1: Cut up Your Credit Cards

The first step to getting off the debt cycle is to cut up your credit card. Even if you only pay the minimum monthly payment you are moving in the right direction.

2: Move Your Debt to Lower Interest Rate Cards

Credit card rates vary from around 10% per year up to 30% in some cases.  it is advisable to move as much of that debt as possible to a lower interest card if you can.

3: Pay Your Credit Card Debt in Order of Priority

It makes sense to pay off the debt with the highest interest rates quicker.

4: Consolidate Your Debt into One Affordable Payment

If you are a home-owner you can investigate options such as refinancing your home to pay off your credit card debts.

5: Rewards Are Not Important

Many credit cards offer rewards schemes as an incentive to use them. Rewards schemes are costly to run and these credit cards may have an annual fee attached and a higher interest rate.  Often you have to spend in excess of $20,000 per year to make any reward scheme worthwhile. If you are in credit card debt you will want to reduce your spending, not increase it.

If you are in debt and want to know more about the solutions available to you contact us on 8208 7002