It seems Australians are not entirely money-conscious when it comes to entering into debt, as a recent Federal Government report has found.
The latest survey conducted by the Financial Literacy Foundation has divulged details about the general attitudes towards credit and debts amongst the Australian population.
The nationwide survey found, 21% of respondents will get into debt by buying things they cannot afford, and 17% pay only the minimum amount owing on their loans.
Australian Debt Rising
These trends are testimony to the dwindling awareness of economic management in the age increased spending. With ‘interest free’ periods and a whirlwind of effective advertising, many Australians succumb to the products that land them in fast debt. Similarly, the use of credit can become a financial curse if not properly researched first.
“Credit cards can be an effective and convenient tool, and loans are an essential part of achieving longer term goals like owning a home or car. However, to use debt wisely it needs to be understood and affordable,” says Mr Paul Clitheroe, Chairman of the Foundation’s Advisory Board.
Those owing multiple debts and juggling repayments, can often only afford to pay the bare minimum of each loan. This can result in debtors paying off only enough to suffuse the interest of each loan, without making any significant progress on paying off the sums.
If you are struggling to pay off multiple repayments, and cannot seem to see the light at the end of the tunnel, ALC can help. We can consolidate all your debts into one easier monthly repayment, helping you to work towards a brighter financial future. Call us today on 1300 138 188.