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Simple steps to regain control of your credit cards

Why can credit card debt feel overwhelming? Credit card debt can quickly spiral out of control. High interest rates and impulsive spending make it challenging to regain balance. However, small, consistent actions can help you take control and create a more secure financial future. Here’s some advice to get you started.

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Stop using credit cards for everyday expenses

Credit cards should be a tool, not a crutch. Begin by switching to cash or debit for daily purchases. This change helps you break the habit of relying on credit cards and prevents new debt from accumulating. Reserve your credit cards for emergencies or planned expenses only.

Track your spending

Knowledge is power when it comes to managing your finances. Use budgeting apps or a simple spreadsheet to track every transaction. Categorise expenses to identify patterns and areas for improvement. For example, if dining out is a significant expense, consider cooking more meals at home. Our free personal budget template is a great tool to help you see all your expenses in one place.

Take time to review your spending patterns regularly. Are there subscriptions or memberships you no longer use? Are impulse purchases contributing to higher balances? Eliminating these drains can make a substantial difference.

Reduce your credit limit

Reducing your credit limit can help curb overspending. Contact your credit card provider to request a lower limit. This step ensures you stay within a manageable range while still maintaining the benefits of your card.

Additionally, avoid increasing your limit unless absolutely necessary. Keeping a lower limit fosters discipline and reduces the temptation to overspend.

Pay more than the minimum

Making only the minimum payment keeps you in debt longer and increases the total interest paid. Aim to pay more than the minimum each month, even if it’s a small amount. Consistently chipping away at the balance accelerates your progress.

Every additional payment brings you closer to financial freedom. Whether it’s an extra $20 or $200, small contributions compound over time, helping you achieve your goals faster.

Cancel unused credit cards

Once a card is paid off, consider canceling it. Fewer cards mean less temptation and simpler financial management. However, keep one card open for emergencies and to maintain your credit score.

Closing unused accounts can also streamline your finances and reduce the likelihood of accidental overspending or forgotten payments.

Automate payments and set reminders

Automating your payments ensures you never miss a due date, protecting your credit score and avoiding late fees. Additionally, set reminders to review your statements monthly for accuracy and to monitor your progress.

Regular reviews not only catch errors but also provide an opportunity to adjust your strategy if needed. Staying engaged keeps you on the path to success.

Build an emergency fund

An emergency fund reduces your reliance on credit cards for unexpected expenses. Start small by setting aside a portion of your income each month. Over time, this fund becomes a safety net that provides financial peace of mind.

How MyBudget can help you regain control

At MyBudget, we specialise in helping people regain control of their finances. Our tailored budgeting plans are designed to fit your unique situation, making it easier to manage credit card debt and build financial stability. From negotiating with creditors to creating a step-by-step repayment plan, MyBudget provides the tools and support you need to succeed. Contact us today to learn how we can help you take charge of your financial future.

By taking these steps, you can regain control of your credit cards and create a solid foundation for long-term financial stability. Enquire online or call 1300 300 922 to book your free budget consultation today.

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This article has been prepared for information purposes only, and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this article you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.