Bad debt is a big ‘ol burden for everyone involved. Except the banks, they love that shit.
And why wouldn’t they? The average Australian credit card debt per person is $4,378.45, which translates to $736.46 in interest per year, per person.
That adds up to almost 5.5 billion dollarydoos that the banks are squeezing out of the country, all because you just had to have that dress/those shoes/those pants/that PlayStation 4 without actually being able to afford it.
Well I’m about to wallet-slap you upside your financially ill face with some immense real-talk-life-skillz to get yourself out of that debt pit. Prepare yourself.
Get a balance transfer
This is when you transfer the balance of your credit card onto a different credit card for mad dealz*. These dealz will usually involve an interest free period on the transferred amount so you can pay it off quicker.
The trick here is to not be a desmond and continue racking up debt on your new card. Use the opportunity to get that shit sorted as quickly as you can. If you need to cut up the card to eliminate the temptation, so be it. The plastic is weak, let it perish.
*Dealz are like deals, but cooler by a factor of at least 6.
Live like a peasant until your debt is gone
This is by no means an easy solution, but it’s by far the quickest, particularly when combined with a balance transfer.
Create a budget so tight that even George Costanza would be proud. Make bulk meals with cheap ingredients, walk or ride your bike to work, stick to tap water only. Whatever you can do to cut costs, do it.
As a failsafe for emergencies, don’t transfer the money onto your credit card until you reach your next pay. It will require more willpower, but you’ll have the money there if an emergency or malnutrition visits unexpectedly.
If you like living life on the edge because you’re a regular mad-dog daredevil SOB, smash the CC with your cash when you get paid and live on the budgeted amount. If worse comes to worse, you can always fall back on the credit card.
Earn more money
Not in a Joe Hockey “get a better job, ya bum” way, more like an “Uber and Deliveroo are things now” kinda way.
Remember, this isn’t going to be a long term thing unless you want it to be, so suck it up and use your free time to earn yourself some extra cash.
If you’re a decent driver, hit up some Uber. If you ride a bike like a champ, Deliveroo some Mary’s burgers in exchange for currency. Maybe you write real good and can pick up some freelance work on the side.
Throw that money at your debt with an untamed ferocity.