Hands up if you love large credit card bills!
Anyone? Anyone? Bueller? Well of course not, don't be ridiculous.
On average, Australians are being charged a staggering $6.2bn on credit card interest annually. Even by rough calculations that's just under $300pp in Australia. Just in interest. Every year. It's money for jam for the big banks!
Do yourself a favour: follow our simple tips and take some of that money back out of their greedy little hands.
Five tips for reducing your credit card debt
- Beware of teaser rates and interest-free honeymoon periods. Read the fine print. You could build up a stack of debt and be unable to pay it off when the card reverts to the full rate.
- Don't use your credit card as a borrowing tool. A debit card could meet your needs.
- If you find you don’t pay off your full balance every month, consider moving to a no-frills, low-interest card. There are plenty on the market.
- Think twice before chasing expensive rewards points and programs. Our research on credit card rewards shows that you generally need to spend huge amounts of money on your credit card to make rewards worthwhile.
- If you have multiple cards with debts, cut them up and pay off the smallest balance first. Then cancel that card and move to the next smallest debt.