How to Escape Credit Card Debt

How To Escape Credit Card Debt

The introduction of credit cards has certainly made our lives easier when we need to make a purchase or get access to cash for a night out when we don’t have the money. We just whip out the plastic and away we go. Unfortunately while credit cards are very easy to use and accumulate debt they can make you wonder, ‘how you’re going to escape you’re credit card debt,’ with the monthly repayments hardly making a dent on your debit balance.

Because almost anyone can get a free credit card Australian consumers carry what is a rather large debt on their credit cards. In Australia, the average credit cardholder carries a debit balance of $3000.

Repay your credit card balance while enjoying a 0% interest rate

One of the first things all consumers should do when assessing their credit card debt s to shop around for a credit card that offers you a 0% interest rate. There are financial institutions that offer a 0% rate of interest on balance transfer credit cards to gain your business. There is no reason for anyone to be repaying a credit card that is still being charged interest each month.

Visit the tools section to view the balance transfer credit cards available. Each financial institution offers a variant on the term of the zero or low introductory rate so be sure that if/when you apply for one of these new low or zero rate interest credit cards that you are applying for the card that you want.

Should you cancel your credit card to help you repay your debt?

NO. There is no reason to cancel your card. If you want to take away the temptation to use your credit card then what you can do is destroy your card and simply ask the financial institution for a replacement card once your debt has been repaid.

You can destroy your card by getting a pair of scissors and simply cutting it in half long ways through the numbers on your card and also through the magnetic strip along the back of the card.

I have more than one credit card maxed out to the limit

Many people have more than one credit card for the sake of convenience and in many cases both or more of their credit cards are maxed to the limit making repayments a financial strain and burden that can be difficult to live with.

Consolidation of your credit card debt can make things a lot easier for you. You have a few options in how to consolidate your credit card debt available to you.

You can take out a personal loan that can wipe away all the debt on your existing credit cards and giving you one easy payment to make each month.
You can apply for a new balance transfer credit card and have the debt of all your credit cards in the one credit card account.
For those with very large credit limits, you can apply to refinance your mortgage to repay your credit cards.

Avoiding Credit Card Debt

They say prevention is the best cure and when it comes to credit card debt the best prevention you can take to avoid credit card debt is to firstly, make sure that you are getting the best credit card for your financial circumstances.

There is no doubt that the majority of the population need to have access to credit at some time in their day to day lives. Circumstances pop up for everyone and access to credit is a necessity.

You have to consider what this credit facility will cost you and how it will affect your finances in the future when it’s time to repay your credit card debt.

Finding the best credit card for you is made easier by visiting the tools section of our website. Here you can compare the different types of credit cards available to Australian consumers. The credit card comparison is very easy to read and the chart shows you what fees, charges, annual fees, rates of interest and other features and benefits are associated with each of the cards available.

You can certainly find a free credit card that is cheap to use while offering you a low interest rate.

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