Switch to save
If you’ve got credit card debt, it’s worth thinking about switching to a debit card. You’ll need to have enough in your debit account for any pending transactions and to avoid getting overdrawn. Consider cutting out any ‘buy now, pay later’ purchases, which may end up adding to your debt. If you’re keen to hold onto your credit card, find out how to set yourself some limits to help you manage it.
Meet your minimum repayments
If you’re not able to meet the minimum repayments on your debts, you may need to adjust your budget so you can. While you’re at it, see if there are any government benefits you’re eligible for.
Start paying down your debt
Once you have adjusted your budget to free up some cash, you will need to think about which debts you will pay off first. Some people pay off their smallest debts first; with each ‘quick win’, they can feel motivated to keep going. But paying off debts with the largest interest rate first is smarter mathematically, and will help you pay off your debts faster.
Consider debt consolidation
If you’re struggling to balance your debt repayments, you may want to consider a debt consolidation loan where you bring all your existing debts into one new debt that you pay down regularly. The interest rate on a personal loan is usually lower than it is for a credit card, plus having an end in sight can help you stay motivated as you pay off your debt.
Get financial assistance
Sometimes things happen and you need a bit of help to get back on track. If you bank with us, call us on 13 3095 or ask for financial assistance in NetBank if you’re behind in paying what you owe.
Financial counsellors provide free and independent advice to help you reduce your debts and get out of financial difficulty. You can also call the National Debt Hotline on 1800 007 007 or search for a financial counsellor near you.