How to Pay Off Credit Card Debt in Australia

By the Aussie Credit Guide editorial team · Reviewed 5 October 2026

Moneysmart reports that Australians owe around $33 billion on credit cards, with almost $18 billion of it accruing interest. If some of that is yours, these are the methods that reduce it.

1. See what you owe

List each card with its balance, interest rate, minimum repayment and due date. The rate is on your statement. This takes ten minutes and decides everything that follows.

2. Stop the balance growing

• Move everyday spending to a debit card while you pay the debt down.
• Remove the card from phone wallets and saved online checkouts.
• Ask the provider to lower your limit to just above the balance. See how credit limits work.

3. Choose an order

Pay the minimum on every card, then put everything extra onto one. Moneysmart describes two ways to choose it:

• Highest interest rate first. This costs the least interest overall.
• Smallest balance first. Clearing a card quickly helps motivate you to keep going.

When a card is cleared, close it and move its repayment to the next one.

4. Raise the repayment

The amount above the minimum does the work. On $3,000 at 19.99% p.a., minimum repayments take 28 years and 10 months and cost about $9,385 in interest; $150 a month takes 2 years and 1 month and costs about $679. See minimum repayments.

Moneysmart suggests an automatic transfer scheduled for just after payday, so the repayment happens before the money is spent.

5. Consider lowering the rate

• Balance transfer. A 0% period means every dollar repaid reduces the debt. It suits people who can clear the balance within the period and won’t add new spending. See our balance transfer comparison.
• Personal loan. A fixed term with a lower rate than the card. See credit card or personal loan.
• A lower-rate card. See our low interest comparison.

Each of these involves a new application, which is recorded on your credit report, and none of them helps if spending on the old card continues.

6. If you can’t meet the repayments

Contact the provider’s hardship team before a payment is missed. Providers must consider a hardship request. See financial hardship.

Free, confidential financial counselling is available from the National Debt Helpline on 1800 007 007. Be cautious of companies that charge to negotiate debts or “fix” credit reports: financial counsellors do this work at no cost.

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