodness of their hearts. They do it with the hope that the people who use their credit cards won't be able to pay off their balances in full and will end up forking over interest. You can avoid that scenario, though, by checking your balances every week, sticking to a budget, and making sure you have extra cash to tap in a pinch.