Top 5 Tips for Paying Off Your Credit Card Sooner

Often we think of our financial situation in a very one-sided way – we either believe that we aren’t financially comfortable because we are spending too much, or because we are earning too little. Of course, the reality is that a mix of the two factors creates your ‘net worth’ at the end of the day! We can’t tell you how to earn more, but we can broaden our approach to cost-cutting out of the credit card sphere – today we look at some tips for paying off your credit card sooner, by spending smart.

1. Set a goal
   Aim to have a certain portion of your credit card paid off by a certain date. Also aim to have your card remain that way! It’s all too easy to feel good about reaching your goal, and go out and spend money to celebrate … putting you back to square one!
2. Look at your commitments
   We all have bills and commitments that need to be paid every month. Even if the service they pay for is a necessity (for example, the phone, the internet, or electricity), the amount they cost can be very variable. Look at doing things like:
   - Switching your mobile phone to a pre-paid plan
   - Lowering your monthly internet data allowance
   - Being energy-smart to reduce your electricity bill
   - Consider renting instead of owning a home to cut out your water bill, rates and levies, and slash your weekly bill in one fell swoop
   - Selling a car that you need to make payments on, and purchasing a cheaper car outright
3. Look for a cheaper alternative
   The cheapest alternative of all is not to spend money on something in the first place, of course! Even budgeting experts know that isn’t always an option, though. So, look for a cheaper alternative … to your clothes, your food, your electronics, your homewares … everything. 
4. Always put money into savings
   Set up an automatic savings transfer, to be completed the day after your pay goes into the bank. If you don’t see a balance, the temptation to spend the cash is removed. Make your savings amount small, so that you aren’t tempted to cancel it!
5. Check your credit card!
   Major credit card debt and high interest rates are making the banks rich … and they honestly don’t need any more cash! Look at a 0% balance transfer card, like the platinum Citibank credit card, or an ultra-low interest card, like the Bankwest credit card with 10.75%.