Aussies 'should take the time to analyse their debt'

Friday 13 May 2011

Those using credit cards to make regular purchases should take the time to look at the money they owe and formulate a plan to pay off their debts, it has been suggested.

Analysing debt 'is important'

In his ipac blog, founding director of the financial planning firm Paul Clitheroe noted that some kinds of debt are necessary, for example those incurred when purchasing cars.

However, he asserted that a sound financial strategy is to pay these off as soon as possible.

For those who use their credit cards regularly, he advised reducing the amount owed quickly and suggested getting in touch with lenders to renegotiate repayments if there are any problems.

"At times like these, when the rate outlook is uncertain, it pays to remember that not all debt is bad. The trick is to manage your debt wisely," he stated.

His comments echo those of Praemium Limited chairman Don Stammer, who recently stated in a piece for the Australian that households with credit cards and home loans should examine their debts and prioritise where they need to concentrate their repayment efforts.

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