Getting on top of your credit card debt can help keep your costs down as rates rise.

How to manage credit card debt with rate rises

Getting on top of your credit card debt can help keep your costs down as rates rise.

Shelby Waugh
Shelby Waugh 30 Sep 2022 ・ 2 min read

Changing interest rates and increasing budget pressures are leading people to rethink their cost of living and may have you reaching for your credit card more often.

Here are a few simple tips to help you manage your credit card debt.

Budget for the little things

Rewards credit cards can be tempting to use for everyday spends – it can be a great way to enjoy the benefits. However, those small purchases can quickly add up and become harder to pay off.

Instead, try using a simple budgeting tool to help plan for smaller expenses. By sticking to a weekly budget this should help avoid overspending.

Start small

If you have more than one credit card, tackling any small debts first can sometimes make a big task feel much simpler.

You can then focus on putting any additional savings into paying off a larger debt with a high interest rate.

Consolidate your debts

Multiple debts can get confusing. If you have debt from a few different sources, you can lose track very quickly. This is where debt consolidation may help.

Rolling multiple debts into one can not only simplify your repayments but may even reduce the overall interest you have to pay. One repayment and one interest rate give you a clear path to follow to a debt-free future.

Ask for help

Remember you’re never alone when it comes to managing debt. A Liberty Adviser can help find options to suit your circumstances and offer a better way to tackle your repayments.

Taking the first step towards conquering your credit cards can be daunting, but it can put you on the road to a better financial future.

Shelby Waugh
Shelby Waugh Author
Shelby Waugh is a financial writer at Liberty, with a passion for social justice and improving financial literacy. She enjoys going to the gym, watching movies with her cat, and is dedicated to finding the best doughnuts in Melbourne. Shelby has a Bachelor of Journalism and Marketing from the Queensland University of Technology.