Don't bury your head in the sand over credit card debt
Article by Mozo
Too many Aussies are apparently burying their head in the sand when it comes to dealing with their credit card debt.
Recent figures released by the Australian Investments and Securities Commission showed that the country now owes $36 billion on their credit cards and unless people start taking responsibility for their actions, this figure will only grow further.
Delia Rickard of the government's MoneySmart division said that simply paying back the minimum amount each month is not good enough and Aussies should ensure they are settling their balance as swiftly as possible.
Indeed, she noted that once you have managed to square your debt, only use the card for emergency purposes.
The national average debt stands at $4,700 and Ms Rickard asserted that if you only pay the minimum amount each month, it will take you 49 years to clear your arrears – paying $14,600 in interest in the process.
"But if you are able to pay off $250 each month, you'd pay off your debt in two years and save $13,700 in interest," she remarked.
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