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How to reduce interest rates on credit cards

6 ways to lower your credit card interest payment

Updated on: February 26, 2013

Here are some simple tips that can save you a great deal of money and reduce financial stress.

R ahul Khanna's mother was hospitalised suddenly and she did not have medical insurance. To cover the expenses in this difficult time, Rahul used his credit card to make a payment to the tune Rs 1.75 lakh. When he had to pay the credit card bill, he was in a fix as he did not have enough cash to pay it off. So he read the top right hand corner of the bill where it was written 'minimum amount due' and he paid that amount.

As months passed Rahul noticed that his credit card bill was growing each month and soon got out of control. It was not his spending that had inflated the bill but the interest rate on the original bill.

The truth is that

credit card interest rates are extremely high i.e. between 36 to 42 per cent per annum. However there are some simple ways to reduce your interest payments.

Here are the six easy ways how you can lower your interest rates on your credit card.

The author is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India's first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.

Updated on: February 26, 2013

1. Aim at paying the maximum possible amount each month

I gnore the 'minimum balance due' and try your best to pay the maximum amount you can. The longer the period of payment, the more the interest amount which will add to your financial burden.

Category: Credit

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