Making minimum credit card payments 'is not enough'

Although they may face dauntingly large credit cards bills, there are steps that Aussies can take in order to reduce their debts.

Writing in the Business Day section of the Sydney Morning Herald, Helena Keers claims that just making the minimal monthly payments "is not going to do the trick" when it comes to getting to grips with money owed on cards.

However, she states an effective way in which to get out of debt is to opt for a balance transfer card that offers no interest on money transfers for a fixed period of time.

Before taking the plunge with such a credit card though, Ms Keers advises borrowers do their homework.

As the purchase rate on these kinds of cards can be "pretty high", she claims if consumers use them to fund new purchases before paying off their original balance they could find they will be "paying large interest bills on your new purchases".

Furthermore, people were advised against constantly switching credit card providers as this could have a negative impact on a consumer's credit rating.

Indeed, now could be an ideal time for people to get to grips with their credit card debts, after Delia Rickards, senior executive leader for consumer and retail investors for the Australian Securities and Investments Commission, recently reported that now Australia Day is over consumers should assess their financial situation and look to make changes.