Credit Card Debt

Unfortunately credit card debt is very real, but it need not get you down. We are here to help you get out of your credit card debt soon!

Controlling Credit Card Debt

It's estimated that Australians are carrying more than $33 billion dollars in credit card debt that is accruing interest at a high interest rate. Poorly managed credit card debt can be responsible for much financial hardship and can reduce the available disposable income coming into the family home each week.

If you're struggling to repay the amount you owe on your credit card balance, there are some ways you can regain control of your finances and begin to reduce the amount outstanding on your credit card statement.

The key to reducing credit card debt is to understand what you can do to reduce the costs associated with the money you owe and then remained disciplined enough to put your cost savings back towards repaying your debts.

Using a Balance Transfer Card to Reduce Debt

If you're currently paying a high interest rate on your outstanding balance, you could benefit from switching to a credit card with a much lower interest rate. There are plenty of balance transfer cards available with very low introductory rates.

By transferring your outstanding balance over to one of these cards, you'll reduce your interest costs each month. This can also reduce your monthly repayment amount dramatically.

In order to begin reducing your credit card debt quickly, you should ideally be putting your interest savings back towards paying more than the minimum amount due on your payments each month. This will chip away at your debt levels much faster than you thought possible.

Reducing Debt Levels Through Consolidation

By consolidating all of your high interest debts over to an option with a much lower rate of interest, you could be saving money. Instead of watching the majority of your repayment going towards just covering interest costs, you could be putting that same amount of money towards reducing the amount you owe.

Discipline Counts

Most credit cards have their monthly interest charges calculated on the amount you owe daily and then shown as an interest charge on your statement at the end of the month.

As you begin to reduce your credit card debt, your monthly minimum payment may also reduce accordingly. The key to really taking control of your credit card debt is to continue to pay the same amount you were paying when the balance was higher, even when your expected minimum payment is much less.

Patience

Another point to remember when you're tackling your debt levels and trying to bring them down is to be patient. It took you time to get into debt and it's going to take you time to get back out of it again.

However, the amount of time it takes can be reduced by being vigilant about watching your interest costs and making sure you're paying more than the minimum due each time you make a payment.

How to cope with credit card debt

The right way to deal with credit card debt is to confront your feelings. People who are under stress about credit cards and money can often make poor decisions, have trouble concentrating and even have difficulty sleeping.

People sometimes avoid dealing with monetary problems because they don't know what steps to take.

If you find yourself in credit card debt, you should not try to hide your feelings. Instead, talk to friends and family who may have gone through the same thing and might be able to offer you relevant advice. They will also offer you moral support, which will help you to take decisions calmly.

Once you start to take steps to cope with credit card debt, you will start to feel better. Taking some action will help you feel that you are making progress, and this in turn will help you take more positive action.

If you are coping with credit card debt, you should try to follow these guidelines:

• Decrease stimulants that can induce stress, such as caffeine or carbonated drinks
• Avoid drugs and alcohol
• If you are a smoker, remember that smoking does not reduce stress but only adds to your expenses and your credit card debt
• Eat a healthy diet

Remember that your problems will decrease over time. If you are suffering from depression, it is important to see a doctor and get treatment. You can also call the Beyond Blue helpline for immediate support.