Credit Card Debt Help
Credit Card Debt Help is an important financial service, as a lot of people use credit cards for purchases. Credit card companies require you to pay your card in full at the end of the month. If you cannot afford to do that, you will be paying a high interest on your purchases. This can add up over time, leading to dangerous results.
Paying just the minimum monthly balance on your credit card is a slow and expensive way to reduce the debt. If you can't even afford the minimum, then it can cost you further in fees and charges. If you fall behind, ultimately the bank may start legal action to recover money from you.
Can I Get Out Of Credit Card Debt?
It's not easy. But, with credit card debt help, it is possible. There are a number of strategies you can use to take back control and work towards financial freedom.
Work Out a Budget
Budgeting helps keep track of how much debt you still need to pay off as you receive your regular income.
Set Up an Emergency Fund
Allocate $500-$1,000 in a bank account you can use for emergencies while paying off your credit cards. This way you are not tempted to use the money from your credit card again.
Consider Selling Some Items
Look around your house for any items you could sell to quickly save money for your emergency fund. This is also a great way to give items you no longer need a new home.
Earn Some More Money
Could you find some extra work for a few weeks to save up the money you need? When it comes to debt, every little bit helps.
Speak To The Bank
Your bank will likely have mechanisms in place to help you get back on your feet. For example, see if they can offer a lower interest rate on your debt to assist you in paying it off.
Use a Debit Card For Future Purchases
A debit card uses your own money and can be used for online purchases, making it a safer option than a credit card.
How Do Additional Cardholders Affect Credit Card Debt?
Even though you and your partner both have credit cards for the same account, it doesn’t mean the debt is shared. Most credit cards assign a ‘primary’ and ‘secondary’ cardholder, where only the primary cardholder is responsible for the debt, even though both can make purchases. While some Australian banks offer joint credit cards, they are not common.
If both of you have credit cards linked to the account you're trying to pay off, it's essential to treat getting out of debt as a shared goal. Open communication and a joint approach will help you manage the debt together.
How Does Financial Hardship Factor Into Credit Card Debt Help?
If you cannot afford to make any payments and it is impacting your ability to pay for basic living expenses, you can either apply for financial hardship with your bank or contact a financial counsellor for advice.
You can ask to speak to your bank’s internal dispute resolution contact to lodge a complaint. if you are unhappy with their response. If your bank still refuses to resolve your complaint, you can then lodge a complaint with the Australian Financial Complaints Authority (AFCA).
How To Contact a Financial Counsellor
You can speak to a financial counsellor for further advice through the National Debt Helpline at 1800 007 007. This is a free and confidential service.
How To Lodge a Complaint
To lodge a dispute with the Ombudsman, you can visit the Australian Financial Complaints Authority (AFCA) at www.afca.org.au. This is an independent dispute resolution service where a case manager will be appointed to work with you and your bank to seek a suitable outcome.
Can Better Place Australia Help Me With My Credit Card Debt?
Yes. Better Place Australia Free Financial Counselling and Mediation Services are available to people who have money troubles, including those with significant credit card debt. If you live in one of the many government funded areas across Victoria, you can take the first step by enquiring online or requesting an appointment.
You can also read real stories about people with financial troubles and how Better Place Australia financial counsellors mediated for them.
