Debt is the last thing most Australians want to talk about, despite the country owing more than $18 billion in credit card and loan debt over Christmas alone, according to new research.
The study, commissioned by ING, found that more than 60 per cent of working Australians are in debt outside of home loans.
Yet a quarter of survey participants and more than 50 per cent of millenials are not doing anything about the debt because they are reluctant to talk about it, with some saying they feel “anxious” or “embarrassed” about the topic.
The research also showed that six in 10 Australians have never considered debt consolidation as a way to free themselves of debt sooner, yet a third of those in debt have not considered reducing their spending.
And nearly 30 per cent of Australians are living from pay check to pay check while struggling to save.
ING spokesperson David Breen said it was important for people to talk about their debt and how to manage it, whether that is opening up to friends, family or a financial advisor.
“The problem with not talking about debt is that options to solve the problem don’t then readily present themselves,” he said.
“For those struggling to manage multiple debt repayments, consolidating debts into one low-interest loan can reduce the stress of multiple repayments and high interest rates.
“A personal loan can be a great way to put all your debt in one place, so you know when, and how much, you’re paying off.”
Rolling your debts into one can also potentially slash the amount you’ll pay in fees and interest over time.
If you’re looking to consolidate your debt, consider using RateCity’s Personal Loans Marketplace, which shows you which personal loans you would have a realistic chance of qualifying for and what interest rates you’d actually be charged before you apply. Importantly, checking your chance of approval won’t affect your credit score.
At the end of the day, you’ll need to evaluate your own personal situation before using a personal loan to consolidate your debt. It’s best to seek advice from a financial expert before taking out any financial product.