How to Pay Less Interest on Every Debt You Owe — Credit Cards, Student Loans, Mortgage and More (2026) Interest is one of the largest expenses hiding in most household budgets. This guide breaks down the most practical strategies to reduce what you pay on every major debt type, using real rates as of May 2026. The goal is not to tell you debt is bad. It is to show you exactly how to pay less of it. Current Rates at a Glance (May 2026): Credit cards are averaging 19.57% APR. The 30-year fixed mortgage averages 6.37%. Federal undergraduate student loans sit at 6.39%. New car auto loans average around 7%. If you carry balances at any of these rates, the strategies below can save you thousands over the life of your debt. Why Reducing Interest Beats Most Investments Paying off a credit card charging 20% interest is the mathematical equivalent of earning a guaranteed, tax-free 20% return. No index fund reliably delivers that. Before you optimize your investment portfolio, opti...