About 20% of Australian credit card owners are in financial stress due to the total debt they carry. Believe it or not people feel that if they don’t have a credit card debt it’s as good as money in the bank. That is the danger!
Forget about the ridiculous interest rates, the interest free period and the bonus points you get as you borrow money. It (the debt) has to be paid off.
Credit cards have always been overused by accident. Sometimes it’s the pressure to keep up with your friends. Other times it’s a simple solution to a short-term problem. But importantly it will hang around until the next short-term problem turns up, as they always do.
20% of Australian cardholders are stressed due to excessive debt. Either don’t get on the merry-go-round or immediately put in place a process of escape. The banks don’t want you to escape, they want you to continue paying 15% 20% 25% interest from now until eternity. You could put your credit cards in the freezer, cut them up or mentally erase your PIN number. None of that matters is you follow the 3 step Surmount process
1. If you have more than one card consolidate. Preferably with a zero interest..
2. Keep the payments up and build a $1000 safety stash.
$1000 might be too much but find a number that works for you
if you can’t trust yourself then organise a direct debit from your pay
3. Be kind to yourself! You some of your safety stash to reward yourself
4. Not a trip to Bali, maybe a meal out and a nice bottle of wine with your favourite co-drinker.
It took you a while to get into debt and it will take you a while to get out that the wonderful thing is you will feel stronger every step of the way. Surmount will identify when you make those payments so expect a nice fluffy email from us.
Get stuck in.