© 2016 by PENNY COLLICOAT |  EDGE FP PTY LTD

Authorised Representatives | Apogee Financial Planning | Australian Financial Services Licensee | Registered Office at 105-153 | Miller Street North Sydney NSW 2060

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How to break up with your credit card?

 

Breaking up with someone is difficult and never very pleasant. It's the same with credit card debt. You see, it starts off so shiny and rosy. You have all the best intentions in the world, like when you first get together with a new partner. But some things just don't last, and when credit cards become uncontrollable debt, its time to say goodbye!

 

I'm sure you still remember the first day you got your card in the mail and felt like a grown up. The first time you used it and the thrill it gave you...purchasing something here and there while your bank balance remained the same. So exciting!

 

You start by saying you will pay them off each month. Using it to boost your savings strategy is also part of the plan. So, you begin using your card more and more, soon to realise it's pay day, your credit card is maxed and your bank balance nil. Your interest rate on your credit card can be extremely high and suddenly the relationship has soured.

 

The issue then arises. How to break the cycle? Like any respectful break up, a great amount of thought and planning is required. Do you rip the bandaid off quickly, or take a more measured approach? 

 

Think about what you want to achieve and the best way for it to happen. Whatever way you decide, to pay it off simply means less spending, but you can be smarter about it.

 

Three tips to turn the debt cycle around-

 

1. Leave your credit card at home- it's that simple. Make payments on it and don't spend on it.
 

2. Look at putting a budget in place, work out how much you can save each pay cheque and put it on the credit card, then reduce the balance as you make chunky payments
 

3. Transfer the balance to a $0 interest rate card (deals are often advsertised online with the banks) and pay it off as quickly as possible. DO NOT keep the old card, cancel it!

 

The hardest decision is to actually do something about it, which means you want to change your spending habits and forgoing on some things. Believe it or not, it will pay off.

 

For more information about how we can help you, contact Penny Collicoat today!

 

 

WOMEN with EDGE

Wealth. Surety. Lifestyle. 

contact Penny here

 

Important information and disclaimer

This publication has been prepared by Leigh Stafford, Penny Collicoat, Little Miss Stonnington Pty Ltd (trading as Edge FP) Authorised Representative(s) of Apogee Financial Planning Limited ABN 28 056 426 932, an Australian Financial Services Licensee (“Licensee”), Registered office at 105 –153 Miller St North Sydney NSW 2060 and a member of the National Australia Bank Limited group of companies (“NAB Group”). Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance or other decision. Please seek personal advice prior to acting on this information. Information in this publication is accurate as at the date of writing (July 2015). In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of the NAB Group, nor their employees or directors give any warranty of accuracy, not accept any responsibility for errors or omissions in this document. Case studies in this publication are for illustration purposes only. The investment returns shown in any case studies in this publication are hypothetical examples only and  do not reflect the historical or future returns of any specific financial products. Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent. If any financial products are referred to in this publication, you should consider the relevant Product Disclosure Statement or other disclosure material before making an investment decision in relation to that financial product. Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.

 

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