Australians spent late 2009 on a credit card bender which has led to a 25% leap in work for debt collectors. Don’t fall into the credit card debt trap.
The debt trap is set to worsen, a new credit expectations survey has revealed. The survey has indicated that 4 in 10 Aussies will rely on their credit cards to pay essential bills this quarter.
The latest Reserve Bank figures show consumers spent more than $20 billion on credit and charge cards in November 2009, pushing the average credit card account balance to $3,196.
In further evidence of the growing dependence on debt, the survey has found 43% of Australians expect to use their credit cards to pay for otherwise unaffordable expenses in the March quarter.
In the case of 18 to 34-year-olds, 56% are expected to use credit cards to pay some of their bills, which is up by 11% on the previous quarterly survey. Those most likely to rely on credit are young adults and families with children, while nearly half of all families with children are expected to be paying bills with credit cards – up by 8%.
A credit card debt continues to rise; the amount of repayments aimed at reducing credit card debt has drastically fallen, forcing Aussies everywhere to look for credit card consolidation solutions.
Quick tips on credit card consolidation and debt reduction
- Use the equity in your home – refinance your home loan and consolidate credit card debt quickly
- Debt consolidation loans – Consolidate credit card debt into one affordable payment
- Pay your credit card debt in order of priority
- Credit card consolidation with a balance transfer
- Cut up your credit cards and avoid the temptation