Credit Card Debt Consolidation
Reduce your credit card debt
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How to Consolidate Credit Card Debt & Save Money
One of the Australian Lending Centre’s most popular services is credit card consolidation. Australia’s credit card debt has risen to record levels over the past 12 months and yet, the amount of repayments aimed at reducing credit card debt has drastically fallen, forcing Aussies everywhere to look for credit card consolidation solutions. This page will show you how to consolidate credit card debt and present you with leading credit card debt reduction strategies including debt consolidation loans.
5 Tips on Credit Card Consolidation & Debt Reduction
1. Use the equity in your home - refinance your home loan & consolidate credit card debt quickly
One of the most cost-effective techniques for credit card consolidation is to use the equity in your home – by refinancing your mortgage and taking advantage of lower interest rates, credit card consolidation can be achieved quickly. This not only makes repayments both easier and more manageable but allows you to substantially reduce the amount of interest you pay overall.
2. Debt consolidation loans - consolidate credit card debt into one affordable payment
Credit card consolidation is often one of the most popular reasons for a debt consolidation loan. Credit card consolidation loans are perfect for those who need to consolidate multiple credit cards, store card debt and personal loans, as they can drastically reduce the amount of interest you pay to service each debt.
Here’s an example of the money you can save with a credit card consolidation loan:
Take for example a credit card debt of $5,000. If you pay the minimum repayment of 2% of the balance, it could take you up to 36 years to pay it off and you could pay over $15,000 in interest. With a credit card consolidation loan from the Australian Lending Centre, you could pay this $5,000 back in a little over 2 years for around $60 per week, with interest charges in the low hundreds instead of thousands of dollars.
3. Pay your credit card debt in order of priority
This is a popular credit card debt reduction strategy, helping people get out of credit card debt faster. If you have multiple credit cards or personal loans to pay, the idea is to pay more towards the credit card debt that charges the highest interest rate, followed by the second highest and so on. By doing this, you can minimise the total amount of interest paid in servicing the credit card debt without using a credit card consolidation strategy.
4. Credit card consolidation with a balance transfer
Another way to achieve credit card consolidation is to take advantage of credit card balance transfer offers by rolling multiple cards onto one. There are several credit card consolidation offers at present, offering a 0% interest rate on the balance transferred for up to 6 months, followed by a lower-than-usual interest rate of around 12.5% thereafter. It’s important to take advantage of the no/low interest period on all credit card consolidation offers, as some will return to an interest rate similar to that which you were trying to avoid by consolidating credit cards in the first place.
5. Cut up your credit cards
Another popular debt reduction technique is removing the temptation all together – cut up your credit cards before the debt accumulates. For those who have become reliant on credit card debt to budget, this can be a frightening concept. But if you can change the way you think and budget, this may be the fastest way to get out of debt without using a credit card consolidation strategy.
To get out of credit card debt simply fill in the confidential enquiry form to the right, we will then contact you to discuss your options for a credit card debt consolidation loan.