Years ago it was necessary for everyone to learn the skill of saving, as those who could not save, were not able to make a purchase. Today, credit is fast and easy and the common skill of saving is hardly common. It is no longer necessary for any of us to save up in order to make a purchase. Most people in Australia hold several credit cards. In fact Australians hold over 10 million credit cards between them, with the average outstanding debt being over $2,000.

Australian Credit cards offer a number of distinct advantages. There is the opportunity for extended warranty periods on consumer purchases. There is also the reduction in the risk that payment for the product is disputed in the future in the even that the product is unsatisfactory and a refund is sought. Credit cards, when used wisely, can be a very useful tool. Unfortunately, Credit card abuse is common and can result in out-of-control debt escalation.

There are a number of simple techniques that will assist you to reduce your credit card debt:

• (i) If you can, try to pay off more than the monthly amount owed. This simple step can cut down the overall amount that you end up paying to the credit card issuer. This will also mean that you end up paying less interest - a great debt relief.
   
• (ii) Budget, Budget, Budget - if it is not on the list, do not buy it. While at times this technique is quite challenging, you will find that it is very effective at debt elimination.
   
• (iii) Try using Cash for some time until you get your credit card debt under control.
   
• (iv) If you have multiple credit cards, start by paying off the credit card with the smallest balance first. Then add the amount you were paying for that first card onto the monthly payment for your next credit card and so forth. This will mean that you get all of your credit cards paid off while paying the least amount of interest possible.
   
• (v) Debt Consolidation is also a great solution to Credit Card Debt. If you owe money on store cards, credit cards, interest free offers etc., you may be able to consolidate all these into a single low-interest loan which will allow you to pay less each month. You will then have more free money available to apply towards reduction of the home loan principle.