Credit card interest is the bane of many a credit card holder. Perhaps because nobody likes seeing double digit interest rates – least of all on depreciating or, even worse, disappearing, commodity-type purchases. Now, in real terms, you have one of two choices in this matter: you can either contemplate the situation into perpetuity, or you can remind yourself that you are not married to your current credit card and that you can do something about it. And, doing something about it means engaging with the system and making it work for you instead.

The very first step is to develop a good credit profile. It includes being diligent at paying your debts as and when these fall due, and not entering into too many credit agreements at once. Your perceived credit risk will influence the credit card product, and by association the interest rates you will be subject to.

The second step is to become an informed consumer. This means knowing what is available. In the South African credit card industry there are more than one hundred different credit card products – some of them better and some of them worse. Out of necessity, you will need to review many of these and with the banking sites more than just a little cumbersome to navigate, you may want to use a credit card site that allows card comparisons, to simplify your shopping.

With the goal of easing the sting of the interest thorn in your side, narrow down your evaluation to credit cards that have the following characteristics:

• Low interest on purchases and cash advances
• Zero or low interest introductory offers
• Low interest balance transfers
• Grace periods in excess of 30 days

This is a must have when you intend cutting down your interest burden. Low interest credit cards fall in the prime plus 2.5% and prime plus 5% range. Your income is a major factor where low interest credit cards are concerned. If you earn R 9,999 or less per month, the selection is fairly limited. You can evaluate Virgin, Clicks, Edgars, Jet, Woolworths and Kulula if you fall in this income bracket. If you earn between R 10,000 and R 24,999 per month, the selection shows an improvement with Barclay Card, Absa and Vodacom stepping to the fray. It is when your income starts exceeding R 24,999 that the selection becomes seemingly limitless and the interest rates, super low. If you are one of the higher earners, you could qualify for a super low interest rate credit card that sports an interest rate of between prime minus 1% and prime plus 2.4%.

If a low interest credit card comes with a zero or low interest introductory offer, so much the better. There are banks that offer a reduced interest rate for a specific period to consumers who open credit card accounts with them. They tend not to publish these introductory offers in their disclosure documents, so you will have to specifically ask each the issuers whether they have low interest introductory offers on their low interest cards, or not. The exception here is Virgin Money. They not only offer a 3 month, 0% introductory period, but they are also not shy to publish it.

In an attempt to lure credit card holders away from their competition, quite a number if South African credit card issuers offer low interest balance transfers. In effect, the outstanding balance on your current credit card is switched to your new issuer’s low interest credit card. Then, for a period of between three and six months, you will enjoy a reduced interest rate on the balance you transferred. You really stand to gain if you manage to settle this balance before the balance transfer period expires.

This is quite important. If the low interest credit card does not come with a grace period, the issuer will automatically charge interest from the moment you swipe your card. If you have a grace period of thirty days or more, you have an opportunity to settle the balance on your card so as to avoid paying interest. If you do not settle the balance in full, interest will be charged from the date of each of the transactions you made.

Credit cards need not be as expensive a debt as these turn out to be for many credit card holders. Being well informed, credit savvy and a little mercenary when called for, may well change your credit card burden into a credit card pleasure.