Getting on top of your debt

Understand what you owe

The first step is to get a clear picture of your current debt. Having everything in one place can make it easier to plan and prioritise.

Try listing:

• What you owe on each loan or credit card
• The interest rate or fees
• The regular repayment amount
• How long the debt is expected to last

This information gives you a solid starting point and helps you see where your money is going.

Make a repayment plan

Once you’ve got a clear picture of your debts, you can start thinking about how you’d like to pay them down. Focusing on higher-cost debt first can help you reduce the amount of interest you pay overall and pay off your debt sooner.

• Rank your debts from highest to lowest borrowing cost, including interest rates, fees and charges such as late payment fees.
• Continue making at least the minimum repayments on all debts.
• If you’re able to pay more than the minimum, even a small amount, put the extra towards the debt with the highest borrowing cost.

Once that debt is paid off, you can redirect that extra amount to the next one on your list.

How much you’re able to repay will depend on your income, regular expenses and minimum repayment amounts. What matters most is choosing repayments that are affordable and sustainable for you.

Consider a balance transfer

If you think you could pay off your debt within a few months, a credit card balance transfer might be worth considering.

A balance transfer lets you move debt from another bank or store card to a Kiwibank credit card. You'll pay our balance transfer interest rate for a set period, which may be lower than the rate you're currently paying. This can help by:

• Bringing your debt into one place, so it’s easier to see what you owe
• Letting you focus on paying down a single balance
• Making it simpler to set up automatic payments and track your progress
• Potentially reducing the amount of interest you pay while the balance transfer rate applies.

A few things to keep in mind with a balance transfer:

• You won’t get interest‑free days on new purchases while the balance transfer is in place.
• When the balance transfer period ends, the interest rate will return to the standard interest rates.
• It’s worth checking whether you’re likely to repay the full balance before that happens.

After transferring, you’ll also need to close your old card. This can make things simpler and help you stay focused on paying down the debt.