WASHINGTON (7News) – Americans are grappling with significant credit card debt – the average balance is $6,730, according to Experian – but experts say strategic changes in payment habits and card selection can significantly reduce interest paid and accelerate debt payoff.
One effective tactic is to make two payments each month instead of one. “If you’re carrying a credit card balance, if you make two payments each month, as opposed to one, that first payment actually goes to the principal and will reduce the interest for that monthly fee,” explains David Brindley, Deputy editor of AARP Bulletin and AARP The Magazine.
Beyond payment frequency, shifting to cash for purchases can also yield savings. Brindley notes, “Studies have shown that people who pay with cash tend to spend less money. A lot of small businesses are passing on the higher credit card fees that they get to their customers. So if you pay cash, you won’t have to pay those extra fees.”
Choosing the right credit card is also crucial. Consumers should evaluate their spending habits and prioritize features like cash back, travel rewards, or a low interest rate. Resources like The Points Guy and Card Rates offer comparison tools to help identify the best fit.