Published 23 Sep 2025 by Cheryl Hayford
Learn how to get out of credit card debt in Australia with proven strategies to pay off credit card balances, consolidate credit card debt, and stay debt free.
According to Finder, the average credit card balance in Australia is $3,443, which makes credit cards one of the most expensive forms of borrowing. With interest rates hovering around 20%, even small balances can balloon quickly if you only make minimum monthly payments. Add in annual fees, interest charges, and balance transfer fees, and the true cost of debt becomes clear. So, how do you pay off credit card debt and stay debt-free? Let’s walk through practical steps, real client success stories, and expert debt management tips from MyBudget.
Did you know? Most of MyBudget’s clients pay off 90% of their unsecured debt in just over three years.
When you only make the minimum payment on your credit card, most of your money goes towards interest costs instead of reducing the balance. That’s why paying off credit card debt can feel like running on a treadmill, exhausting, with little progress. Add in cost-of-living pressures, multiple credit card providers, and different repayment schedules, and it’s no surprise many Aussies are struggling with their financial situation.
But the cycle can be broken. With a clear debt management plan and the right support, you can pay off credit card debt faster and start building savings instead.
Here’s a simple overview of the 6 steps to pay off credit card debt. For a more detailed roadmap, download our free ebook: 6 steps to eliminate credit card debt. Inside you’ll find templates, strategies, and expert tips to keep you on track and motivated.
Write down all your credit cards, store cards, buy now pay later accounts, and personal loans. Include the outstanding balance, the interest rate ranges, the due date, and any overdue utility bills. Seeing the full picture is the first step towards taking control of your financial situation.
If you’re falling behind, don’t avoid the calls, pick up the phone. According to AFSA, under Australian law, lenders must consider hardship requests. Here’s what you can ask for:
These conversations might feel tough, but small wins can save you hundreds (sometimes thousands) over time.
Just like there are many ways to get into debt, there are also proven strategies to get out. Choosing the right debt repayment method can save you money and keep you motivated:
Whichever approach you choose, consistency is key. Automatic payments can help you stick to your repayment schedules, reduce missed payments, and steadily improve your credit score and credit report.
Juggling multiple credit cards, loans and other debts can be confusing and stressful. That’s why one of your aims should be to simplify your finances. You can use our Personal Loan Calculator to see the longer-term effects of juggling multiple interest rates and repayment timelines across different cards and loans. There are different ways to do this, depending on your situation and goals. At MyBudget, we offer:
The majority of MyBudget clients pay off 90% of their unsecured loans in just over three years.
A realistic budget is your roadmap to paying off credit card debt. It shows where your money goes each month and what you can redirect towards debt repayments. MyBudget’s free Personal Budget Template can help, or you can book a session with our team to have one designed for you. Using budgeting tools and a budget planner can help you identify money saving tips and improve your debt-to-income ratio.
Paying off credit card debt can feel overwhelming, but you don’t have to do it alone. Expert support can make the process faster and less stressful. MyBudget’s team works with credit card providers on your behalf, creates a debt management plan that fits your life, and helps you build long-term financial stability. We also offer guidance around credit counselling, credit repair, and financial wellbeing resources.
Aaron and Jake were juggling six credit cards, mounting interest charges, and constant calls from creditors. After years of making minimum monthly payments, their debt kept growing. They were stressed, exhausted, and close to bankruptcy.
That’s when they joined MyBudget. Together, we built a realistic budget, negotiated with their creditors, and created a repayment plan using the snowball method.
In just two years, Aaron and Jake paid off $30,000 in credit card debt and closed half of their accounts. Today, they’re saving for a home loan deposit and planning holidays without relying on credit cards.
For the first time, we’re planning holidays without even thinking about using a credit card. We now see the value in saving.
Jake , MyBudget Client
Their story shows that paying off credit card debt is possible, with the right plan and support.
Often, the hardest part of paying off credit card debt isn’t the maths, it’s the habits. Distinguishing between wants and needs, and making mindful spending choices, can prevent you from sliding back into debt. Check out Tammy Barton’s blog on why a positive money mindset can be your greatest financial asset, and the secret weapon to getting out of credit card debt for good.
Paying off credit card debt can feel overwhelming, but MyBudget can help you negotiate with creditors, consolidate credit card debt, create a debt management plan that reduces your overall balance, and set up a money saving plan for your future. Whether you’re dealing with unsecured loans, buy now pay later balances, or need mortgage refinancing options, we can help you explore the best debt relief solutions for your financial situation.
We’ve already helped over 130,000 Australians pay off debt and live life free from money worries, and we can help you too.
Book an appointment with one of our money experts now, or call us directly on 1300 300 922. _Imagine_ where you could be, 12-months from now.
This article has been prepared for information purposes only, and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this article you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
Imagine where your finances could be 12-months from now.
This page provides general information only. It does not take your personal circumstances into account and is not personal financial advice. For the scope and licensing of a particular service, check the service provider's current disclosures or contact MyBudget.
Free, independent and confidential financial counselling is available from the National Debt Helpline on 1800 007 007. MyBudget is not a registered debt agreement administrator; where a Part 9 debt agreement appears suitable, MyBudget can refer you to its sister company MyDebtSolutions, which is a registered administrator.
To talk through your own situation, call MyBudget on 1300 300 922 for a free, confidential, no-obligation appointment.