Taking stock of the turmoil

After a week of financial panic on a level not seen since the Great Depression, paying off personal loans and credit cards will play a vital role in staying afloat.

The Daily Telegraph has noted that ditching fixed debts will be increasingly important as unemployment rises and the likelihood of a pay rise wanes.

In order to avoid being caught out by heavy interest rates, the paper urges consumers to shift their debt on to cheap credit cards.

“Try and dump as much debt as you can on these zero per cent cards. Apply for multiple cards from different banks if necessary because one card’s limit may not be high enough,” it suggested.

However, it warned that under no circumstances should these cards be used for additional spending, as doing so is likely to push people further into the red.

In terms of personal loans, news.com.au has reminded consumers that these are most effective for short-term borrowing on items of low value.ADNFCR-1761-ID-18797653-ADNFCR