Get out of debt and back in control of your finances with our simple money tips.

Have a plan to pay down your travel debt

If your debt is on a credit card, work out how much extra you can put towards your card and crunch the numbers using our credit card calculator. You will be surprised how fast you can pay it off with small extra repayments over a year, and how much interest you will save.

Work out how you can pay off your card faster.

 Use our credit card calculator

To work out how much you can afford to put towards your debts create a budget using our budget planner. Once you put in all your expenses, see if you can cut back on any unnecessary spending so you can have even more to put towards your debts.

See if you can find some savings.

budget planner

If you need help staying on track and managing your day-to-day spending, try using our TrackMySpend app.

Keep track of cash.

https://www.youtube.com/watch?v=qlC-ISiz7gE

Work out how much time and money you’ll save by making higher repayments on your credit card using our credit card calculator.

Transcript: Take control of your money with the credit card calculator

Paying off more than one credit card

If you have more than one credit card to pay off, pay the card with the highest interest rate first. Remember to continue paying at least the minimum amount on the other outstanding balances too.

Take a look at our page on how to pay off multiple cards credit cards for more tips.

Make your credit card repayments on time

Avoid unnecessary late payments by asking your credit provider to send you SMS or email alerts just before your repayments are due. You can usually set these up online.

You don’t want to add fees to your already high debt bill.

Talk to your lender if you can’t pay

If you’re struggling to make your repayments, don’t just stop making them. This will only prolong the debt pain and will affect your

 credit report.

Contact your lender and let them know you are experiencing financial hardship. Find out how to talk to your credit provider and apply for a hardship variation.

You can also speak to a free financial counsellor if you are struggling with your debts.

Travel debt free on your next trip

Prevention is better than cure. If you follow these holiday savings tips you can avoid debt on your next trip.

Get a holiday savings plan

Work out how much money you need for the holiday and how long it will take you to save that amount. See our saving for a holiday webpage for more details. Paying for your trip with savings rather than credit makes a lot of sense.

Saving early means you can book early too. You can enjoy early-bird discounts by booking your flights and accommodation months in advance.

Go your own way

Don’t follow the crowds. Avoid the peak season. Be a non-conformist and head to the mountains and lakes when everyone else is flocking to the islands and beaches. If you can travel in winter and avoid festive and school holiday periods, you’re off to a great start.

Check your transaction fees

If you’re going overseas, check the transaction fees your bank will charge you on your debit or credit cards before you go. You could be charged a foreign currency conversion fee, an overseas transaction charge or an additional cash advance fee (for credit cards).

Carefully research and compare your options well before you go. Find out more about prepaid cards you can use while travelling overseas.

Avoid debt lag by setting yourself a spending limit and paying for your trip with savings.

Please contact us on |PHONE| we can help you work out your combined financial goals, budget better and develop a plan to help you grow your wealth so that you can achieve your goals.

 

Source : ASIC Moneysmart February 2018 

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://www.moneysmart.gov.au/managing-your-money/managing-debts/how-to-get-out-of-travel-debt

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