Do you have FOMO and is that contributing to your financial prosperity, or keeping you up at night?
Comparison website Finder recently reported that household debt hit a record high of more than $2.5 trillion at the end of December — an average of more than $257,000 per household, which represents more than 180% of disposable income which is one of the highest rates in the world according to recent reports.
More than half of Australians’ debt was in the form of credit cards followed by personal loans, car loans, buy-now-pay-later services, and payday loans last year, according to Canstar’s Consumer Pulse report.
Credit card debt fell to 56 percent last year from 67 percent in 2019 as consumers curbed spending in shops and restaurants during the Covid pandemic.
However buy now, pay later debt nearly doubled to 18 percent from 10 percent over the same period given the fast growth in the online-based payment schemes.
So the question begs, are you making impulsive decisions that you regret later because you don't actually need to pay now?
If so, time to cut up those cards, and speak to us about debt consolidation, to get your payments, rates, and debt down, and power up that debt reduction while interest rates are so low!
Rachael Bland – Founder & CEO