SR GROUP
  • Home
  • About Us
  • SRG ADVISORY
    • Debt Consolidation
    • Referral Program
  • SRG ADVOCACY
  • NEWSROOM
  • Contact Us
    • Locations

About Credit Card Debt

14/4/2020

 
In Australia, there are currently over 14.7 million credit cards in circulation. Credit cards come with pros but unfortunately a lot of cons as well. Credit card debt is one of the biggest causes of financial stress in this country. The effects caused can be devastating to individuals, families and small business. 

​Here are a few pros to having a credit card:
  • Flexibility. A credit card is perfect as you don’t need large amounts of cash in your wallet. You can also move money quickly, using apps on your phone.
  • Safety. Your credit card is lost or stolen, you can replace it, and in most cases, your maximum liability for fraudulent use is limited by law to $50. Visa, Mastercard and American Express operate zero-liability policies which means you are not liable for a cent.
  • Spending power. To readily changing credit limits, you can purchase large goods immediately. Otherwise, you may typically save up for over several months.
Now for the cons of a credit card and what to look out for:
  • Overspending. Can get easily carried away with spending on your credit card, creating a debt that is beyond your means to pay off. Credit cards are not having access to “free money”. Unfortunately, when the interest kicks in, you will end up paying more than the purchase price of your goods.
  • Multitasking. A credit card for just one task. If it has a reasonable rate for purchases, then reserve it for that. If a balance transfer is made to a credit card, then it should be used for nothing else. Problems arise when customers think it’s okay to carry out both these transactions on their credit card simultaneously. This creates a conflict of interest – literally. The lower interest debt is always paid off first, which means the higher interest purchases will keep accruing interest untouched by your repayments.
  • False sense of security. A credit card to cover everyday purchases can lead you to believe you have more cash available than you do. Having money in your pocket must be logically balanced by the level of your credit card debt. If your credit card debt is building, set aside your ready cash to cover it at the end of the month to avoid interest payments. 
  • Signed Contract. Owning a credit card means you are involved in a legally-binding contract, so you need to make sure you have control over it.
  • Balance Transfer Deals. Customers to shift their existing credit card balance to a rival and not pay any interest on that amount for a limited period. If you have a massive credit card debt, these are appealing, but remember that the ‘zero per cent’ interest will only cover the balance you bring across, not new purchases, which will often be charged interest at a much higher rate. It would help to have a strategy to pay the debt over the required time to benefit from these deals.
If you are dealing with credit card debt and would like a no cost, obligation-free consultation, please call one of our team on 02 8304 9300 or email us. 

(https://www.moneysmart.gov.au/)

Comments are closed.

    NEWSROOM

    In our Newsroom, we share advice, the latest news, financial tips and our case studies. Please enter your email address to receive our monthly news update. 

    Subscribe

    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    June 2020
    April 2020
    March 2020
    January 2020
    December 2019
    September 2019
    August 2019
    July 2019
    April 2019
    March 2019
    February 2019
    December 2018
    October 2018
    August 2018
    July 2018
    June 2018
    April 2018
    February 2018
    January 2018
    November 2017
    October 2017
    September 2017
    June 2017
    November 2016
    July 2016

    Categories

    All
    2018 Business Tips
    2019-2020 Bushfires
    ACCC
    ACORN
    Advisory Services
    Advocate Susie Bennell
    ASIC
    ATO
    ATO Company Director
    ATO Distress
    Australian Bankruptcy Trends
    Banking Royal Commission
    Bankruptcy
    Bendigo & Adelaide Bank
    Bill Shorten
    Citibank
    Commbank
    Consumer Law Centre
    COVID 19
    Credit Negiotations
    Debt Consolidation
    Debt Negotiation
    Director's Responsibility
    Duty Of Care
    Family Run Business
    Financial Counsellors
    Financial Difficulty
    Financial Distress Assistance
    Financial Fraud Victims
    Foodco
    Franchising Victims
    Great Southern
    Insolvency
    Investment Fraud
    Investment Tips 2018
    Mick De Brenni
    Minister For Revenue And Financial Services Kelly O’Dwyer
    Moneysmart
    New Zealand
    Peter DImitrov
    Pilbara
    Ponzi Schemes
    Prime Trust
    Professional Indemnity Insurance
    QBCC
    Queensland Builders
    Running A Business
    Scams
    Scott Morrison
    SR Group
    St George
    Superannuation Guarantee
    Support Packages
    Susie Barnettt
    Susie Bennell
    The Big Four Banks
    Veronica Macpherson
    Westpac

 HOME I ABOUT I SRG ADVISORY I SRG ADVOCACY  I NEWSROOM I ADVISORY CASE STUDIES l ADVOCACY CASE STUDIES  I PRIVACY POLICY l TERMS & CONDITIONS  I AFCA l

We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture. We pay our respects to their Elders past, present and emerging and thank them for their wisdom and guidance as we walk in their footsteps.
All contents of this website © COPYRIGHT 2021
​SR Group Holdings Pty Ltd.
  • Home
  • About Us
  • SRG ADVISORY
    • Debt Consolidation
    • Referral Program
  • SRG ADVOCACY
  • NEWSROOM
  • Contact Us
    • Locations