Newspaper article News Mail Bundaberg Qld.

Givethecredit Card Finances a Check-Up

Newspaper article News Mail Bundaberg Qld.

Givethecredit Card Finances a Check-Up

Article excerpt

A MAJORITY of Queenslanders are concerned about their current financial situation, according to new research. New findings from Mortgage Choice's inaugural money survey found 58.3% of Queenslanders were either "very worried" or "concerned" about their financial situation. Mortgage Choice's Julian Collins said this statistic was not surprising given 59.2% of Queenslanders currently owed money on their credit card.

"The money survey found that of those with credit card debt, 32% currently owe more than $5000, while a further 9.8% owe between $4000 and $5000," Mr Collins said.

"Meanwhile, just 9.8% currently owe $500 or less."

Mr Collins said it was worrying to see so many Queenslanders owing significant debt on their credit card, especially when so many would only make the minimum repayments each month, rather than paying off their credit-card debt in full.

"People often don't realise that only making the minimum repayments each month on their credit card can actually hurt them financially over the longer term.

"For example, say you currently owe $5000 on your credit card, which has an interest rate of 14%. If you didn't charge anything else to the card and made the minimum repayments each month, it will take you 21 years and 11 months to pay off. Worse still, you will have spent almost $11,000 paying off $5000 of debt."

If you are concerned about your current financial situation and are only making the minimum repayments on your credit card each month, don't despair. Mr Collins said there were a few things you could do to help get yourself back on the path to financial freedom.

DEBT CONSOLIDATION:

Consolidating your debts can help you not only reduce the amount of interest you are paying but make your entire financial situation more manageable, saving you time and money in the process. …

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