If youcarry a balanceon your credit card, you’re paying interest charges.

First things first: Figure out how toavoid being charged that interestin the first place.

Otherwise, the easiest way to reduce your credit card interest payments is surprisingly simple: just ask.

Many cardholders overlook this straightforward approach, potentially leaving money on the table.

Start by reviewing yourcredit scoreand payment history, as these factors significantly influence your negotiating power.

Next, compare yourcurrent interest rateto what’s available in themarket for similar credit profiles.

This research will give you a realistic idea of what you might qualify for.

Finally, calculate how much you could potentially save with a lower rate.

This figure will not only motivate you but also provide a concrete goal for your negotiations.

Prepare before calling

Preparation is key to any successful negotiation.

Begin by gathering information on competitor offers, especially those you’ve recently received in the mail or online.

These can serve as leverage during your conversation.

Ask to speak with a representative specifically about lowering your interest rate.

Remember to be polite but firm in your request.

Your demeanor can significantly impact the outcome of the conversation.

Mention any better offers you’ve received from competitors, using them as a point of comparison.

Be specific about the rate you’re seeking, based on your research of current market offers.

Remember, the representative may not agree to your first request, so be prepared to negotiate.

Ask to speak with a supervisor who may have more authority to adjust rates.

Inquire about temporary promotional rates that could provide short-term relief.

Depending on your circumstances, that key in of decrease could save you $500 or more in interest.

Let’s say a cardholder has $5,000 credit card balance and pays $250 per month.

A 6.3-percentage point reduction from 23.84% to 17.54% saves $478 and two months worth of payments.

That adds up to $1,436 over 26 months (versus $958 over 24 months).

A 6.3-percentage-point reduction from 27.00% to 20.70% saves $532 and two months worth of payments.

That adds up to $1,717 over 26 months (versus $1,185 over 24 months).