Practical Ideas to Manage Credit Card Debt

Managing Credit Card Debt

Have you noticed how almost every commercial establishment is now making irresistible offers just to convince you to spend and it’s usually using your credit card? Credit card firms are also increasing credit card limits for many consumers to encourage spending. The consequence is quite logical. Many consumers across Australia are now caught into a vicious debt trap. Credit card debt problems are now commonly part of household troubles. Here are some ideas to manage credit card debt.

Credit Card Debt Management

Repaying credit card debt is very difficult. You must make the decision to pay more than the minimum required payment each month. It is inferred that a $1,000 credit card debt would be repaid completely after 11 years if you would stick to paying a minimum 2.5% required payment each month. Worse, you would be paying up to $860 overall in interest during that entire duration.

Consequently, financial counsellors are in demand across Australia today. Many consumers just could not believe how they have become heavily indebted through credit card debt. Consultation with a financial counsellor is recommended before debt problems get more out of control.

You would be surprised at how some insights and advice are so practical and simple. Why have you not thought of such ideas before you’ll think? To obtain more understanding, here are a few practical tips that are aimed at helping you manage your credit card debt more effectively.

Ways To Manage Credit Card Debt

First, have the determination to avoid using your credit cards further. From now on, try to spend with cash as often as possible when purchasing items. This way, you could prevent your credit card debt from further accumulating. You would also restrict your spending. Studies have shown that people usually refrain from spending too much when using cash to fund transactions. Consumers tend to spend more on significant but unnecessary items if they think purchasing would not hurt through credit cards. In the long run, they are proven wrong, of course.

Try to pay the entire credit card balance as soon as you can. It is best if you would do so prior to the maturity or lapse of your credit card’s interest-free period. It is better to use the credit card as a replacement to cash if you intend to immediately pay the used amount off your credit card in full incredit a few days.

Credit Card Limits

Do not exceed your credit card spending limit. It would be troublesome especially if you have a high credit limit. As a disciplinary strategy, try to lower your card’s limit to an amount that you could possibly repay in whole in a short period. This way, you could avoid the itch to spend relentlessly beyond your means.

Resist the temptation to get another credit card if you have used up the limits on your current ones. Doing so would not resolve your credit card debt problem. On the contrary, it would lead to more and bigger problems in the long run. At the same time, fight the urge to use cash advance features because interest rates applied are usually higher in such transactions.

Lastly, consider cancelling your credit card accounts. You may decide to keep just a single card, the one with the lowest interest rates. Consider credit card debt consolidation through balance transfers. The best option is to switch to using a debit card as they use your own money, but give you the benefits of credit cards such as online transactions.

If all else fails and you need to look at more permanent debt solutions, contact the Australian Lending Centre today on 1300 138 188 or simply complete the enquiry form to your right and a debt consultant will contact you shortly.

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