Credit cards are handy but the interest charges can add up quickly, especially if you carry a balance. However, there's a smart way to lower these charges and keep more money in your pocket.

1. Know Your Billing Cycle:

Your credit card has a monthly billing cycle. During this time, all your purchases and any payments you make are tracked. After this cycle ends, you get a grace period (usually 21 to 25 days) where no interest is charged on new purchases if you've paid off last month's balance.

Read: Credit Card Grace Period Explained

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2. Pay Before Due:

Pay off your balance before the grace period ends to avoid interest on new purchases. Better yet, pay it off before the billing cycle ends to lower the average daily balance and reduce the finance charges.

3. Prioritize High-Interest Cards:

If you have multiple cards, pay off the ones with higher interest rates first. This is known as the Avalanche Method and it helps reduce your total interest charges.

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4. Consider Balance Transfers:

Move balances from high-interest cards to ones with lower or even 0% introductory rates. This can save you a significant amount in interest over time.