One in six Australians falls into the trap of credit card debt

Nearly 1.9% of Australians are drowning in credit card debt, and a staggering $ 45 billion debt is due nationwide, with interest on $ 31.7 billion .

ASIC also found that consumers could have saved up to $ 621 million in interest between 2016 and 2017 if they only did not carry balances over time on a credit card. high interest. The report revealed that while some Australians were able to reduce their debt during the promotional period of a balance transfer on a new card, more than 30% of cardholders were increasing their debt by 10% or more without count the $ 1.5. $ 1 billion credit card holders were billed collectively for annual fees, late payment fees and other costs badociated with the use of their credit cards

<img clbad = "lazyload" data-src = "https://vu7yglnm2s4hq-cdn-storage.azureedge.net/cache/3/2/3/4/e/b/3234ebf33f28602e5060be23c56cd4147adbfbc5.jpg" alt = "The ASIC has identified persistent debt, low repayments and inappropriate products for clients, problems that lenders do not solve, which means lenders do not act in the best possible way.

How to repay debt of a Credit Card

Getty [1965901] 0] Consider a 0% balance transfer offer to minimize interest payments in order to pay off your credit card debt faster But beware – This strat Aie only works if you have a solid plan in place to repay the full balance during the promotional period, and you do not use this card for purchases. Otherwise, you fall into the trap of paying a high interest rate after the promotional period.

Make sure your credit card payments are debited directly from your payday account and pay more than the minimum refund. Minimum monthly repayments on your cards but focus on paying as much as you can afford on the debt with the highest interest rate first. Otherwise, start with the smallest amount due and increase your account.

Close each credit card account when you pay it.

Lower your credit card limit

If you still have difficulties, contact the credit provider. Ask the Department of Difficulties and Arrange a Reimbursement Plan

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