Practical steps to tackle mounting credit-card debt and regain financial control

Whitney Restall’s experience of repeatedly maxing out her first credit card after high school reflects a common pattern, as credit-card debt was the third most frequent issue raised with the National Debt Helpline last financial year. Vicki Staff advises creating a simple budget by reviewing bank statements to understand true living costs, while associate professor Kirsten MacDonald urges scrutiny of spending to separate wants from needs.

Those not qualifying for formal hardship can still seek lower interest rates through balance transfers or personal loans, though they must watch for fees and promotional terms. Debt consolidation, including merging credit cards with other loans or a mortgage, may reduce monthly payments but could extend the repayment period. Finally, cutting up cards, lowering limits, or negotiating repayment holidays with banks—and escalating complaints to the Australian Financial Complaints Authority if needed—are recommended strategies.