Tips For Managing Credit Card Debt From 4 Pillars In Victoria

Debt can come in many forms and from many different types of financial issues and setbacks. Some things, like the loss of a job or a medical emergency, can be financially devastating and are single issues that can impact even very well to do families in the Victoria area.

In many cases, debt is not caused by a single issue. For a great many individuals and couples in Victoria, debt creeps up, often through overuse of credit cards. At 4 Pillars, debt consultants can work with individuals and couples to develop a strategy to pay off credit card debt and to prevent misuse of the cards in the future.

To help manage and use credit cards effectively and to your advantage, the team at 4 Pillars offers the following practical suggestions:

• Limit the number of cards you have – the more cards you have, the more you are likely to rationalise making purchases on the cards, or spreading out the debt through the different cards you use. This can lead to minimum monthly payments that increase over time, and excessive interest paid over the repayment of the cards.
• Check interest rates – choose credit cards with the lowest possible interest rate. Carefully read the fine print as some cards offer low introductory interest rates that dramatically increase after the initial period is over.
• Pay off the balance monthly – the best way to avoid credit card debt is to avoid carrying a balance on the cards. This eliminates paying interest, which is a major factor in mounting credit card balances.

Talking to a 4 Pillars debt consultant can be very helpful in effectively managing your credit cards now as well as in the future.