The main reason that credit cards try to lure you in with welcome bonuses, rewards, and travel perks is to improve your chances of earning interest on your credit card. Credit card interest, also known as APR, or annual percentage, can easily add up to more than late fees and annual fees combined. As a cardholder, it’s in your best interest to avoid credit card interest rates, especially as interest rates rise as the Fed battles inflation throughout the year.

Credit card issuers charge interest on any balance that is not paid in full at the end of your statement cycle. The average credit card interest rate is around $19, according to survey data collected by CNET Bankrate’s partner website.

Though some credit cards feature lower interest rates and others come with a promotional 0% APR period, you can avoid racking up interest charges with any credit card as long as you don’t carry a balance. Here’s a breakdown of how credit card interest works — and how you can avoid it.

How credit card interest works

Interest will be charged on any remaining balance on your credit card after the payment due date. You can multiply the balance by the APR to see how much interest you will owe on that balance over the course of a year.

Let’s say you made a $3,000 emergency purchase on your credit card. To avoid late fees, which can leave a trail on your credit score, you make the required minimum payment. Let’s say – as is the case with many credit cards – the minimum payment is 2% of your balance and the average APR is 18.68%.

In the chart below, we see how making only the minimum payment reduces your chances of reducing your balance over time. By making only the minimum payment each month, the accrued interest on the remaining balance consumes about 75% of your monthly payment.

If you can avoid late fees and credit card interest entirely, the perks and benefits of a credit card are all gravy. Here are the three best ways to avoid credit card interest altogether.

1. Make your credit card payments in full

Every credit card has a “grace period” that lasts for approximately four weeks before interest is applied to your statement balance. Even though you just need to pay the minimum amount due on your credit card account by the due date, your balance and interest fees will be added to the bill you receive the following month. You won’t be assessed interest if you always pay your statement in whole and on time.

A reserve for emergencies might assist you to avoid unintentionally missing, paying late, or leaving payments unfinished. If you have a tendency to forget things, another option is to set up credit card autopay, which will automatically draught your bank account on the due date.

2. Use a 0% APR card

To entice applicants, several credit cards provide promotional 0% APR periods. As long as you make your minimum payments on time, you can make purchases after your card has been accepted for up to 21 months without any interest being charged. This can offer you some extra time to pay off a big purchase, cover an unexpected expense, or move a balance from one credit card to another with a higher interest rate.

The secret to using these cards is to pay off your entire balance before the 0% introductory APR incentive expires; else, interest fees will apply.

3. Use a debit card or cash

If you are used to overspending and want to save yourself from the temptation, you can always use a debit card or cash to transact. Prepaid debit cards prevent you from spending more than the amount in your account. Many banks will issue a debit card with your checking account.

Additionally, there are some secure credit cards that don’t require a credit check, require a security deposit to act as a credit limit and help you build credit. They are similar to debit cards with minor modifications and can be a good intermediary solution. If you miss a payment, some secured credit cards will take the balance directly from your secured deposit, keeping you from overspending.

Some examples include the Chime Credit Builder Visa® credit card and the SuperCash™ card.

Ultimately, whichever path is best for you, it’s increasingly important to avoid credit card interest rates. Make a plan to get more out of your money.