Take advantage of interest rates when paying off debt

Consumers with bad credit history know that interest rates play a large role in making their debt manageable or unwieldy. Many debtors find that what they owe on their credit cards consists of a large portion of interest that they have allowed to accrue on their original loan. Since interest rates often differ on various cards, though, there are ways to make debt easier to repay by prioritizing and transferring balances.

Consumers may want to check if they can transfer the balance on a high-interest-rate card to one bearing a lower interest rate, according to LowCards.com. If the balance transfer fee is not too high and if the consumer can commit to paying as much above the minimum monthly payment as he can, the transfer may be a smart financial decision.

When it is not possible or not advantageous to transfer a balance, consumers may want to prioritize the debt that is carried on the higher-interest-rate card. Debtors can make the minimum payment on all other cards while working to pay off the higher-interest balance in full. Once this balance is paid off, consumers can do the same for the balance carrying the second-highest interest rate. Taking these steps can not only allow a consumer to pay off his debts faster, but may also improve a bad credit history.