Paying off credit card bills 'is important'

By Mozo ·

Young Aussies have been encouraged to ensure they pay their credit card bills promptly, as failure could adversely affect their credit rating.

A recent study by Veda Advantage found that 18 to 19-year-olds are less likely than the rest of the population to pay their bills in full, reports National Features.

Chris Gration, a spokesperson for the organisation, commented: "Many don't understand the consequences of not paying their bills, which means a good proportion are setting themselves up for problems."

He explained that only 12 per cent of youngsters understand what a credit file is and that a default on a payment will have an impact on this.

Last month, founding director of financial planning firm ipac Paul Clitheroe said in a blog entry that those struggling to pay their credit card bills should get in touch with their lender to renegotiate payments.

He suggested that debt incurred through plastic use should be one of the first Aussies try to pay off.

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