Get smart on credit card debt
How to tackle credit
So who would you guess has the most credit card debt in
Australia? People who earn less than $35,000 or those who earn more
than $70,000 per year?
You may be surprised to know that it is people who earn more
than $70,000 per year, those who are managers and degree qualified
who are most likely to carry $5,000 or more in credit card debt,
compared to the general population.
If these people make only the minimum repayment on a $5,000
credit card debt, it will take them 30 years to pay off the debt.
That's the length of your average home loan!
Read our media release to find out more about
the research behind these facts.
Whatever you owe on your credit card you need a plan to pay it
off. If you don't you'll be paying thousands of dollars in
interest. The interest rate on credit cards is often higher than it
is on other types of credit like loans.
Before you even start sorting out your credit card debt you
should look at doing a budget to see how much money you can spare
each month to put towards your credit card debts. Use our budget
Top tips to tackle credit card debt
- Check if your extra repayments will do the
trick - After you do a budget take the figure you think
you can spare to pay off your credit cards and put it into our credit card
calculator. Then you'll see how much quicker you'll pay off
your card and how much money you'll save. Remember, even a small
amount more will make a difference.
- Follow through and deliver - Closely check
your credit card statement every time it comes in and commit this
money to it. You might need to set up a direct debit to make this happen.
Following through with the promise you have made to yourself to pay
off your card is critical.
- Get a better deal - If you are paying high
interest on your credit card you should shop around for a better
deal or consider a balance transfer. Just make sure that the
interest you'll be paying after the honeymoon period is not higher
than the interest you are currently paying or you might be back to
square one. Find out more about honeymoon rates and balance
- Build your wealth with your savings - Work out
how you will use the money saved in credit card interest to invest
in building your wealth this year. Find out how to increase your
For more tips on credit card debt find out how to pay off
multiple credit cards or check out our credit card
Like any kind of debt, you need discipline and a
plan to get credit card debt under control.
Last updated: 29 Jul 2016