Credit card debt is difficult. Ask any financial advisor Perth and you’ll find that this is a type of debt that a lot of people seem to get into with too much ease. It’s easy to ignore. It’s easy to build up. It’s also something that is very difficult to manage.

Now, sometimes, it’s better to tackle your debt before you make investments. This is a good idea for some, a bad idea for others. If you’ve found that debt reduction is your first move, here’s advice.

You’ll want to make more than the minimum payment. In fact, if you can, pay the bill in full every time.

If you only pay the minimum, you’re only paying off interest. You’re not actually putting even a small dent on the amount you actually owe. If you pay in full, you’re cutting out interest and keeping any existing debt from growing. Eventually, you’ll start chipping away until it’s not an issue.

Businesswoman using tablet

If you have multiple debts, look at the interest rates. Which one has the highest rate? Pay those first.

Attacking the highest interest rate first is important. Yes, the other debts will build up in the meantime, but consider one detail. If you’re paying interest no matter what, then it’s better to pay the one that has a lower percentage than a big one.

Talk to your credit card companies. Ask them if they have any options available for you. Some companies might be willing to reduce interest rates if you’ve been loyal.

Another related thing you can try with them is to compile offers. Know the interest terms. Check out what their competition has available. It helps you if they realize you know what’s out there.

Don’t close cards with existing balances. This seems like an easy way out. It isn’t.

Yes, it can get you out of the debt quick. However, it will destroy your credit score. You’re still liable for the debt, send your credit utilization down, and sink your credit score. If you need to close an account, make sure that the company records that it was at your request.

That request should be in writing. It comes in handy.

Be sure to move any debts you have around. Look for long-term plans that let you move to low or no-percent interest rate transfers. This can help you move things around and make payments easier.

Finally, if you can liquidate any assets to lower the debt, make that move.