Clearing off credit card debts should be borrowers' first financial priority, it has been claimed.
Repaying money owed on credit cards should be the first step in getting on a firm financial footing, it has been suggested.
Indeed, Tammy May, director of MyBudget, points out that deciding which debts to prioritise can be an area of difficulty for many people. However, she tells News Limited newspapers that repaying the likes of credit cards and personal loans should be an area of focus for borrowers, as should other forms of high-interest debts.
"If you have a personal loan with a high interest rate you are looking to pay off, make sure you will not incur any penalties for doing this," she adds.
Such Australian banking advice comes as Kevin Benger, chief executive of credit union Community CPS Australia, states that high-interest debts are typically the hardest for people to control.
"Credit cards, store cards and mobile phone accounts are the big ones that most people generally don't control well, so get rid of them if you can," he tells the publication.
Meanwhile, merging debts owed across a number of sources could help people to keep an eye on how much they owe, as Mr Benger recommended that no more than a maximum of two credit cards are held at any one time.
"Any more than that can be a recipe for disaster," he states, with the seeking out of a 0% balance credit card deal one possible way to consolidate multiple debts.
However, he points out that people should avoid be wary of special offers on credit cards and other products as "nothing comes without a cost".
His guidance comes as the publication states that unemployment figures and interest rates are set to increase, placing more pressure on consumers in the months to come.
Mr Benger's guidance on repaying debts and tips for saving could be especially useful as recent Reserve Bank figures showed credit card spending rose by a tenth over the course of June, with the typical debt standing at $3,127.05 per card.
OZ Price Comparison website - Which4U -
Compare Credit Cards,
Savings Accounts,
Bank Accounts, Loans, Mortgages and Insurance to find the best OZ deals
