“Christmas Debt Hangover”?

With interest rates increasing this week you need to take action now and look at your family budget.

With summer & Christmas fast approaching many people want to get their your body fitter by working out more, but have you thought about your financial fitness

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Unfortunately it’s all too easy to get caught up in the festive season spending with the majority of retailers promoting the buy now pay later attitude, not to mention the pre and post Christmas sales that seem “too good an opportunity” to miss.

If this sounds familiar and you really want to make a difference to your finances here are some credit card tips to help you start to take control over your money.

• Change your mindset- Have a credit card for your convenience. Learn to use it to your advantage not as an easy way to obtain credit or to spend on items that you don’t really need.
• Transfer your debt to a lower interest credit card.

Credit card rates can vary considerably from anywhere between 10% and 20%. There are also many special offers available to transfer the balance to another Bank at a low interest rate. Conditions usually apply so make sure you fully understand the conditions of the transfer.

• If you have multiple credit cards – focus on paying off the card with the highest interest rate first.
• Pay more than the minimum repayment each month.  If you can’t pay the full balance try and pay as much extra as you can each month.
• Make use of your savings to pay the credit card.  Your savings may be earning you a lesser amount of interest than you would be paying on the credit card balance. It makes no sense to be earning just 5% or less on your savings and paying around 19% on your credit card.
• Look at the type of card you are using. Is it the best type for your spending situation? Many REWARDS cards actually charge a higher rate of interest and usually attract a higher annual fee. Get to know your credit card terms & conditions better. “Interest Free days” can be very misleading.
• Consolidate your debt. –Depending on your situation you may be able to consolidate your debts at a lower rate of interest. This method requires a carefully structured repayment plan.
• Communicate -If you cannot see a way out of your financial hardship talk to your bank as soon as possible. They need to know your situation to enable them to structure a suitable repayment plan

Donna Emerson – Responsible Financial Solutions

For help setting up your family budget email: donna@responsiblefs.com.au

Visit our website: www.responsiblefinancialsolutions.com.au

www.responsiblemoneychoices.com

Disclaimer: Information provided does not take into account your particular investment objectives, financial situation or investment needs. You should assess whether the information is appropriate to your particular investment objectives, financial situation and investment needs. You should do this before making an investment decision on the basis of this information. You can either make this assessment yourself or seek the assistance of any adviser.