For those who are used to being in debt, paying interest may seem unavoidable. Whether you are currently in credit card debt or just want to learn to use your credit cards more responsibly, this article will help you. In this article, I describe three smart ways you can avoid paying credit card interest. If you follow these methods, you could never pay credit card interest again!
Why You Should Never Pay Credit Card Interest
Imagine paying $113.66 for a $100 pair of shoes. That’s essentially what you’re doing when you pay credit card interest. The average credit card interest rate for interest paying accounts in 2015 was 13.66%.
When you pay interest on your credit card balance, you’re paying the credit card company for the convenience of paying for your purchases over time. That’s a convenience most of us would benefit from learning to live without.
It’s a good idea to get into the habit of only using your credit card for purchases you can afford (at least by the grace period – more on that below). This way, you can use your hard-earned money for more useful things rather than giving it to a credit card company for interest.
Know Your Credit Card’s Grace Period
First off – what is a grace period? A grace period is a time frame in which you are allowed to pay your bill without any interest. It’s the time from the last day of your billing cycle to the date your bill for that cycle is due.