Aussies must not 'keep throwing money at debt'
Article by Mozo
Many Australians have built up credit card debt in recent years, but the key to dealing with it is to resist the temptation to simply throw money at the problem.
That is the opinion of David Baum, chief executive of Deanem Collections, who said people need to get to grips with the idea that they owe money and must find a way to repay it.
Once the extent of the problem has been realised, individuals can go about attempting to tackle their debt and reduce it over time.
"What they might do with your credit card is actually close it down and you still have to pay the debt off, but it stops you from building up more debt," Mr Baum explained.
Cutting spending at some point during the process is a must if people are to avoid the debt growing.
Official national statistics recently showed that Australians have built up credit card debt totalling $36 billion.
Have a question about credit cards? Ask the money gurus at Mozo Answers.