Aussie households 'need to know how much debt they have'

Homeowners in Australia need to be aware of how much debt they have as a result of using products such as credit cards, one expert has warned.

Writing for the Australian, Don Stammer, who chairs Praemium Limited and heads FIIG Securities' advisory council, explained that while most families are able to manage the amount they owe "fairly comfortably", they need to keep track of their financial situation.

"Each household should be aware of how much debt it has" he stated, adding that this is "often not the case", as people may know their mortgage repayments but have not factored in other debts, such as car loans, credit cards or taxes owed.

Those that find they are paying an unnecessarily high amount may want to compare credit cards and switch to a more competitive product.

People that do so need to ensure they pay off their bills promptly at the end of every month, director of Anise Consulting Heather Smith recently told the Sydney Morning Herald.

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