Apr 06 2009
Credit Card Debt and The $900 Payout
The Rudd government wants you to use the cash payout going into many Australian tax payers bank accounts this week to stimulate the economy - or as we have said before invest in the $900 Kevin telly! Unfortunately what is good for the economy is not necessarily good for the average Australian and their family, in uncertain time paying off debt is a much better idea.
Do you pay off your credit card every month in full? If so congratulations - you are in the minority - but well done you. Most Australians live on credit card debt and that is a pretty stupid thing to be doing when then interest rate on most credit cards is still nearly 20%. If you have an outstanding debt on your credit card of around $1000 dollars you are paying $20 a year interest right? Wrong - because your balance goes up each month - after 30 days you will owe about $1016 and then you will pay interest on that larger amount the next month and so on plus all the other credit card fees: check out the details here
Think about this - if you lost your job and was out of work for a month or two - could you keep up the payments on the stuff you don’t need: not the house, but the car lease, the credit cards, the payments on the all-singing-dancing stainless steel fridge?
Maybe now is good time to take a long hard look at your lifestyle with a view of reducing your credit card and consumer debt, preferably to zero.
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