Seven hacks to help you pay off your credit card
To pay off your credit card, all you need is a plan. Check out these seven simple hacks to help you deal to your debt.
1. Aim to pay more than the minimum amount
If you can, try and pay more than the minimum payment due amount.
Every bit counts because it will not only reduce the amount you owe, it will also reduce the amount of interest you pay.
2. Use your credit card for emergencies only
Pressing pause on your credit card, and only using it when you really need to, can be a great way to get back on top of things. If you can, stop using your credit card until you’ve paid it off.
If you keep spending on your card while you’re trying to pay it off, you’ll probably pay more in interest and take longer to get debt-free.
Another idea is to only carry your debit card. If you need to buy something, you’re buying it with your own money so you’ll avoid paying credit interest.
3. Lock it in
Add a new item to your trusty budget and call it ‘monthly credit card payment’, ‘debt destroyer’, or whatever works for you. Locking it in to your budget helps you stay on track.
To set the amount, check the rest of your budget and see how much you could pay. The more you can repay regularly, the less interest you’ll be charged and the faster you’ll have your credit card paid off.
If you need help putting a budget together, check out our guide to setting a budget in six easy steps.
4. Make it automatic
Consider setting up a direct debit or automatic payment for your credit card repayments. That way, you can set it to make sure you never miss a repayment and avoid being charged unnecessary fees and interest.
If you're an ANZ customer, you can also set up an alert in ANZ Internet Banking or the goMoney app so you receive a text reminding you when your credit card payment is due.
You can also set up automatic payments for no fee in Internet Banking or goMoney. To set up a direct debit, call us on 0800 658 044.
5. Got savings? Make them work harder
If you have savings, you could consider using some to reduce your credit card balance. Why? Because you’re probably paying more interest on your credit card balance than you’re earning on your savings.
Whether this option is right for you depends on your situation. If you’re thinking of doing this, we recommend you seek independent financial advice.
6. Shifting the balance
Many credit card providers offer balance transfers – a special interest rate for a certain period if you transfer the balance from another provider’s card to one of theirs. This can be a good way to save on interest costs.
Just remember that:
- The interest rate goes back to the standard rate after a certain period
- Any other purchases or cash advances outside of the balance transfer amount incur standard interest rates.
7. Talk to your credit card provider
It’s important to keep up with your credit card repayments to avoid unnecessary additional fees and interest.
Everyone goes through tough times now and then. So if you’re worried about your credit card debt or your ability to make repayments, contact your credit card provider. They may be able to assist with tools, resources or different payment solutions to help relieve any financial stress.
If you’re an ANZ customer having difficulty making your credit card repayments, give us a call on 0800 240 438 to see how we may be able to help.
Important information
The information is current as at August 2020 and may be subject to change.
Information in this article refers to personal credit cards, is general in nature only and does not take into account your personal objectives, financial situation or needs. The information may not reflect how interest and charges are calculated under your credit card conditions of use. Talk to us for financial advice and see our advice statement.
Lending criteria, terms and fees apply to all ANZ credit cards. See Rates, fees and agreements for more information.