Thousands of Australians have credit card debts that are spiraling out of control.
If you have a number of credit cards requiring monthly repayments, it’s plain to see how much of an impact they have on your available income.
Some ways to reduce your credit card debt are to move your debt to lower interest rate cards; pay your debts off in order of priority; and consolidate debts into one payment.
For those who maintain several credit cards with varying interest rates, try to move as much of your debt as possible to a lower interest card. But don’t forget to cancel the higher interest card once you have shifted your debt elsewhere.
This can save you hundreds each year and make it easier for you to pay the debt off quicker.
If you cannot consolidate the credit cards into one lower interest rate card, make it your priority to pay more off the card with the highest interest first rather than paying them all off at the same rate which is what most people tend to do.
This will reduce your overall interest payments dramatically and once the higher rate card is paid out then you have smaller debts that are easier to manage.
You could consolidate your debt into one easy, manageable payment with a personal loan, or if you are a homeowner, you may be able to refinance to pay off your credit card debts at a lower interest rate than those of your cards.
However, if you have major debts that you’re struggling to manage, Safe Financial can help you with a debt agreement.
Simply call us on 1300 661 991 today to find out how we can put you on the path to financial freedom.