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Rising credit card interest is quietly draining wallets. But a few smart moves, often overlooked, could ease the pressure and put more money back in your hands
To request a lower interest rate, contact the customer service number on the back of your credit card.
Using a credit card is convenient, but the interest can be costly. In the US, the average credit card interest rate is around 22%. For individuals with a poor credit score or those who have missed payments, this rate can rise to 30%.
According to the Federal Reserve, although card defaults stabilised slightly last year, total credit card debt has grown rapidly. In the third quarter, it reached $1.23 trillion, an increase of approximately 5.75% compared with the previous year.
Average Debt And Interest Costs
How much does the average person owe, and what is the interest burden? Credit bureau TransUnion reports that the average individual now carries over $6,500 in credit card debt.
Using Bankrate’s calculator, someone aiming to pay off this sum within a year would need to make monthly payments of about $608. Over the course of that year, they would pay around $800 in interest alone, meaning the interest cost exceeds the principal debt.
Can You Reduce Your Credit Card Interest Rate?
Experts advise that it is always worth attempting to lower your interest rate. Bruce McClary, spokesperson for the National Foundation for Credit Counselling, says that if you pay on time and have a credit score of 740 or higher, you can request a lower interest rate from your card issuer.
Even a modest reduction of 1 to 3% can result in significant savings over time.
How To Approach Your Card Company
To request a lower interest rate, contact the customer service number on the back of your card. It is important to be polite and confident during the conversation.
If you have ever missed a payment, be prepared to clearly explain the circumstances.
If your credit score has recently improved, you can mention that you have reviewed your credit report and would like your interest rate reconsidered based on your improved score.
If The Interest Rate Remains High
If your card company refuses to lower the rate, do not end the discussion there. You can explore alternatives such as a balance transfer, moving your debt to another card from the same issuer with a lower interest rate.
Card companies invest heavily in acquiring new customers and are generally reluctant to lose existing customers with strong payment histories.
Alternative Strategies To Reduce Interest
Adjusting your payment schedule can also help reduce interest costs. Experts recommend paying twice a month instead of once. For instance, if you are paid every two weeks, aligning your payments accordingly can accelerate debt reduction and lower the total interest owed.
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February 05, 2026, 08:56 IST
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