Wipe the debt slate clean with these tips in the new year

By Jack Dona · · 2 min read
Fact Checked
A smiling millennial couple with a smartphone sit in a sunny park, excited to have paid off their debt

If your New Year’s resolution involves more financial freedom, then paying off your debts is an excellent place to start. After all, we only want to take the lessons we’ve learnt into the new year, not our credit card balances.

Here are a few debt-busting tips you can use to wipe the slate clean in 2025.

Avoid late payments 

Late credit card repayments can result in you being charged extra interest and late fees.

To help yourself avoid late payments (that can damage your credit score), consider setting up a direct debit payment or automatic bank transfer each month. 

Pay back more than the minimum 

In an ideal world, fully repaying your credit card bill is the best way to go about avoiding credit card debt. But, that’s not always possible. 

If you can afford to pay more than the minimum repayment amount on your credit card, you may be able to slow down the build-up of your debt and get one step closer to clearing it.

Reduce your credit limit 

If you’re prone to overspending on your credit card, you can ask your provider to reduce your credit limit. You can do this over the phone, online, or by visiting a branch.

Budget your spending 

Creating a budget that tracks your income and expenses can help you pin-point where your spending habits may be getting you into trouble. 

It can be useful to categorise your expenses into needs (what you can’t do without) and wants (what you can do without, at least temporarily). 

See if you can find ways to reduce the cost of your needs, if possible, and cut out as many wants as necessary. This could free up some cash to pay off more of your credit card debt.  

Consider a balance transfer credit card 

A balance transfer credit card lets you roll over your existing credit card debts to a new card, often with a 0% interest rate (or very low rate) on your balance, for a limited time. After the balance transfer period ends, the interest rate swaps over to a high interest rate on unpaid balances. 

This type of credit card can provide you with an opportunity to bust your debts, but it doesn’t come without risks. So, make sure you understand the pros and cons of balance transfer credit cards.

Check out the latest balance transfer offers on Mozo below!