How to beat Credit Card Debt

  •  2016 is well in progress. However maybe you are still suffering from 2015’s credit card debt?  I know I am. Christmas spending crept up on me and now I am working towards paying off my credit cards.  As an accountant, I don’t have all the answers, but I am always on the lookout for good money advice. I found a great source.  ASIC MoneySmart website has some great tips and calculators to help everyday Australians get ahead financially. The website has a whole page dedicated to managing debt. Managing credit card debt can be a burden and here are some handy tips.
  • Make regular repaymentsEnsuring you make at least the minimum repayment, and more if possible each month will help reduce your debt. Here is a handy calculator to work out how making regular repayments will help to reduce your debt.
  • Consolidate your debt understand this is not always an option, but if possible consolidate as much of your debt together. This way you can manage your debt with one repayment.
  • Cut the card in half I mean actually cut the card! This tip is one from my own mother. When paying off a card that got to big, she would cut the card up to avoid using it, and then it would get replaced on the renewal date. I have done it too, it avoids temptation and if you do it with say six months before the card renewal date you have a goal to reach for.
  • Pay off the card each monthThere’s no doubt, having a credit card helps establish a credit history. Take my brother for example. Having never had a credit card in his life he found it hard to apply for a personal loan. Once he got a credit card, he used it regularly and paid the balance off each month. This gave him a nice credit history and he was successful in applying for a personal loan.  Disclaimer – in no way is this financial advice. Each client’s circumstances is different. Please if you need financial advice get in contact today and we can refer you to a service to help you best.