- 42% of young people under the age of 24 have between $10,000-$30,000 in debt (not including a mortgage).
- Around half of Australians aged 18-24 said they NEVER had a balance of $0 on their credit card account in the previous year.
- About 70% of Australians aged 18-24 said they don’t know the interest rate they pay on their credit card.
- One in five Australians aged 18-24 say that personal debt is something they worry about ‘occasionally’, while one in 10 say they worry about it ‘most days’.
If you don't have a credit card yet let these findings be a warning to you. If you do have a credit card and are having problems paying it off here are some tips from news.com.au:
HOW TO SLASH CREDIT CARD INTEREST
- Repay the outstanding balance within the interest-free period every month and it won’t cost you a cent.
- Compare credit card offers online and then phone your financial institution to ask for a better deal.
- Transfer your debt to a lower-rate credit card, cut up the old one, and set up automatic transfers to keep reducing the debt.
- Consider a balance transfer card — there are more than 40 of these offering zero per cent interest for 12 months or more. But check the fine print.
- Do not keep money in savings accounts if you have credit card debt. The interest gained is tiny compared to the interest saved by paying off the card.
- Switch to a debit card, which has the same functionality but uses your money instead of borrowed money.
- Consolidate credit card debt into a low-interest mortgage or other loan, but be sure to change your spending behaviour to avoid doubling up on debt.
If you must have a credit card Canstar and RateCity have rated hundreds of credit cards to find the one that suits you best and help you avoid high annual fees and interest rates.