Let's be honest—if you're reading this, you're probably staring at credit card statements that make your stomach churn. Maybe it's one card that somehow crept up to its limit. Or perhaps you're juggling three or four, each with their own eye-watering interest rate hovering around that painful 20% mark.
Here's the thing: you're not alone. Recent industry snapshots show the average Australian with credit card debt is carrying balances in the low thousands. And with typical standard rates sitting between 19–21% p.a., that plastic in your wallet is essentially a wealth-destruction machine running in reverse.
But here's what nobody tells you—escaping credit card debt isn't actually that complicated. It's just bloody hard work that requires a plan and some discipline.
This roadmap is for Australians with one or more credit cards carrying a balance who keep asking themselves, "how do I get out of credit card debt?" If you want quick, practical steps, a realistic repayment plan, and to understand when consolidation into a lower-rate personal loan makes sense—you're in the right place.
We'll show you how to stop the debt spiral, pick the best repayment method (snowball vs avalanche—yes, they're real strategies), and compare keeping your cards versus consolidating into a lower-rate personal loan. Plus, I'll explain how tools like WeMoney can help you track multiple cards and actually stick to your plan.
No time for the full article? Here's what you need to do right now:
Picture this: you're carrying $10,000 across a couple of credit cards. Nothing crazy, right? Wrong. At 20% interest, making minimum payments only, you'll be paying that off for roughly 25 years. Twenty-five years. And you'll hand over about $15,000 in interest along the way.
That's a small car. A family holiday to Europe. Your kid's first year of uni. All vanishing into the bank's profit margins because of compound interest working against you.
Recent data from Finder and industry reports paint a sobering picture—Australians are collectively sitting on billions in credit card debt, with average balances that would make your eyes water. And those interest rates? They're not coming down anytime soon.
Think of your credit cards like a leaky boat. Before you can bail water, you need to plug the holes.
First, turn off those sneaky recurring payments—Netflix, Spotify, that gym membership you haven't used since January. Move them to a debit account instead. Yes, it's annoying. Yes, you'll have to update payment details everywhere. But it's the difference between treading water and actually swimming to shore.
If you absolutely need a card for emergencies (and I mean real emergencies, not "these shoes are on sale" emergencies), keep one with the lowest limit possible. The rest? Into the drawer they go. Some people literally freeze their cards in a block of ice. Extreme? Maybe. Effective? Absolutely.
Here's where most people stumble—they never actually add it all up. It's like checking your weight after Christmas; you know it's bad, but you don't want to know how bad.
But knowledge is power. For each card, write down:
Pro tip: Link your accounts to WeMoney and watch all these numbers appear in one dashboard. It's like having X-ray vision for your finances—slightly terrifying but incredibly useful.
Now for the fun part—finding money you didn't know you had. Track your spending for four weeks. Actually track it, not just "think about it." You'll be amazed at what emerges from the financial fog.
That daily coffee? $6 Ă— 20 workdays = $120 monthly. One less takeaway dinner per week? Another $120. Suddenly you've found $240 extra per month without selling a kidney.
And here's the kicker—that extra $240 applied to a $5,000 credit card debt at 20% interest? It cuts your repayment time from infinity (okay, 25+ years on minimums) to about two years. Two. Years.
You've got two main approaches, and they both have ridiculous names that actually make sense:
Pay minimums on all cards, then attack the highest interest rate with everything you've got. It's the most efficient way to minimize total interest paid. Think of it as taking out the enemy's biggest gun first.
Start with the smallest balance, regardless of interest rate. Why? Because humans aren't robots. We need wins. Crushing that first small debt gives you a dopamine hit that propels you toward the next target.
Which is better? Honestly, the one you'll actually stick to. Some people go hybrid—mostly avalanche but allowing themselves one small "snowball win" to stay motivated.
Here's where things get interesting. Those credit cards charging you 19–21%? A personal loan might offer you 10–12%. That's not a small difference—it's potentially thousands of dollars staying in your pocket.
You should seriously consider consolidation when:
Skip consolidation if:
Let's say you're sitting on $10,000 of credit card debt. Here's how the numbers actually shake out over three years:
Keep it on cards at 20% p.a.:
Monthly payment: ~$372
Total repaid: ~$13,384
Interest paid: ~$3,384
Consolidate to a personal loan at 10% p.a.:
Monthly payment: ~$323
Total repaid: ~$11,624
Interest paid: ~$1,624
That's $1,760 saved and $49 less per month. Not exactly pocket change.
But here's the twist—these are example rates. Your actual offers will vary based on your credit score, income, and which way the wind's blowing in the lending market. Always, always run the lender's actual numbers before signing anything.
Shopping for a consolidation loan? Here's what to scrutinize:
These offer 0% or low interest for a promotional period—sometimes up to 26 months. Brilliant if you can pay off the full balance before the honeymoon ends. But watch those transfer fees (usually 1–3%) and the revert rate that kicks in afterward.
Cut spending to the bone and throw every spare cent at the debt. No new loans, no fancy strategies—just raw determination. It works, but it's brutal.
Uber driving, freelance work, selling stuff on Facebook Marketplace—a temporary income boost can accelerate your payoff without touching your current credit arrangements.
Remember when I mentioned WeMoney? Here's why it's genuinely useful for debt crushing:
Feature availability varies, but even the basic tracking is gold for staying accountable.
No shame in this game—sometimes you need backup. If you're genuinely struggling:
Call your bank first. Most have hardship programs offering reduced payments or temporary interest relief. They'd rather work with you than watch you default.
Ring the National Debt Helpline on 1800 007 007. Free, confidential, and staffed by people who've seen it all. Visit ndh.org.au for online resources too.
Use ASIC's MoneySmart tools. Government-backed, no-BS calculators and guides at moneysmart.gov.au.
Learn from others' face-plants:
Q: How long will it take to pay off $5,000 if I can manage $200 monthly?
A: At 20% p.a., you're looking at roughly 3.5–4 years and about $1,200–$1,600 in interest. Bump that payment to $250 and you'll shave off a year. Use ASIC's calculator for exact figures.
Q: Personal loan or balance transfer card—which wins?
A: Depends on your discipline. A 0% balance transfer is golden if you'll definitely pay it off before the promo ends. Personal loans offer fixed payments and a guaranteed end date—safer if you need structure.
Q: My credit score is trash. Now what?
A: First, breathe. Then call a financial counsellor via the National Debt Helpline. Focus on the snowball method to build positive payment history, cut spending ruthlessly, and consider a side income.
Q: Should I close cards after consolidating?
A: Tricky question. Closing them prevents re-use but can affect your credit history. Consider reducing limits to $500 instead—enough for genuine emergencies, not enough for serious damage.
Here's what most financial advice won't tell you: getting out of credit card debt isn't about perfection. It's about progress. Even an extra $50 monthly can shave years off your repayment and save thousands in interest.
The difference between people who escape debt and those who don't? The escapees pick a plan—any plan—and actually start. They track their numbers. They celebrate small wins. And when they stumble (because everyone does), they get back up and keep going.
Your credit cards don't have to own you. Whether you avalanche, snowball, or consolidate your way out, the path to freedom starts with that first extra payment. Make it today.
And if you need help? Those resources aren't just links—they're lifelines. Use them.
Want a personalized repayment plan for your exact situation? Drop your balances and rates in the comments, or grab a spreadsheet template to compare consolidation offers. Because sometimes, seeing your own numbers in black and white is the wake-up call you need.
This information is general in nature and does not take into account your objectives, financial situation or needs. It is not personal financial advice. Consider whether it is appropriate for your circumstances and seek independent advice before making financial decisions.
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