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The Effects of Credit Card Debt

Posted by Lanyana Financial Group on Mar 24, 2012 1:35:00 PM

With more than 15 million credit cards in Australia, Aussies have racked up an impressive $50 billion credit card debt. The average balance owing on each card is $3,333. If you own one or more credit cards, you would know all too well the long term commitment you will need to make to pay that debt down.

Credit Card Debt is one of the most problematic debts you can have because it is easy to accumulate and hard to pay down. Thankfully, there are some things you can do to fast track paying off your credit card debt.

Why is Credit Card Debt So Hard to Pay Off?

Credit cards are too good to be true. They allow you to purchase something you can't afford and pay it off over time. And in most cases the minimum repayments are so affordable you won't even miss $50 a month. But that's where you are wrong.

The minimum repayments on your credit card are usually only enough to cover the interest your card is accruing. Which means the balance on your card is increasing faster than what you can pay off. In fact, recent RBA figures show people who make a purchase on their credit card in 2013 will still be paying it off in 2037.

Getting Out of Debt, Fast

If you don't want to hang on to your credit card debt longer than your mortgage, there are some things you can do to legally eliminate credit card debt. The first, and easiest way to get rid of your credit card debt is to consolidate it. If that doesn't work, you can always look at a Debt Agreement or Bankruptcy. You might want to do the card credit debt settlement yourself but it is always advisable to have a professional to back you up.

Debt Agreements

A Debt Agreement is when you renegotiate the terms on the debts you owe to your creditors and come up with a new repayment arrangement. If you have several credit cards that have all maxed limits and you are struggling to make even the minimum repayments on each, a Debt Agreement is one of the best Credit Card Debt Solutions for you. A Lanyana Financial Group Case manager will assess your situation, and if he feels a Debt Agreement is right for you, he will set to work on negotiations with your creditors. He can reduce the overall debt you owe and pause your interest and charges to help you repay what you owe without being hassled and hounded by debt collectors. He can even point out to you the law regarding credit card debt.

If You Have Credit Card Debt, Lanyana Financial Group Can Help

Credit card debt can easily spiral out of control. If you need help getting your repayments back on track, the best thing you can do is reach out and ask. Lanyana Financial Group Case Managers deal with stressful debt situations every day and have the knowledge and experience to know exactly what to do.

For help with credit card debt or for more information, pick up the phone and Talk to an Aussie Who Cares. Contact Lanyana Financial Group today.

First published on Debt Rescue.

Topics: Debt Relief

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