We are all vulnerable to accumulating debt, but young people are even more so. It is easy to get caught up in the moment, “I love it, I’ve gotta have it now!”
Debt is something that can sneak up on anyone. It’s easy for bills to mount up, credit card expenses to grow and mobile phones often become more expensive than first expected. Debt can bring you down and can pressure you to make hasty decisions.
As an independent person, you need to be able to show that you can manage your finances and take responsibility for your debt. You don’t want to start out with a bad credit rating. For tips on how to stay debt free go to the avoiding debt section below.
Here are a couple of places that could help:
The Centrelink Financial Information Service is a free, confidential service that provides advice on financial matters. You can contact them on 132 300.
You can also call the National Debt Helpline on 1800 007 007 for help if you find yourself struggling with debt.
By putting some simple strategies into place you can avoid getting into huge amounts of debt.
A weekly, fortnightly or monthly budget allows you to weigh up your expenses, how much you earn and how much you can afford to spend. Check out our budgeting section for tips.
2. Find out what your bank charges are.
Some banks charge you for a simple ATM transaction, which can see you in the red at the end of the month. ‘In the red’ means in debt, so be sure that you know what your bank is taking from your account each time you make a transaction. You may be better off changing to a bank with lower bank charges.
3. Don’t spend money that you don’t have.
Sounds simple doesn’t it. Unless you are buying something that will help you generate income, such as a tool for a job or work clothes, ask yourself if you really need it.
Check out https://youtu.be/kqtSqrVKSKE for more information on Credit. The Checkout tackles the issues that affect Australian consumers every day, including tenancy rights, buying a car, travel insurance and more.
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