Are you feeling anxious about blowing the budget this Christmas? For many Australians, carrying a substantial credit card debt at the end of the year is an all too familiar feeling.
Shoppers know the feeling of pain once they enter the new year and receive their Christmas card statements, reminding them of all their last-minute gift grabs that have cost them big.
The average credit card bill is $2155 and is accruing interest every month, Reserve Bank of Australia figures show.
These tips can help reduce financial stress this Christmas:
- Set up automatic repayments
Set up regular auto-payments to contribute towards paying off your debt each month. Go beyond your repayments if it is within your means; paying off the minimum amount each month could result in spending many years to pay off the entire balance.
- Sign up to e-statements and alerts from banks
It can be easy to lose track of your spending. Signing up to e-statements means you can keep a close eye on exactly where you money is going. Use bank alerts to find out when your repayments are due so you can adjust your budget accordingly.
- Consolidate your debt
If you have multiple cards or loans, a great way to cut down on your interest costs is to consolidate your debt. This makes your debt easier to manage with just one repayment and cuts down on any unnecessary bank fees.
Source: Money Saver HQ