‘If Americans want lower interest rates, they’re going to have to do it themselves,’ analyst says. Here’s how

With high-interest rates persisting due to the Federal Reserve’s decision not to lower them yet, credit card users face ongoing sky-high interest charges.

Instead of relying on a rate cut, experts recommend proactive measures to reduce credit card interest rates for those carrying a balance.

One option is to contact your card issuer and request a lower rate.

Another strategy is to switch to a zero-interest balance transfer card, which allows you to transfer your existing credit card balance to a new card with a period of no interest charges, typically ranging from 15 to 21 months.

Consolidating and paying off high-interest credit cards with a personal loan is also a viable option.

Currently, personal loan interest rates hover around 12%, lower than the average credit card rate.

However, qualifying for a zero-percent balance transfer card or a personal loan requires good credit.

The interest rate on credit cards is directly linked to the Federal Reserve’s benchmark rate.

After a recent increase in the Fed’s benchmark rate, average credit card rates have risen to almost 21%, reaching near their highest level.

Experts advise using credit wisely, especially when it comes to high-interest products like credit cards.

They recommend only using these cards when confident in the ability to pay off the balance quickly, as interest can accumulate rapidly at higher rates.

Despite the high interest rate environment, credit card issuers continue to offer generous terms on balance transfer cards, which remains a powerful tool in the battle against credit card debt.

It’s also an ideal time for consumers to explore lower-interest options to consolidate their debts and reduce monthly payments.