Mesaimie Pty Ltd 
Login Click here to Join
Search:
Go
You are here: Home > Homepage > News alerts > Avoid Financial Hangovers this Christmas

Avoid Financial Hangovers this Christmas

Avoid financial hangovers this ChristmasIn the lead-up to Christmas, the Australian Securities and Investments Commission (ASIC) is warning people to manage their credit cards and budget carefully to avoid a painful financial hangover.

Australians owe more than $27.9 billion on credit cards alone - a reminder that credit cards are usually the most expensive way of borrowing money.

'Getting into debt is far easier than getting out of it. By planning your Christmas spending now, you can avoid piling up unmanageable credit card debts', ASIC's Executive Director of Consumer Protection and International Relations, Mr Greg Tanzer said.

'Credit card interest rates, which average about 16 per cent, can give you a nasty financial hangover. For every $1,000 you put on your credit card, you pay another $160 a year in interest. That's a very expensive way of doing the Christmas shopping.'

'If you can afford it, pay cash. Even now, there can still be time to save a bit extra to avoid borrowing more than you can afford. Using lay-by can help you avoid going into debt.'

'If you do need to use your credit card, see if you can start saving a bit extra now to clear your credit card debt as soon as possible. Then start putting some money aside for next Christmas', Mr Tanzer said.

'Also, consider other Christmas savings tips. For example, if you're buying a mobile phone for your children this Christmas, buy them a pre-paid card, and make them top it up if they spend too fast.'

Some simple tips for a financially happier Christmas:

  • pay by cash or EPTPOS instead of using credit if you can afford it;
  • pay credit cards off as fast as you can;
  • use lay-by for Christmas shopping; and
  • use pre-paid cards for your children's mobile phones and make them top up any overspending.

Copyright ASIC, 22 November 2004. http://www.fido.asic.gov.au

This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.

Back Email a Friend View Printable Version
eknowhow | The World's Best Websites
 
Privacy Policy and Disclaimer