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Credit card debt can sometimes seem like a mountain the size of Everest that you lack the equipment to climb. We have five strategies that you can use to chip away at your debt, and slowly but surely make your way to the top of your Everest.
If you owe money on multiple cards, the best course of action is to target the card with the lowest balance first, and pay whatever you can to bring down the balance. Seeing the amount owed on one card decreasing will assure you that you are making progress towards your goal. Once one card is paid off, it’s time to tackle the next!
It can be worth your while to set aside an afternoon to call around to a few banks to enquire about their interest rates. Often times your bank will give you a lower interest rate in order to match a competitor. This will mean less debt to pay off in the long run, and will save you the hassle of changing banks or providers.
If you are unable to pay off a larger sum each month, try to make your minimum payment twice. Often times, banks will add interest on a daily basis, so the more often you can make a payment, the better. Instead of making a payment every month, try to do so every two weeks, which, ideally, would match up with your pay cycle. This will mean you are paying twice the amount off your credit card as you would normally.
One of the best things to do when working at paying off your debt is to avoid getting into more. We recommend using a debit card in the meantime for all your expenses. This would ideally include day to day expenses like groceries, as well as larger bills and rent. Take some time to set up all your automatic payments to withdraw from your debit account. Doing this will mean you can start to see some real progress in your quest to pay off your debt.
Making and sticking to a budget will mean you can easily keep track of your spending and can see where your money goes. Use a budget calculator to make a realistic budget that is easy to stick to and will keep you on track. Sit down every week and go over your spending, and from there you can eliminate unnecessary costs and see exactly where your money is going.
It’s okay to ask for help if things are feeling to hard, or if you don’t know where to start. Contact our debt consultants for a free initial meeting. We are here to help!
Beyond Debt is a trading name of DCS Group Aust Pty Ltd. Australian Credit License: 382607. RDAA Number: 1126. PO Box 3074 Newstead, QLD, 4006.
DCS Group operates under a Limited Liability scheme approved under Professional Standards Legislation
