5 simple steps to get rid of credit card debt
For some reason many years ago you got your credit card with the intention to pay it off asap but as the years went on you casually paid for things here and there and you have now woken up with multiple maxed out cards and unsure how you are going to get out of it.
Don’t worry we have all been there. There is $45 billion in credit card debt in Australia and. 2 out of 5 Australians are struggling to pay their minimum repayments.
So then why do we feel like we are battling this debt on our own. Why do we feel like we are the only ones with credit card issues?
You could use debt consolidation over a term but that could stretch out your debt for longer than necessary.
You could do a balance transfer into a 0% interest rate for a certain period of time.
Both of these are possible choice but remember there are fees involved in setting up and when the interest free period ends the interest rate could sky rocket.
We looked at these options ourselves but we decided we didn’t want to be locked into a new debt, we wanted to keep ourselves accountable but knocking one credit card off at a time.
In 2 years we have cleared $17,000 in debt by following the below steps
Freeze spending on all of your credit cards.
Calculate what you owe, gather your unpaid credit card bills and find the total you owe. Once the figure is there in front of you , you know the exact amount you need to pay off and you are not going to forget it.
Create your budget, know how much you can budget for to pay off debt.
Target one card - Choose ether the highest interest of the lowest balance and budget to pay all minimum repayment and extras onto one.
Deliver exactly what you budgeted for and be 100% committed
If you are struggling to find out how much you can contribute to your debt download our 3 Step budgeting guide its FREE
Is a mother of 3, on a mission to build financially confident families across Australia and New Zealand.