Spending 'more fun' than saving

Mozo

Monday 18 May 2009

Spending ‘more fun’ than saving

Part of the country’s problem with rising debts boils down to the fact that spending is usually more fun than saving, one expert has claimed.

One of the biggest revelations to come out of this year’s budget is that the government is taking on unprecedented debts to try to steer the country through the downturn, Paul Clitheroe has commented.

However, writing for the Daily, he explained that the huge debts racked up by Rudd should come as no surprise, as on the personal level, Australians have been growing more cosy with debt since the 1970s.

With many people using credit cards and personal loans to buy things they couldn’t otherwise afford, Clitheroe points out that many people simply get more out of spending than they do by ploughing money into a savings account.

However, he warned: "Using debt for lifestyle purchases can land us in serious financial trouble, leaving behind a legacy of interest charges and even unmanageable repayments."

For this reason, he urged people to start putting any spare change they have into a piggy bank and putting that money into a savings account every time it fills up, stating that this is a simple way to make a big impact on personal financial security.

Clitheroe has also pointed out that with interest rates at historically low levels, it is vital that people compare savings accounts before signing up.

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