Debit
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 grow quickly and mobile phones often become more expensive than first expected. Debt can be 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:
Credit and debt hotline
Over the phone financial advice – Call: 1800 808 488
Money Stuff website
The Money Stuff! website was developed by the NSW Office of Fair Trading with the Department of Education to assist young people prepare for independent living by helping them deal with consumer responsibility and personal financial management.
Avoiding debt
By putting some simple strategies into place you can avoid getting into huge amounts of debt.
1. Budget
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.
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 this guide for how to avoid common ‘debt traps’.