Answer:

The best strategy to avoid paying interest on your credit cards involves a two-pronged approach involving responsible credit card use and maximizing your grace period. The key tactics entail; one paying your balance in full each month. This is the golden rule. Credit cards offer an interest-free grace period, typically lasting at least 21 days between your statement closing date and the due date. By paying your entire balance before the due date, you avoid any interest charges on your purchases during that billing cycle. Second, track your spending and create a budget: This helps you stay mindful of your spending and avoid overextending yourself. Budgeting apps can be helpful tools for managing your finances. Third, consider strategic purchases: If you must carry a balance for a larger purchase, look for cards with 0% introductory APR offers on purchases. This allows you to make the purchase without accruing interest for a set period (usually 12-18 months). However, be sure to pay off the balance entirely before the introductory period ends to avoid high interest rates that kick in afterward. The fourth strategy involves making multiple payments per month. Since interest is often calculated based on your average daily balance, making multiple payments throughout the month can lower that average and potentially reduce your interest charges. Finally, beware of cash advances: Unlike purchases, cash advances typically don’t come with a grace period and start accruing interest immediately. It’s best to avoid cash advances unless absolutely necessary. By following these strategies, you can leverage your credit cards for their benefits (rewards programs, building credit score) without getting stuck paying interest on your purchases. Remember, credit card debt can snowball quickly due to high interest rates. Responsible credit card use is key!