Tips offered for credit card debt

Tuesday 01 September 2009

Article by Mozo

Several experts have offered advice as to how Australians can manage their debt.

An article in news.com.au pointed out that having a step-by-step plan can be beneficial to consumers.

The first thing to tackle is credit card arrears. Kevin Benger, chief executive of credit union Community CPS Australia, explained high interest debts are usually most difficult to control and should be dealt with first.

In this light, people may want to look around to compare low interest credit cards.

When it comes to home loans, Mr Benger said: "You can make a big dent in interest costs if you shorten the length of your home loan. Look at ways to shorten it."

Householders may be able to do this by making fortnightly repayments, or paying some back "off the principal" from time to time.

Consolidation or opting for a debit card, with which people can only spend their own money, were also offered as potential debt solutions.

It was recently claimed that using savings accounts is "sexier" than spending by IBSWorld senior analyst Michael Wilson.

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