Get on top of debt! 4 smart ways to pay off your credit card

Having credit card debt isn’t fun. And in the current financial climate, debt may be looking even more unpleasant than it did before. 

While some credit card providers have cut rates or introduced COVID-19 repayment relief packages, the truth is, others have not. 

“During this time it’s important for struggling Aussies to get in touch with their credit card provider to see what COVID-19 relief packages they have on offer, such as financial hardship support,” Mozo Director, Kirsty Lamont said. 

“In saying that, it is also crucial that credit card holders familiarise themselves with smart ways to pay down their debt, so that when the time comes, they are fully equipped to do so.” 

So, with that in mind, here are some savvy ways to stay on top of your credit card debt and kick it to the curb as soon as you can.  

1. Start small to get the ball rolling  

When it comes to paying off your credit card debt and making monthly repayments there are a couple of golden rules to go by. 

Golden rule #1: Always pay at least the minimum amount (plus more, if you can). 

Golden rule #2: Don’t be late on your repayments (or you could be slapped with late payment fees on top of any interest you accrue). 

The truth is, if you’re facing more than just a small handful of debt, it may be unrealistic to knock it off all at once. So, to start off, chipping away at it slowly might be a great way to get you in the groove. 

However, while paying down your smallest debts first may motivate you to keep going, it’s important to keep building on your repayments and let the chips get bigger over time. That way, the amount you are accruing interest on lessens at a faster rate and before you know it, your debt could be far behind you! 

RELATED GUIDE: 9 Steps to Pay Off Credit Card Debt 

2. Say goodbye to multiple credit cards  

What’s worse than having debt on a credit card? Having debt on two credit cards! 

If your wallet is packed to the rafters with two or more credit cards, it could be time to get out the scissors and bid farewell to what you don’t need. 

When it comes to deciding which credit card you should pay off first, it’s a good idea to clear the debt on the card with the highest interest rate before the others. 

For example, if it were between a low rate 12.00% credit card or a platinum 20.00% rewards card, it’d be clever to focus on the rewards card first. That way you’ll ultimately be paying less interest over the time it takes you to pay down each card.

Just bear in mind though, avoid neglecting your other cards as you concentrate on paying down the higher-interest card. Remember to keep making the minimum payment across all of your cards month to month to avoid late fees. 

3. Take control of your spending and cut down your credit limit

The easiest way to accrue more debt on your credit card is to spend more on it, so why not cut out the temptation? 

Get in touch with your credit card provider and ask to minimise your credit limit - that way you won’t be able to spend on the card even if you wanted to. 

4. Why not go interest-free for a while?  

If you feel you aren’t getting a good deal on your current credit card and need a little bit of time to pay down your debt interest-free, a balance transfer offer may be the ticket. 

These cards are designed to help customers pay down their debt by offering a no-interest period of anywhere from six to 26 months. 

The catch here is, any purchases you make on the card during the balance transfer offer will not be interest-free. For these transactions, you will often face the purchase rate or the even higher cash advance rate. So it’s important to lock the balance transfer card away, and just focus on clearing your debt rather than spending.  

RELATED ARTICLE: How a balance transfer could be the savviest way to help your wallet in “iso”

Want to check out some hot balance transfer offers? Check out the table below or jump over to our credit card comparison tool for more options!

Balance Transfer Offers 2020 - last updated February 27, 2021

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
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We've updated the table to show your savings!(how are they calculated?)
  • Apply By May 31, 2021
    Bendigo Bank Low Rate Credit Card

    0% p.a. balance transfer for 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 18 months and then 11.99% p.a. (2.00% balance transfer fee)
    11.99% p.a.
    $45
    -
    Compare
    Details
  • Bankwest Breeze Mastercard

    Enjoy 0% p.a on balance transfers for 26 months (2% BT fee applies) then 10.99% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Mastercard Breeze customers only.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)
    10.99% p.a.
    $49 $0 in the first year
    -
    Compare
    Details
  • St.George Vertigo

    0% p.a. for 24 months on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 24 months and then 21.49% p.a.
    13.99% p.a.
    $55 $0 in the first year
    -
    Compare
    Details
  • Hot DealLimited time balance transfer offer
    Westpac Low Rate

    Enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days and low on-going rate of 13.74% on all purchases.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)
    13.74% p.a.
    $59
    -
    Compare
    Details
  • St.George Amplify Platinum

    Get 0% p.a. for 22 months on balance transfers requested at card application. 1.5% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. Bonus 0% p.a. on purchases for 7 months. Rate then switches to applicable variable purchase rate. Get your first year annual card fee waived for the first year ($99 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)
    0% p.a. for 7 months then 19.74% p.a.
    $99 $0 in the first year
    Amplify Rewards
    Compare
    Details
  • Apply By July 29, 2021
    Citi Rewards

    0% per annum for 30 months on balance transfers. No Annual Fee for the first year then $199 each year after. Complimentary International Travel Insurance.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 30 months and then 22.24% p.a.
    21.49% p.a.
    $149 $49 in the first year
    Citi Rewards Program
    Compare
    Details

^See information about the Mozo Experts Choice Credit Cards Awards

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