Thanks to low interest rates, many Australians have been able to save more money during 2013, stabilising some of the debt that many families are under. According to Mozo, the negative economic news that has circulated much of the year, particularly the news about job cuts, has pushed Australians into saving and getting ahead on their debts.
However, for many getting caught up in the hype of Christmas, the result will be a fall back into debt over the festive season – not the best way to start the New Year.
New changes to credit laws mean that any missed bill payments will be recorded on your credit file and the threat of rising interest rates is real. Australians are being warned to prepare themselves and take it easy with their Christmas spending.
To help prepare yourself for 2014, you can:
1. Find the lowest rate home loan.
2. Refrain from using a credit card that can carry interest rates as high as 20%.
3. Set a budget and stick to it. Any money left over can be placed in a high interest account.
4. Set up direct debits so you can avoid late payment fees (and bad credit marks).
