Surprisingly not a lot of Australians know how to manage their credit card debt and mortgages. In its 2016 Money Survey, Mortgage Choice found that nearly one quarter of respondents had at least 12 months wages sitting in their offset account or paid off towards their mortgage. By comparison, only 13% of Australians said they were in the same financial position last year. The data also shows that credit card balances dropped by 2.4% in January. The study implicates a positive change for the Australian consumer being more responsibly mature compared to last year when it came to mortgages and credit card debt. In order for continued improvement, we must also do our part in settling our own credit card debt. So how do we settle this debt most of us face? Easier said than done we suppose. The key however is proper management meaning to settle it progressively rather than with an instant payment.
Managing Credit Card Debt and Mortgages
The best advice for settling credit card debt and mortgages is of course to simply pay the debt. However financial constraints prevent us from tackling the problem instantaneously. It is best to manage it progressively since regardless of whether we settle it or not, there is a big chance that we may enter another loan agreement in the future. The danger of a debt lies not on the debt itself but in the failure of the individual to manage it by minimizing the credit card debt. It might hurt your chances of getting another loan through lowering your credit score by lenders if you fail on the responsibility of settling your debt first.
If you do have the budget for a bigger payment that will lessen your credit card debt and mortgages, take the opportunity to pay. Since it will minimize the chances of accumulating debt interest and a fast settlement will build up on time. In the case of home loans and mortgages, you can save money and manage debt more efficiently when working with a cheaper mortgage loan which can be a lower interest rate. Take advantage of services provided by the mortgage provider. Make extra repayments for existing home loans as well as credit card debt.
And a little help from a professional is recommended if you are still having a hard time on settlement. Clean Credit offers you expert services when it comes to matters of credit debts and repairs. It provides and helps you to achieve your financial goals by helping you settle your debts that are dragging you to the financial abyss.