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My Credit Card is Maxed Out – What Can I Do?

A maxed out credit card makes life more difficult and stressful. Therefore you need to figure out a plan on how to pay it off. We are going to discuss how to develop a plan and help with your maxed out credit card.

Stop Spending

The first thing you need to do is to stop spending! This is very important so you don™t keep adding to your debt. Don™t buy unnecessary items. Take you credit cards out of your wallet so you™re not tempted to pull it out at the store.

Another way to protect yourself from using your credit card is cut it up and put it in some water and freeze it. Either way you won™t be able to use it to purchase anything quickly. If you freeze it, then you will have to wait for it to de-thaw. During that time process, you should really think whether you need that item.

Create a Plan/Budget

After you stop spending on unnecessary items, sit down and create a plan and budget. Write down all your expenses and sort them by fixed expenses and variable expenses. You know your fixed expenses are things such as mortgage or rent, car payments, utilities, etc. Then document all of your variable expenses such as gas, groceries, restaurants, etc.

Next you need to take your income and budget it out for each of these expenses. Now that you have a budget created, see if you have any money left or if you have over budgeted your income.

If you have extra money, then all of that should be put towards either creating a savings account or paying off your credit cards. It™s important to create a savings account, if you already don™t have one. This extra money will help you if something unplanned for develops. It may seem difficult to put money into savings while you still have a lot of credit card debt but it™s important.

Take a small amount of what is left from your budget and place it in a savings account. The rest of it should be used to pay off your credit cards.

If you have over-budgeted your income, then you need to look carefully at each of your expenses and see where you can cut back. This is important to do, whether you have over-budgeted yourself or not. Can you stop eating out three times a week and eat out once a week instead?

What about taking your lunch to work, so you™re not buying lunch every day? You can also use coupons for your groceries so you don™t spend as much. Maybe you need to cut back on shopping for clothes or electronics. These are just a few examples of ways you can cut back. You need to cut back to where you can pay all your fixed and variable expenses and then have some left over to pay off credit cards and put into your savings account.

Balance Transfer Offers

Rates last updated June 25th, 2017
Name Product Product Description Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Exclusive Offer
Earn 2 Velocity Points on top of the standard earn rate per $1 spent in the first 3 months, plus a $129 Virgin Australia Gift Voucher each year.
20.74% p.a.
0% p.a. for 18 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
HSBC Platinum Credit Card
Earn 1 Reward Point per $1 of eligible spend and receive complimentary travel and purchase protection insurances.
19.99% p.a.
0% p.a. for 22 months with 2% balance transfer fee
$99 p.a.
ANZ Platinum Credit Card - Exclusive Offer
Receive a low introductory offer of 0% p.a. on purchases for 3 months and 0% p.a. on balance transfers for 12 months.
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)
St.George Vertigo Visa
Receive up to 55 days interest-free on purchases and the ability to make contactless payments with Visa payWave technology.
13.24% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($55 p.a. thereafter)
HSBC Low Rate Credit Card
Receive up to 55 days interest-free on purchases. Also enjoy exclusive offers with the home&Away Privilege Program.
13.25% p.a.
0% p.a. for 15 months with 2% balance transfer fee
$55 p.a.
NAB Low Rate Credit Card
Receive up to 55 days interest-free on purchases, special offers from Visa Entertainment and Tap and Pay capabilities.
13.99% p.a.
0% p.a. for 16 months with 2% balance transfer fee
$59 p.a.
Citi Rewards Platinum Credit Card
A long-term balance transfer offer with the Citi Rewards Platinum Card. Earn extra points on eligible international spend, plus complimentary travel insurance.
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)
NAB Premium Card
Benefit from premium credit card advantages including travel insurance, Platinum Concierge Service plus 0% p.a. for 20 months on balance transfers.
19.74% p.a.
0% p.a. for 20 months with 2% balance transfer fee
$90 p.a.
American Express Essential®  Credit Card
Get Smartphone Screen Insurance of up to $500 when you pay for your phone or contract with your Essential Credit Card.
14.99% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$0 p.a.
St.George Vertigo Platinum
Offers complimentary travel insurance, complimentary purchase insurance and access to a 24/7 personal concierge service.
12.74% p.a.
0% p.a. for 20 months
$99 p.a.
ANZ Low Rate Platinum
Enjoy platinum benefits with exclusive discounts, complimentary travel and purchase insurances and a 24/7 personal concierge.
11.49% p.a.
0% p.a. for 16 months with 2% balance transfer fee
$99 p.a.
NAB Low Fee Card
Receive complimentary purchase protection insurance, special offers from Visa Entertainment and up to 44 days interest-free on purchases.
19.74% p.a.
0% p.a. for 16 months with 2% balance transfer fee
$30 p.a.
NAB Velocity Rewards Premium Card
Offers up to 1 Velocity point per $1 on purchases, combined with complimentary insurance covers and a concierge service.
19.99% p.a.
0% p.a. for 6 months
$150 p.a.
NAB Velocity Rewards Card
This dual Amex and Visa card offers up to 0.75 Velocity Points per $1 spent on eligible purchases and special Visa Entertainment offers.
19.99% p.a.
0% p.a. for 6 months
$95 p.a.
NAB Qantas Rewards Card
A dual Amex and Visa card that allows you to earn up to 0.75 Qantas Points per $1 spent, plus complimentary purchase protection insurance.
19.99% p.a.
0% p.a. for 6 months
$95 p.a.
NAB Rewards Classic Card
Earn 0.75 NAB Rewards Points per $1 spent and receive complimentary purchase protection insurance.
19.99% p.a.
0% p.a. for 6 months
$95 p.a.
NAB Rewards Platinum Card
Collect 50,000 bonus points when you spend $2,500 on everyday purchases within 60 days of account opening.
19.99% p.a.
0% p.a. for 6 months
$195 p.a.
Woolworths Everyday Platinum Credit Card
Receive a $100 eGift Card when you apply by 30 June 2017 and make an eligible purchase by 31 July 2017.
19.99% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($49 p.a. thereafter)

Compare up to 4 providers

Perform a balance transfer to a new credit card

If you have a high interest rate, it is sometimes hard to pay more than the minimum balance. Look to see if there is another card with a lower interest rate. Once you find a credit card with a lower interest rate, see if that credit card company will allow you to transfer your balance. Sometimes there will be promotional rates which only last for a certain amount of time and then are raised to a much higher interest rate. Watch out for these and try to pay it off before the promotion ends.

While having a maxed out credit card is no fun, it is possible to get out debt. But it™s important that you start immediately by not spending any more money and creating a plan and budget. These two things are essential in your quest to pay off your debt. You can pay off your debt, sometimes it just takes time, but it is possible.

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Related Posts

American Express Velocity Platinum Card
American Express Velocity Platinum Card

Interest rate

20.74

Annual fee

375
ANZ Platinum Credit Card - Exclusive Offer
ANZ Platinum Credit Card - Exclusive Offer

Interest rate

19.74

Annual fee

87
St.George Vertigo Platinum
St.George Vertigo Platinum

Interest rate

12.74

Annual fee

99

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