Managing Your Credit Card Balances

With credit card ownership at 72.1% globally, it is no surprise that so many people are struggling to manage their ongoing debt. While it feels like a continuous cycle which will never end, debt relief from credit cards is achievable, it just requires savvy thinking.


If you own two or more credit cards and are making small monthly payment on each, you are not moving forward. Identify which of your credit card has the highest interest rate and focus on this one first, even if it means reducing your payments to other cards to their minimum monthly amounts.

Move Your Money

Balance transfers are available on individual credit cards and are often a marketing point to attract new customers. Speak with new companies about consolidating your debts into a card which charges the low interest. If there is a new credit card which is available that offers an extremely low consolidation rate, consider obtaining a new card and moving your debts to this card.

On this tip, however, there are two important factors to consider.

  1. You must close your previous credit cards as soon as you have transferred the debt. If you do not, the temptation to continue using them is too great.
  2. Be sure that the low-interest rate is ongoing, or that you can repay the amount in full before the rate ends. Often these cards will have a high-interest rate once the promotion has completed, which could end up costing you more.

Use Your Rewards

Credit cards offer two main types of rewards: bonus points, and balance reductions.

If your credit card offers points, then accumulating your debt has likely resulted in plenty of points. Use these to save on services such as utilities or your visit to your regular hair salon in Oslo. Use the money you would have spent on these items to make an additional payment on your balance.

If your card offers balance reductions through points, this is likely to be your best option as it can immediately decrease the amount of interest you are paying.

There are just three great ways to help you reduce your credit card debt. However, the number one tip is always going to be to stop using your credit card. If you cannot afford an item, don’t buy it. No item you buy will bring you the same amount of joy that comes with debt relief.