'Pay more than the minimum' on credit card transactions

Overpaying on credit card repayments and taking advantage of interest-free periods could be the key to managing debt for many Aussies.

The Sydney Morning Herald advises consumers to pay back high-interest debts ahead of others, to reduce the amount of interest that they accumulate.

Interest-free periods on credit cards could be one area that allows Aussies to escape interest completely for a set length of time.

However, those with outstanding credit card debts are also told of the importance of exceeding minimum repayments wherever possible.

"Avoid paying the minimum on your credit card - it's a very costly trap that ties you down for years," the article explains.

The Sydney Morning Herald has noted a growing number of distressed homeowners facing near-unmanageable debts.

Repossession orders increased in volume in January, the publication explains, following an earlier drop in December figures.

In partnership with this trend, the Credit Ombudsman Service has seen queries relating to hardship rise from around five per cent of the complaints it receives to around 20 per cent.