Australian households have recently surveyed that they are experiencing an uplift in credit card debt stress. In fact 17% of the people surveyed responded by saying that credit card debt was a bigger problem than their mortgage.
The research revealed that “credit card debt overtook mortgage debt as the main form of household debt”. “This is the first time since November 2006 that households nominate credit card, and not mortgage debt, as their main form of debt.”
As at June 2010, the average standard variable rate for mortgages offered by the big four banks was approximately 7.38 % p.a. according to RateCity.com.au, while the average rate on a standard credit card is 19.6% p.a.
Credit card debt is clearly an expensive form of credit and should be avoided as a source of long term debt. Credit card debt should be avoided or kept to a minimum where possible. If you have equity in your home, it would more appropriate to redraw that equity and pay off your credit card debt. If you don’t know a house or don’t have any equity in your house and have high levels of credit card debt, you may want to seek professional advice to learn the most efficient way to pay off the credit card debt.
We have developed a computer based algorithm which will provide you with impartial debt advice which you can trust. The recommendations may range from:
Tagged → Credit card debt stress