One credit card can be a handful let alone multiple credit cards. When you have many cards, with different rates, limits, interest free periods and late fees, effectively managing your money can be a bit tricky. This is where credit card debt consolidation can be super helpful.
To get ahead of credit card debt, you must face how much debt you have. As hard as it is, look at your statements to workout how much do you owe on each debt and check the interest and fees on each credit card debt.
It's vital that you to work out your income and where your money. You can use ALC's Free Budget Planner Tool to determine how much you can realistically afford to pay each month.
While it is stressful to do you now know how much debt you owe and what you can afford to put todays debt repayments each month. Our application process is simple and we will help you with options.
At ALC we help our customers move into a credit card debt consolidation loan, with just one repayment for all of your debts. This makes it much simpler to remain on track, saves time and stress about which card and how much is due. Let Australian Lending Centre find help a credit card consolidation loan by applying online or reaching out on 1300 138 188.
Set yourself up for a debt-less lifestyle! We have been helping Australians through the consolidation process for over a decade, we know what it takes to get you the best deal and we strive to get you debt relief fast!
Source: RBA 2012
Source: Finder / RBA
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.
Take for example a credit card debt of $5,000. If you pay the minimum repayment of 2%, 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
Pay off Your Credit Cards In Order of Priority
This is a popular strategy, helping people get out of debt faster. If you have multiple credit cards or personal loans to pay, the idea is to pay more towards the 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 debt in an organised way.
Use A Balance Transfer To Pay Off Credit Card Debt
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 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.
One of the most cost-effective techniques to consolidate credit card debt is to use the equity in your home – by refinancing your mortgage and taking advantage of lower interest rates, credit card debt 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.
Cutting up credit cards for some is both a symbolic and physical way to stop spending money you don’t have. But you need to also remove your credit cards from automatic payments, subscriptions and payments from platforms like Google Pay and PayPal to ensure your don’t keep spending. Just having a balance for some can be a big temptation, so removing the temptation online and in-store can prevent your debt from growing.
If you can keep you credit card accounts and completely paid off this will help your credit score. Just be strong and do not to use your credit card. Get a debit card and only spend money you actually have in the bank.