Deliverance from Debt: Your Credit Card Management Guide

Kill your credit card debt with these 8 tips

Tip: #1: Pay on time

The first tip is obvious for some and not so for others. Drum-roll please…

Always pay your credit card debt on time! Doing this will keep your credit history intact. A bad credit rating means buckles chance of getting a loan, a mortgage or another credit card. The credit reporting system means lenders can see when you’ve missed a payment if you go to apply for another financial product. This is particularly important for people looking to transfer their credit card debt to another card under a balance transfer facility.

Low Balance Transfer Credit Cards

Tip: #2: Pay more than the minimum

If you can, pay more than the minimum payment required each month. Even better, pay the whole thing off each month and then start afresh.

Every little bit extra you can pay above the minimum each month will reduce the cash you have to fork out to cover interest charges down the track - this may mean a few sacrifices to get your debt under control.

If you have a $2,000 debt at just shy of 20% interest p.a. and you only pay the minimum amount each month of 2%, it will take you over forty years to pay back, and you will have paid over $5,000 in interest. However, pay an additional $50 above the minimum, you’ll pay the card off in three years and you will have paid just $500 in interest.

The numbers speak for themselves.

Tip: #3: Introductory offers should also be approached with caution

Whether it’s a balance transfer promotional offer or an introductory offer on purchases, if you can’t pay back the balance in the introductory period, don’t take the offer.

You need to know that the introductory period that you’re looking at is long enough to accommodate your repayment budget. Jumping at a 0% rate, failing to pay off your debt before the period expires, then being clobbered by a high regular rate of interest will be a disaster for your bank balance.

One tip here if you are looking for a balance transfer offer, is to check what the revert rates are if you are unable to repay the debt in time. Some cards revert to the purchase rate, whereas some revert to what is typically a higher cash advance rate. Learn more about which cards revert to their standard purchase rate and which don't.

What rate does my balance transfer revert to?

Long-Term Balance Transfer Credit Cards

Rates last updated November 22nd, 2017
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
St.George Vertigo Platinum - Online Offer
12.74% p.a.
0% p.a. for 24 months
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Platinum card benefits plus 0% p.a. for 24 months on balance transfers (with no BT fee) and $0 annual fee in the first year. Ends 13 December 2017.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
20.74% p.a.
0% p.a. for 18 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Earn up to 60,000 bonus Velocity Points in the first 3 months on eligible spend and enjoy a discounted annual fee of $64 for the first year.
Citi Rewards Platinum Credit Card
20.99% p.a.
0% p.a. for 24 months with 1.5% balance transfer fee
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Receive a long-term BT offer, earn Citi Reward Points and receive complimentary travel insurance.
HSBC Platinum Credit Card
19.99% p.a.
0% p.a. for 22 months with 2% balance transfer fee
$129 p.a.
Earn 1 Reward Point per $1 of eligible spend and receive complimentary travel and purchase protection insurances.
Westpac Low Rate Card - Online Only Balance Transfer Offer
13.49% p.a.
0% p.a. for 24 months with 2% balance transfer fee
$59 p.a.
Take advantage of 0% p.a. for 24 months on balance transfers with a 2% balance transfer fee when you apply online by 31 January 2018.
Bankwest Breeze Classic Mastercard
0% p.a. for 13 months (reverts to 12.99% p.a.)
0% p.a. for 13 months with 2% balance transfer fee
$79 p.a.
Receive 0% interest offers on purchases & balance transfers, up to 55 days interest-free on purchases and free emergency card replacement.
Woolworths Everyday Platinum Credit Card
19.99% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
Receive a $50 eGift Card when you apply by 31 January 2018 and make an eligible purchase by 28 February 2018.
St.George Vertigo Visa - Online Offer
13.24% p.a.
0% p.a. for 18 months
$0 p.a. annual fee for the first year ($55 p.a. thereafter)
Take advantage of 0% p.a. for 18 months on balance transfers (with no BT fee). Plus, $0 annual fee in the first year. Ends 13 December 2017.
NAB Premium Card
19.74% p.a.
0% p.a. for 20 months with 2% balance transfer fee
$90 p.a.
Offers 7 complimentary insurance covers, access to a 24/7 concierge service and special offers through Visa Entertainment.
ANZ Platinum Credit Card - Exclusive Offer
0% p.a. for 3 months (reverts to 19.74% p.a.)
0% p.a. for 12 months
$0 p.a. annual fee for the first year ($87 p.a. thereafter)
Exclusive to finder, receive 0% p.a. interest on purchases for 3 months and 0% p.a. on balance transfers for 12 months with no balance transfer fee.
Bankwest Breeze Platinum Mastercard
0% p.a. for 13 months (reverts to 12.99% p.a.)
0% p.a. for 13 months with 2% balance transfer fee
$99 p.a.
Receive complimentary international travel insurance, extended warranty cover and 0% foreign transaction fees.
Virgin Money Low Rate Credit Card
11.99% p.a.
0% p.a. for 14 months
$49 p.a.
Receive a discounted annual fee, $100 cashback when you meet the spend requirement and up to 44 days interest-free on purchases.
Qantas Premier Platinum
19.99% p.a.
0% p.a. for 15 months
$149 p.a. annual fee for the first year ($299 p.a. thereafter)
Fly further with 75,000 bonus Qantas points, up to 2 Qantas Points per $1 spent and 2 yearly complimentary Qantas Club lounge invitations.
NAB Low Fee Card
19.74% p.a.
0% p.a. for 16 months with 2% balance transfer fee
$30 p.a.
Receive complimentary purchase protection insurance, special offers from Visa Entertainment and up to 44 days interest-free on purchases.
Qantas American Express Ultimate Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$450 p.a.
Take advantage of a high Qantas Points earn rate and two American Express Airport Lounge entries each calendar year.
Citi Signature Credit Card
20.99% p.a.
0% p.a. for 15 months with 1% balance transfer fee
$199 p.a. annual fee for the first year ($395 p.a. thereafter)
Earn from 1 Point per $1 spent on selected purchases and receive a complimentary Priority Pass membership with two airport lounge visits per year.

Compare up to 4 providers

Tip: #4: Haggle with your provider

Competition is fierce among credit card providers. They are always keen to keep their customers on board. You can ask your lender for an interest rate review. What’s the worst that can happen - they say, ‘no’? Your provide is all too aware of the promotional offers they give new customers, and the offers other banks can provide to you if you jump ship. They’re not going to see you walk away for the sake of a slight adjustment in your interest rate.

Tip: #5: Limit yourself

Credit limit increase invitations are something you have to agree to receive from the bank. But who’s ever heard of a credit limit decrease invitation? No one, that’s who. That’s because they don’t exist.

Your bank wants to see you continue to use the card, that’s because most of us are debt revolvers - carrying a balance from month to month. This is where the lender makes their money. Why not lower your credit limit as you pay your card off? This will stop you from spending the money you’ve paid off the card.

Just remember, each time you apply for a credit limit increase, it gets recorded on your credit file.

Tip: #6: Use cash whenever possible

Cash is king! Try to use cash where you can. Using cash makes it easier to stay out of debt. Of course, this may not be practical all the time, especially since buying a car with cash is likely to earn you a visit from the drug squad. Whether you're using cash or a debit card (which is really just electronic cash), it's cash is a great way to only spend what you have.

Rates last updated November 22nd, 2017
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
St.George Vertigo Platinum - Online Offer
12.74% p.a.
0% p.a. for 24 months
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Platinum card benefits plus 0% p.a. for 24 months on balance transfers (with no BT fee) and $0 annual fee in the first year. Ends 13 December 2017.
NAB Premium Card
19.74% p.a.
0% p.a. for 20 months with 2% balance transfer fee
$90 p.a.
Take advantage of a 0% p.a. for 20 months on balance transfers. Plus, access to a 24/7 concierge service.
Qantas Premier Platinum
19.99% p.a.
0% p.a. for 15 months
$149 p.a. annual fee for the first year ($299 p.a. thereafter)
Fly further with 75,000 bonus Qantas points, up to 2 Qantas Points per $1 spent and 2 yearly complimentary Qantas Club lounge invitations.

Compare up to 4 providers

Tip: #7: If you have a debt on your credit card, make sure it's a low rate

Always check to understand what interest rate your credit card offers. Not all credit cards have the same rate and the variance is quite large. Check out some of the low rate cards in market at the moment.

Low Interest Rate Credit Cards

Tip: #8: Ask about hidden charges

We’re all aware of credit card surcharges, the extra fees that comes with buying a flight online, for example, can make you cringe. In some cases it can be beneficial to use an escrow service, like paypal, to pay for goods or services that attract a credit card surcharge.

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Frequently Asked Questions

Got any extra tips? Let us know how you deal with credit card debt.
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Read more on this topic

Qantas Premier Platinum
Qantas Premier Platinum

Interest rate

19.99

Annual fee

299
St.George Vertigo Platinum - Online Offer
St.George Vertigo Platinum - Online Offer

Interest rate

12.74

Annual fee

99
Bankwest Breeze Classic Mastercard
Bankwest Breeze Classic Mastercard

Interest rate

12.99

Annual fee

79

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    sunnyApril 10, 2013

    how do credit cards work

Credit Cards Comparison

Rates last updated November 22nd, 2017
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
St.George Vertigo Platinum - Online Offer
12.74% p.a.
0% p.a. for 24 months
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Offers complimentary travel insurance, complimentary purchase insurance and access to a 24/7 personal concierge service.
Qantas Premier Platinum
19.99% p.a.
0% p.a. for 15 months
$149 p.a. annual fee for the first year ($299 p.a. thereafter)
Fly faster with up to 2 Qantas Points per $1 spent, receive 2 yearly complimentary Qantas Club lounge invitations, plus, included travel insurance.
Woolworths Everyday Platinum Credit Card
19.99% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
Receive a $50 eGift Card when you apply by 31 January 2018 and make an eligible purchase by 28 February 2018.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
20.74% p.a.
0% p.a. for 18 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Earn up to 60,000 bonus Velocity Points in the first 3 months on eligible spend and enjoy a discounted annual fee of $64 for the first year.

Compare up to 4 providers

* The credit card offers compared on this page are chosen from a range of credit cards finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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