Over the last 10 years households in Australia have borrowed an additional $770bn. Of this, 90% was used to buy assets. $420bn for houses to live in, $240bn for houses to rent and $40bn for shares. If borrowing was an Olympic sport, we would have to be a big chance for gold at the Debt Olympics.
Buy now, pay later - there's no shortage of interest-free offers from stores selling everything from designer furniture to home theatre packages. While it's tempting to take home the very latest gizmo and worry about paying for it later, be aware of how another big debt could affect your finances after the novelty wears off and real life kicks back in.
With yet another RBA interest rate rise to contend with, it’s looking less and less likely that you can move up to a luxury home with the lot - including a beautiful bathroom and ensuite.
The warning signs are unmistakeable: the euphoric high of several intensive shopping trips followed by a crashing low at bank statement time. Repeating this pattern of over-spending is likely to send your budget to break-point. Fortunately, you can take action to shake the habit with the help of the following guidelines.
The next time you need money, you will probably think about getting a personal loan or a credit card. Naturally, the main question revolves around which of the two is cheaper.
^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.