'Clear credit cards' with stimulus package
Aussies expecting a payout through the government’s stimulus package shouldn’t forget about clearing their credit card debts.
While some Aussies may have already found themselves low-rate credit cards and are happy with the way in which they are paying off their debts, those on higher rates should consider using the stimulus package to at least clear part of their balance, an expert claims.
Financial Design for Life director Chris Browne said that while using all the package to clear the debts might not be the most fun thing to do, clearing part of it is advisable.
He said people should enjoy some of the money but put some to good use too.
"If you do have credit card debt, make sure you get rid of it because it’s a really great way to free up some cashflow," he said.
Other ways to better manage debts on plastic include switching to low-rate credit cards so that interest repayments are cut down.
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