Sadly, we Australians live in a swirling pit of credit card debt. According to the Australian Securities and Investments Commission, Aussies owe approximately AU$32 billion on their credit cards. This equates to around $4,300 per card holder, which is evidently far too much than most of us would like.
What, then, can we do about our mounting credit card bills? Though debt is never easy to escape, at CAPE, we've come up with a few ways to help you battle out of the abyss.
If you have multiple cards, you should always aim to pay off the one that has the highest interest rate first.
Pay more than the minimum amount each month
Every credit card will have a minimum monthly payment threshold. You should be able to find this on your latest statement or getting in touch with your provider. It's all well and good meeting this minimum payment (which will also keep you out of trouble with your credit rating) but to really haul yourself out of the grip of your credit card, you should try to pay off more than the bare minimum.
Not only will you pay off the plastic far more quickly, you'll end up paying less, too, as interest won't have a chance to accrue. You could even apply for a loan from CAPE to pay them off in one fell swoop – this way, the only money you'll owe will be to your friendly customer-owned bank.
Stay on target, and aim high
It can be well worth your time setting up a budget planner, so that any spare cash you have left over at the end of the month can be thrown squarely at your credit card bills. If you have multiple cards, you should always aim to pay off the one that has the highest interest rate first. This is so that you give your most expensive card as little chance as possible to burn your fingers. Once you've squared that one off, move on to the next highest. As you work your way through your cards and with sensible planning, you'll find that you're left with more and more money left over at the end of each month – and soon your credit card debt will be a thing of the past.
Chop your cards in half
It sounds simple, but by not using your cards, you won't give them a chance to accrue any more debt. Of course, you'll still have to pay what remains, but by not using them, you're on the right path. Think about it – by continuing to use a credit card, you're being counter-productive in your efforts, so leave them at home when you head to the shops.
To find out more about CAPE's services, be sure to get in touch with us today.