DEBT035 "Tap and go" and then what? (587 words)

It is commonly reported in the press that Australians are suffering under growing levels of personal debt. The figures in this article are frightening and with the growing use of the easy “tap and go” technology it may look like it can only get worse. This article provides some simple tips on how to overcome the traps of falling prey to credit card debt. It also recommends talking to a financial adviser to investigate solutions.

Talk about hammering the plastic. In May 2021, Australia’s 13.3 million credit card accounts were used to make over 276 million transactions with a total value of $27.9 billion. Card holders who don’t pay their balances in full every month are currently paying interest on more than $20 billion worth of credit card debt. Interest rates range from 10% to 22% per annum so that adds up to billions of interest owing – and growing!

It’s not just the easy money that cards provide; it’s the easy form of delivery via “tap and go” that’s pushing our debt to extraordinary levels. The quicker the transaction, the less thought or planning required. Pay now and think about it (and deal with it) later.

Don’t become a statistic - here are some things to look out for plus a few tips.