It might seem counter-intuitive, but if you’re wealthy and paying off your home you’re likely to be in serious debt. The latest stats from the Australian Bureau of Statistics (ABS) show 29% of households are overindebted. Worryingly, almost half of us with a mortgage (47%) are struggling under the weight of repayments and a quarter of high-income households have too much debt. Sydney and Melbourne have the highest debt stress.
If this sounds all too familiar, there are plenty of ways to get those debts under control for good. The strategies that will work will depend on your age and where you’re at in life. In most cases, the idea is to knuckle down and plan to pay the debt off as soon as you can. You may have to make some sacrifices along the way, but every dollar you pay is a dollar that goes toward funding your future financial independence.
Let’s get started
It can be tough understanding how to navigate your finances when you’re in your first job or buying your first car or home, especially if you weren’t taught personal finance fundamentals at home or at school.
Gianna Thomson, a principal financial planner at Thomson Wealth, says at this stage of life it can be a good idea to stay away from credit cards and buy now, pay later services such as Afterpay and Zip Pay.
“If you do need a credit card, have a small limit of no more than $2000. Always try to keep a cash buffer to use instead of paying for things with a credit card. I don’t have a credit card and use my Visa debit card for internet purchases,” says Thomson.
Donna Sgangarella, managing director at FinFit Wealth Solutions, says although your 20s should be a time to set goals and spend smartly, all too often people in this age bracket have big personal debt. It’s usually a mixture of credit cards, personal loans, car loans and buy now, pay later services.
هذه القصة مأخوذة من طبعة November 2019 من Money Magazine Australia.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة November 2019 من Money Magazine Australia.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
