Using a credit card for your spending can have many benefits, these benefits may include added legal protection, travel insurance, cashback or collecting loyalty points at your favourite shops. However if you don’t pay your credit card bills off regularly in full each month this debt can get quickly out of control. Here’s how to stop that happening.

If you are struggling to pay off your credit card bill, the first thing you should do is

  • contact your credit card provider to discuss your problem as soon as you realise you have got a problem with paying the bill. They may well agree to let you pay a reduced amount for a while.
  • Also make sure that you ask for any interest they are charging on your outstanding balance is frozen so that the credit card debt does not go up even though you are paying money to pay it off.
  • Generally speaking it is not a good idea to increase the limit on your credit card when it has outstanding credit debt that you are struggling to repay, as this is highly likely to get you into even more debt with your credit card company.



Beginning of the month, money all gone, what to do now?

We have all been there, monthly salary comes in and then somehow 80% of its all gone in 5days. Endless debt cycles and bill payments you were not expecting are a constant drain on life. So try this, one tactic whilst I was in debt the whole time with these companies and unable to get a second job, was to work from my smartphone/laptop. It is really easy and you can do it whilst watching TV/in bed or on the bus, you just spend 10mins a day online using, ‘get paid for your opinion’ websites. You go to the website, pick a survey to complete, click and answer some questions and you get cash or vouchers for Coles, Myers etc. I did it everyday and you earn immediately as they are free to join.

Credit card debt can be very expensive. Currently bank base interest rates are the lowest rate they have ever been at 0.5%, despite this the average interest rate charged on a credit card is 18% APR (annual percentage rate) though this can be as much as 50% APR depending on the card. Transferring your balance to another credit card that pays a lower interest rate may help reduce your monthly payments.

If you have a bit of debt and really are stuck, then to be honest, you just need a get out of debt button. A solution to get rid of the stress and debt now, as the interest and charges are adding up daily. If that is the case, then I would recommend using this company, it is the only one in Australia I would trust and they will contact your creditors and stop everything for you straight away, so you can get back on your feet.


One of the option for borrowers with existing credit card debt is to move it to a balance transfer credit card. These cards offer a period in which no interest will be charged on that debt, meaning that every penny of your repayments goes directly towards reducing the size of your original debt. You will need to pay a fee to transfer your debt over, usually around 3% of the balance transferred (subject to a minimum fee level), so if your outstanding balance is $1,000 it will cost you $30 to switch. These balance transfer credit cards are usually only available to people with a good credit rating so you may have to shop around for a good deal depending on your credit rating. If you have debt on more than one credit card, you will need to work out which one to pay off first.


As a priority you should focus on the card with the most expensive credit card debt first. If, for example, you owe $1,000 on a card charging 19% annual interest and another $1,000 on one charging 34% annual interest, concentrate on the card charging 34% interest first and pay as much as you can. Once the you have cleared the debt from the expensive card you can then look at paying off the credit card which charges 19%. Make sure you continue paying at least the minimum payment on the cheaper card(s) throughout. Otherwise missed payments will damage your credit rating and you will probably have to pay extra fees.

Do not stop or reduce payments on any loan or credit commitment secured against your house or on rent and utility bills as these must take priority over credit card debts.

You may well find it easier if you are able to set up a Direct Debit for your credit card payments so that will ensure you never forget to pay at least the minimum. In this way you will not be charged a late payment fee, or have any interest-free period on your card removed if you have an interest-free card.

Set up a Direct Debit now, preferably to pay the full amount every month automatically. If you can’t afford this, you can set up an automated payment for more than the minimum, but make sure you always pay the minimum at least.


It can be daunting when you can’t pay your credit card bills, and making payments can sometimes seem like throwing good money after bad. However it doesn’t have to be like that and there is help out there.

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