Finance Australia :: Articles

Managing Credit Card Debt

How can I effectively manage and reduce my credit card debt?

Managing Credit Card Debt

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

If your credit card debt is starting to get out of control - or you simply want to know how to avoid potential credit card pitfalls, you are not alone. Managing credit cards is a problem faced by many who are now drowning in an ocean of debt. Here are some simple strategies that may be of help.

Consequences

Some people think that credit cards are free money to be used and never think of the consequences of overspending.
Now people around the country are faced with debt management to get out of debt and enjoy life again.
Learning how to consolidate debit is important and learning how to stay out of debt is even more important.

Put them away

To keep your debt from spiraling even more out of control, you should consider putting your credit cards away for a while. Try to use cash to make purchases and make sure to learn how to channel your spending habits.
Debt Stressed?
Image for Debt Stressed?If you're struggling to pay your debts and covering living expenses, we're here to help. Through our national panel of Debt Management specialists, we can help customers with $10k or more in debt by consolidating your existing loans, stopping Debt collectors from contacting you and re-negotiating repayments on your terms!
You’ll want to exercise restraint in spending and not buy everything you see. You should work on a monthly budget to help you control spending.
Just because something is on sale now, doesn’t mean you need to buy it now.

Keep them under control

Don’t ever use more than 70% of your credit line at one time, that is a basic rule to be followed.
Keep your spending under control until your income goes up or you get out of debt. You don’t want to make things worse and harder on you and your family by putting yourself into even more debt.

Consolidate and save

You may also want to consider learning how to consolidate debt. This means you move the balance of all of your credit cards onto one card.
This card should have a zero interest as a starting benefit or have a lower interest rate than your other cards.
Make sure you read all the fine print before you do anything, because you don’t want to miss an important fact and end up paying more money. You can compare credit card offers here.
You can also call your credit card company and try to negotiate with them and see if they can lower the interest rate on your current card.
Another alternative is to consolidate your credit card debt with a personal loan. This should mean a single monthly repayment at a lower interest rate ... but you should also take steps to avoid accumulating new credit card debt in the future.

Pay them off

Try to pay off as much of your debt as you can each month. This will help you save money by lowering the interest rates you are paying each month. You also may want to consider closing out some of your credit card accounts.
Make sure you aren’t applying for more credit cards just because you have no more credit available to you on your current card. You will find yourself in even more trouble if you do that. You should also be warned that you may not even get the credit card approved if you try to do this since you are wrecking your credit rating already. Try to stay away from any kind of new loans at this time, until you are out of debt.
Remember that most things you want to buy can be bought later on and you don’t need them now. Having security and money in the bank will protect you and your family.

Published: Sunday, 1st Aug 2021
Author: 8


Finance Articles

The In-Depth Guide to Boat Loans in Australia: What You Need to Know Before Diving In
The In-Depth Guide to Boat Loans in Australia: What You Need to Know Before Diving In
Australia, with its expansive coastline and spectacular waterways, naturally cultivates a rich culture of marine enthusiasts. Imagine the salty breeze on your face as you slice through waves, the call of seabirds overhead, and the freedom to explore hidden coves and beaches – this is the quintessential Australian boating lifestyle. - read more
An Insider's Guide to Enhancing Your Credit Profile for Any Loan
An Insider's Guide to Enhancing Your Credit Profile for Any Loan
Having a robust credit profile is one of the most critical factors for financial health, especially when seeking loans in Australia. Whether you're eyeing a new car, dreaming of a home or simply want to secure a personal loan for unexpected expenses, your credit score often dictates the outcome. Not only does it influence a lender's decision to offer you finance, but it also affects the interest rates you might be charged. - read more
Creating a Bulletproof Budget: Tips for Australians Juggling Debts
Creating a Bulletproof Budget: Tips for Australians Juggling Debts
Creating a sturdy financial foundation is essential for Australians navigating the often turbulent waters of debt. A bulletproof budget does more than just track expenses; it acts as a buffer against unexpected financial downturns and provides a clear path toward financial freedom. Comprehending the full weight of this importance is the first step to turning one's financial destiny around. - read more

Finance News

Markel Insurance Expands into Australian Marine Market with New Leadership
Markel Insurance Expands into Australian Marine Market with New Leadership
29 Dec 2025: Paige Estritori
Markel Insurance has announced the appointment of Tim Wills as Head of Marine for Australia, marking a significant expansion into the country's marine insurance sector. Based in Sydney, Wills will spearhead the introduction of Markel's marine products, starting with marine cargo coverage. This move represents the company's first foray into the Australian market beyond its existing long-tail lines established two years prior. - read more
Pelagic Risk Services Strengthens Commitment to Australian Marinas
Pelagic Risk Services Strengthens Commitment to Australian Marinas
29 Dec 2025: Paige Estritori
Pelagic Risk Services, a specialist marine insurance broker, has announced an increased commitment to the Australian marina industry by upgrading its sponsorship of the Marina Industries Association (MIA) from Silver to Gold. This enhanced partnership underscores Pelagic's dedication to supporting marinas across the nation. - read more
Marinex Underwriting Debuts in Australian Marine Insurance Sector
Marinex Underwriting Debuts in Australian Marine Insurance Sector
29 Dec 2025: Paige Estritori
Rhodian Group has announced the launch of Marinex Underwriting, a new marine underwriting agency set to address complex marine insurance needs across the Australian market. Backed by global specialty insurance distributor Amwins, Marinex is co-founded by industry veterans Janelle Karnib, Chris Kelly, and Ainsley Smith. - read more

Free Loan Eligibility Assessment

Loan Amount:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.


Knowledgebase
Jumbo Loan:
A mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).