Ever notice when you carry a high credit card balance and just make the minimum payment that your bill still keeps getting higher, even though you haven't actually charged anything to it? That is because you are charged interest, which is how the credit card companies make their money. And the higher balance you carry, the more money they make from you, just through interest alone.

Often, if you find yourself in this situation, you can contact your credit card company and request a lower interest rate. There are sometimes conditions attached to this, such as you will revert back to the higher interest rate should you miss a minimum payment.

If you are paying 18% interest, even a drop down to 9% or 10% can make a siginifcant difference when you carry a high balance.

Remember, banks just won't reduce your interest rate, especially if you have a high balance or tend to be late on your payments. You will need to ask for your credit card interest rate be reduced for it to happen.