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COVID-19 lockdowns inspire Australians to wipe off record levels of credit card debt in May – The New Daily

COVID-19 lockdowns inspire Australians to wipe off record levels of credit card debt in May – The New Daily

Hugh recently chatted with Matt Johnson of The New Daily to discuss spending and surviving through COVID-19

Excerpt below

Centaur Financial Services director Hugh Robertson said now is a time for households to enter “survival mode” to shore up their finances, instead of ramping up non-essential spending.

“It’s good to see people reacting appropriately to the times and making intelligent decisions, but it also shows people are scared, meaning they are more likely to pay down debt than spend,” Mr Robertson told The New Daily.

The Do’s and Don’ts of paying down debt, according to Centaur Financial Services director Hugh Robertson 

  • DO assess the purpose of your credit card (whether it be for convenience, access to rewards points or travel insurance), and always review interest rates to see if there’s a better deal suited to your circumstances
  • DO try and pay off debt – and not just meet minimum repayment requirements – to eat into payments in arrears
  • DO remain disciplined with repayments, and DON’T get distracted from paying off debt as small purchases can add up quickly
  • DO include repayment goals in household budgets
  • IF you are considering a balance transfer card, be mindful of transfer fees and read the fine print, as card holders can be caught out at the end of zero-interest periods
  • DON’T use buy-now-pay-later schemes if you are also trying to service credit card debt.

Read the full article

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