Credit card debt
How can you manage your credit card debt?
If you only make the minimum repayment on your credit card, your balance can take years to clear because most of your payment goes toward interest. This page explains how to reduce your debt faster, including increasing your monthly repayments, switching to a lower‑rate or 0% balance transfer card, avoiding fees and using the CCPC Credit card comparison tool to compare options and plan your repayments.
Key credit card debt repayment tips:
- Increasing your monthly repayments is a good place to start as it will help you reduce the debt faster
- Switching to a lower-interest or 0% balance transfer card can reduce costs
- Avoid late payments and cash withdrawals to minimise fees and interest
- CCPC’s Credit card calculator shows you how long it will take to clear your credit card debt based on your current monthly repayments. You can also compare this with other credit card options to help plan your repayments.
Managing credit card debt
Should you stop using your credit card while repaying debt?
Yes, if you want to clear your debt, you need to stop adding to it. Resist temptation by leaving your card at home.
How much should you repay each month?
Pay off as much as you can each month to reduce your debt faster. If you only make the minimum repayment, it will take much longer to clear your balance.
Can you ask your provider to reduce your interest rate?
Yes, ask your credit card provider if they will consider lowering your interest rate. This reduces the amount of interest added to your balance each month.
Should you switch to a lower-rate credit card?
It could help as the interest rate is lower, but you need to stay strong – don't use the new card for additional spending and, if possible, repay the balance during the interest-free period.
Start by looking for cards offering 0% interest on balance transfers or lower interest rates. Use the CCPC Credit card comparison tool to compare the best offers currently available in the market.
Please be aware that your new provider will assess your credit history, employment status, income and existing debt before approving the switch. If you move your balance to a card with 0% interest for a set period, every cent you pay goes toward reducing your debt. Therefore, take advantage of this to pay off your debt faster.
Should you reduce your credit limit?
Yes, lower your limit to an amount you can comfortably repay each month. This helps prevent you from running up debt you can’t afford.
What happens if you miss a payment or pay late?
You’ll be charged late payment fees and it may affect your credit history. Late payment fees are charged if you don’t pay at least the minimum repayment by the bill due date.
To avoid this:
- Set up a standing order or direct debit for the minimum repayment
- Pay more than the minimum if you can afford it
- Check your provider’s terms – fees vary
Should you choose a credit card with online access?
Yes, this helps you monitor your balance and spending in real time, making it easier to stay on track.
Is it a bad idea to withdraw cash with your credit card?
It can be. You pay a lot for this service, as Interest is usually charged immediately on cash withdrawals – and the rate is often higher than for purchases. You’ll also pay a cash advance fee.
Would a debit or prepaid card be better for me?
Possibly. Consider whether a debit card would suit your long-term needs better. Alternatively, a prepaid card can be used wherever credit cards are accepted – without the risk of running up debt.
