Dodging debt demons
Young Australians are becoming increasingly embroiled in a debt crisis which is putting many on the path to insolvency, the Herald Sun has warned.
With credit card overspend and a reliance on low interest personal loans, many Aussies are now finding it difficult to stay out of the red, it claimed, pointing to statistics from the Insolvency Trustee Service showing that 25 to 29-year-olds are most likely to have money owing on credit cards, mobile phones and loans.
“It is affecting young people in jobs as well as students. We are seeing a lot of young people in lots of trouble with debt at the moment,” said financial counsellor Jackie Bramwell.
And for those who are looking to steer clear of a cash catastrophe, Bramwell urges people to be wary of any pay later deal, in addition to ploughing spare cash into high-interest savings accounts to make money work harder.
Elsewhere, an article from news.com.au published at the start of the financial new year insisted that reducing credit card debt should be the first exercise in getting finances back in shape.