Many people young people find themselves up to their eyes in credit card debt – a holiday, a work wardrobe or moving out of home with the assistance of your first credit card – can start the roll down a slippery slope to credit debt, with serious consequences.
Research* commissioned by Tribeca Financial found nearly nine million Australians admit that their debt issues are a result of their own credit mismanagement and almost two thirds of this group (63% or 5.4 million Aussies) have experienced issues repaying credit debt.
Alarmingly, our research showed half of Australians are letting their credit debt grow each month and two in five experience stress related to their credit debt.
So, what can you do about digging yourself out of debt?
Write down your debts, from smallest to largest.
To make the most impact on your debt, you might choose to pay off the credit card with the highest interest rate first. Paying off the card with the smallest debt first is another smart credit-crushing strategy. As always, keep making those important minimum payments on all your cards but by paying more off on the card with the smallest debt, you’ll pay it off faster and can then work your way up through all your credit cards, one by one.
Unlock cash to pay
Let’s start by thinking about your belongings. Be honest with yourself and do a de-clutter.
By listing goods you no longer need – and that could mean everything from electrical appliances to old clothes, shoes, books, kids’ toys and jewellery – on your favourite online selling platform, such as Gumtree or eBay, there’s a chance for you to make some good money you can use to pay off your debts even faster.
In the words of Marie Kondo, ‘the best way to choose what to keep and what to throw away is to take each item in one’s hand and ask: “Does this spark joy?” If it does, keep it.’
Set up your bank accounts
Structure creates freedom and will help you pay down your debts quickly. By setting up your bank accounts for maximum efficiency and savings motivation, you can keep track of what money should go where – and how to make sure you have the money left over to crush that bad debt. When you set up your bank accounts to minimise unwanted fees and channel your income to cover the fixed expenses and discretionary spending, you have a clearer vision of your total budget and how to make your money work for you.
Join the Great Aussie Credit Crush community
With free access to support, budgeting strategies and credit-crushing motivation at the Great Aussie Credit Crush (GACC) online community, getting your finances under control is within reach. The friendly – and free – support of the GACC community is a smart way to stay on top of credit debt and work out ways to enjoy a less stressful lifestyle.
Packed with strategic tips designed to help crush your debt – fast – and by following it one step at a time, you can make a positive difference to your financial situation. Join the community at greataussiecreditcrush.com.au.
By using these ideas and committing to get yourself out of debt, you’ll have less worries about high-interest rates, levels of financial stress will decrease, and you’ll create new habits to help you say goodbye to bad spending and the debt that comes with them.
*Research was commissioned and conducted by Lonergan Research on behalf of Tribeca Financial in accordance with the ISO 20252 standard. Lonergan Research surveyed 1065 Australians aged 18 and over. Surveys were distributed through Australia including both capital city and non-capital city areas. The survey was conducted online amongst members of a permission-based panel, between 17 and 21 May 2019. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.