Interest rates on credit cards can be very high, much higher than bank lending rates. Store cards are often worst since they need to reclaim the discount they gave you when making your first purchase and encourage you to shop more often and rack up your balance on the card.

So it makes sense to avoid these high interest cards and find the cheapest credit card. Interest rates and deals are forever changing so what do we mean by the cheapest credit card. Generally, this will be one with the lowest APR (Annual Percentage Rate). But also take into account annual fees. These fees will eat away at your ability to repay your debt.

So if you have a high balance on your card then the annual fee becomes less significant compared to the lowest interest rate. But if you have a small balance to carry over from month to month then the annual fee will be something that you will want to avoid.

Cash advances are another hidden cost to look out for. High interest is often applied to the remaining balance due to a cash advance since the lender tends to regard this as a risky loan, often needed by someone with money troubles and debt spiraling out of control.