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Stressed about debt? Here’s seven ways to consolidate your credit card debt faster

Feel like you’ve got too much credit card debt to get ahead of? Need tips on how to consolidate credit card debt or help managing credit card debt? You’re not alone.

Australia’s combined credit card debt is worth around $50 billion. But this doesn’t make debt stress acceptable! We’ve shown thousands of clients how to reduce credit card debt faster and start living the debt-free, stress-free life you want.

A woman in a white shirt holding up two blue credit cards

Keep reading for seven tips on how to reduce your credit card debt and consolidate credit card debt:

Reduce your spending

Wondering how to reduce your credit card debt? It’s simple: reduce your spending. Every dollar you save is a dollar you can use to reduce your credit card debt faster.

We’re not suggesting you live on baked beans – we’re talking about analysing your finances and identifying areas where you’re paying more than you need to. Most people are able to find savings in their budget they didn’t know existed, which they can use to reduce their debts faster.

Talk with your creditors

Too much credit card debt across multiple creditors? It can be confusing about who to pay first or which credit card balance to focus on. And being under stress only makes it harder to make clear decisions. If you’re finding it difficult to meet your commitments, don’t ignore the problem – reach out to your creditors and speak with them about payment terms that are affordable for you.

Create a budget

Is your cash flow crisis short-term or chronic? This will help you work out if you need to consolidate credit card debt or if you need more help managing credit card debt.

There’s only one way to know for sure and that’s by creating a detailed, customised budget that includes all of your income and expenses and demonstrates your position over a 12-month period. Short-term budgets are a good start, but they’re too easily derailed when unexpected expenses or six-monthly bills pop up. A long-range budget will show exactly what you can achieve with your money in the next year and beyond. Here’s how to make a budget.

Get into good, daily money habits

If you think you need help managing credit card debt, start by changing your daily habits. One of the best ways to make a dent in your credit card debt is to stop using it. This will help stop impulse buying. A good way to quit your plastic addiction is to start using only cash for your living expenses. Cards make us more likely to spend more, and cash is a visual reminder of your budget right there in your purse and wallet.

Think before you leap into a balance transfer

It can be tempting to believe that a credit card balance transfer might solve your financial problems. However, we’ve helped lots of people who came to us for help after racking up balances on both their old and new cards and ending up in even deeper debt than they started with. Before embarking on a balance transfer, the key is to have a budget in place to help with managing credit cards. It helps you save and frees you from reliance on your credit cards once and for all.

Stay positive

Do you feel embarrassed about having too much credit card debt? Are you fighting about money with people you love? Is it affecting your health or work? The impact of debt stress is real and it can be incredibly damaging. We want you to know that we’ve never encountered a financial situation that can’t be fixed. Instead of letting it get you down, make a plan to take control of your finances and say goodbye to money worries forever. Know that anything is possible with hard work and planning – this couple paid off $30k in credit card debt, and now they’re stress-free.

Still wondering how to reduce your credit card debt? Ask for help

They say a problem shared is a problem halved, and sometimes all it takes is a fresh set of eyes to see a situation from a new perspective. Share your situation with someone who’s good with money. It could be a trusted friend or family member or work colleague. Or it could be MyBudget. Just know that you don’t have to do it on your own. Watch Mia talk about how she paid off $25,000 in credit card debt in two years.

Would you like to see how a budget can change your life, and help you consolidate credit card debt? Give us a call on 1300 300 922 and a caring money management expert will put together a customised budget for you. Remember, we’re always here to help.

Ready to find out more?

Call 1300 300 922 or get started today

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.