The best and simplest way to avoid high interest rates on your credit cards is to pay off your balance every month. But for those of us who are already inundated with debt, doing so may seem next to impossible. So here are a few tips on how to avoid high interest rates, even if you have a balance:

1. Pay your credit bill on time. This tip may seem obvious; but many credit card consumers fail to make timely payments and find themselves hit with a higher interest rate and/or fees. Paying your credit card on time will give you the leverage you need to get a card with a lower rate in the future.
2. If you have three or four cards, it may be wise to close the accounts with the highest rates. But be forewarned, closing a credit card with a long account history may negatively impact your credit score. For cards with a long history simply pay off the balance, refrain from using the credit card or pay off the balance every month to avoid being hit with the high interest charges.
3. Make more than the minimum payment on your bill. By paying more of your credit line’s principal, you will pay off the card quicker and minimize your exposure to high interest charges.

Shop around for the best rate. When opening new credit accounts make sure that the interest rate is as near prime as possible. Don’t make the mistake of signing up for the first credit card offer that lands in your mailbox. Take the time to consider all of your options by seeking out the best interest rates on your own. Oftentimes, card offers received via mail don’t offer the best interest rates.

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