Can consumers avoid paying interest on credit cards?

Question

Responses

Yes, if they pay the balance off immediately.

No, using credit cards even once generates fees.

Yes, there are many cards that have no interest or fees.
No, credit cards should not be used because of the fees that result.

Answer 1

The most accurate response is:

Yes, if they pay the balance off immediately.

Consumers can avoid paying interest on credit cards by paying their full statement balance by the due date each month. This way, they can take advantage of the grace period typically offered by credit cards, which allows for interest-free borrowing on new purchases. However, if the balance is not paid in full, interest charges may accrue on the remaining balance.