Do your best to steer clear of debt

With the cost of living in Australia rising all the time, staying out of debt may be easier said than done for many people.

The government recently urged Aussies not to live beyond their means, as official figures showed the country has racked up a collective credit card debt of $36 billion.

While credit cards can be handy in emergencies, it is not wise to use them frivolously, as it is easy to completely lose control over your spending.

Bosses at Prushka Fast Debt Recovery have suggested that sitting on debts is a bad move if you are hoping to maintain a clean credit rating.

Speaking to News Limited, chief executive of the organisation Roger Mendelson said there are more than two million Aussies on the firm's books and too many people are burying their heads in the sand rather than dealing with their arrears.

"My advice is if you can't pay, communicate by phone quickly and be upfront," he was quoted as saying.

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