Want to Pay Less Credit Card Interest? Here's How

Credit card interest can be costly. Here's how to minimize it.

Some people accrue balances on their credit cards because they lose track of their spending or fall victim to too many impulse purchases (which can happen to the best of us). Other times, credit card balances accumulate when unplanned bills pop up out of the blue (thanks, aging car).

The problem with carrying a credit card balance, though, is racking up interest charges that could be extremely costly. But here's how you can minimize the amount of interest you pay on your cards.

1. Pay off your balances as quickly as possible

Sometimes, carrying a credit card balance is unavoidable. But if you land in that boat, the sooner you pay off the amount you owe, the less interest you'll rack up.

If you're sitting on a sizable balance right now, take a look at your budget and identify expenses you can cut back on for a bit to free up cash. At the same time, consider getting a temporary side hustle and using your earnings from it to whittle down your balance. You can ditch that second gig once you're debt free if it's too stressful or time-consuming. But plugging away at a side job for a month or two could spare you a world of credit card interest by making it possible to pay off your debt sooner.

2. Negotiate your existing interest rates with your credit card issuers

If you read your credit card agreements carefully, you'll see that your card issuers are entitled to charge you a certain amount of interest on carried balances. But that doesn't mean you can't negotiate with them.

If you've been a cardholder in good standing for quite some time, a credit card company might agree to lower the interest rate on your debt. Why? It's simple. Credit card companies make money by collecting interest (and other fees). Your credit card issuer might prefer to collect some interest from you than none at all, which might happen if you decide to consolidate your debt and pay it off another way, such as taking out a personal loan.

3. Do a balance transfer

If you owe money on your credit cards but have decent credit, you might qualify for a balance transfer. And if you can find one with a 0% introductory APR, you'll have a real opportunity to save money on interest.

Of course, introductory APRs only last so long. The offer you qualify for may only give you a year of 0% interest. But even if you only get a one-year reprieve, that's still better than nothing. And if you're able to pay down your debt during that time, your savings might be huge.

The option to pay off a credit card balance over time is no doubt convenient. The drawback, however, is racking up interest charges that could amount to quite a sizable sum. These tips could make it possible to limit the amount of credit card interest you accrue -- and throw less of your hard-earned money away.