Home Loans Australia :: Articles
SHARE

Share this article!

Managing Credit Card Debt

Managing Credit Card Debt

If your credit card debt is starting to get out of control - or you simply want to know how to avoid potential credit card pitfalls, you are not alone.
Managing credit cards is a problem faced by many who are now drowning in an ocean of debt.
Here are some simple strategies that may be of help.

Consequences

Some people think that credit cards are free money to be used and never think of the consequences of overspending.
Now people around the country are faced with debt management to get out of debt and enjoy life again.
Learning how to consolidate debit is important and learning how to stay out of debt is even more important.

Put them away

To keep your debt from spiraling even more out of control, you should consider putting your credit cards away for a while. Try to use cash to make purchases and make sure to learn how to channel your spending habits.
Debt Stressed?
If you're struggling to pay your debts and covering living expenses, we're here to help. Through our national panel of Debt Management specialists, we can help customers with $10k or more in debt by consolidating your existing loans, stopping Debt collectors from contacting you and re-negotiating repayments on your terms!
You’ll want to exercise restraint in spending and not buy everything you see. You should work on a monthly budget to help you control spending.
Just because something is on sale now, doesn’t mean you need to buy it now.

Keep them under control

Don’t ever use more than 70% of your credit line at one time, that is a basic rule to be followed.
Keep your spending under control until your income goes up or you get out of debt. You don’t want to make things worse and harder on you and your family by putting yourself into even more debt.

Consolidate and save

You may also want to consider learning how to consolidate debt. This means you move the balance of all of your credit cards onto one card.
This card should have a zero interest as a starting benefit or have a lower interest rate than your other cards.
Make sure you read all the fine print before you do anything, because you don’t want to miss an important fact and end up paying more money. You can compare credit card offers here.
You can also call your credit card company and try to negotiate with them and see if they can lower the interest rate on your current card.
Another alternative is to consolidate your credit card debt with a personal loan. This should mean a single monthly repayment at a lower interest rate ... but you should also take steps to avoid accumulating new credit card debt in the future.

Pay them off

Try to pay off as much of your debt as you can each month. This will help you save money by lowering the interest rates you are paying each month. You also may want to consider closing out some of your credit card accounts.
Make sure you aren’t applying for more credit cards just because you have no more credit available to you on your current card. You will find yourself in even more trouble if you do that. You should also be warned that you may not even get the credit card approved if you try to do this since you are wrecking your credit rating already. Try to stay away from any kind of new loans at this time, until you are out of debt.
Remember that most things you want to buy can be bought later on and you don’t need them now. Having security and money in the bank will protect you and your family.

Published:Sunday, 1st Aug 2021
Author: 8

Share this article:

Time for a 2nd opinion on your Home & Contents Insurance?
We now offer a nation-wide panel of specialist Household Insurance brokers ready to help you lock down the best value home and contents insurance solution - tailored to your individual needs and guaranteed to save you money!
Free Superannuation Advice
If you are thinking about rolling over or consolidating your super accounts, need investment advice, help setting up or administering a self-managed fund, we can help save you both time and money. Our national panel of Superannuation Specialists are standing by, ready for your questions!

Home Loans Articles

Unlocking the Hidden Value of Your Mortgage Offset Account Unlocking the Hidden Value of Your Mortgage Offset Account
A mortgage offset account is a financial product that allows homeowners to use their savings to reduce the interest charged on their mortgage. It is a transaction account linked to your mortgage, and the balance in this account is offset against your outstanding mortgage balance when calculating interest charges. - read more
Planning for a Better Future: Exploring Refinancing Options for Aussie Homeowners Planning for a Better Future: Exploring Refinancing Options for Aussie Homeowners
As a homeowner in Australia, it is essential to stay informed about the current mortgage interest rate and inflation situation. This knowledge is crucial for effective financial planning and making informed decisions regarding your home loan. Understanding the impact of rising interest rates on Australian homeowners is particularly important. - read more
Top 10 Mistakes First-Time Home Buyers in Australia Should Avoid Top 10 Mistakes First-Time Home Buyers in Australia Should Avoid
Embarking on the journey to buy your first home is both an exciting and significant milestone in Australia. However, the process is also complex, and the learning curve can be steep for first-time home buyers. Being thoroughly informed is key to navigating the housing market's intricacies and can help elude the common missteps that befall many novices. - read more
First-Home Finders: How to Choose a Mortgage Broker Who Works for You First-Home Finders: How to Choose a Mortgage Broker Who Works for You
Embarking on the journey to homeownership can feel like navigating uncharted waters, with mortgage brokers often serving as the compass guiding you through the complexities of home financing. For many first-time home buyers, understanding the role of a mortgage broker can provide peace of mind and valuable support throughout the home-buying process. - read more
Interest Rates and Investment Properties: What Aussie Investors Need to Know Interest Rates and Investment Properties: What Aussie Investors Need to Know
For potential and seasoned investors alike, the Australian property landscape offers a plethora of opportunities. Investment properties have long been a favored asset class in Australia due to the potential for capital growth and rental yield. However, diving into the property market without a solid understanding of the financial mechanics, specifically interest rates, can be akin to sailing without a compass. - read more


Need Help Finding a Home Loan?
Get your free home loan eligibility assessment and compare offers tailored specifically to your circumstances.
Loan Amount:
Postcode:
All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Bridging Finance:
A short-term loan that covers a financial shortfall during time between the purchase of a new property and the sale of an old property.