Australians Battle Post-Holiday Debt: Tips to Manage Financial Strain

Australians are grappling with post-holiday debt as credit and charge-card balances hit a four-year high. Financial hardship is notably prevalent among Millennials, with many unaware of their rights to seek lender assistance. Effective debt management involves understanding credit terms, choosing low-interest options, and considering alternative income strategies.

Rockhampton, Dec 29 (The Conversation) – With the festive season wrapping up, Australians face the daunting task of managing holiday expenses. Credit and charge-card balances have surged to A$18.4 billion as of September, a four-year high.

A survey by the Australian Securities and Investments Commission (ASIC) reveals that nearly half of Australian adults with debt struggled with repayments last year, with Millennials most affected. Many remain unaware of their right to request hardship assistance from lenders.

To tackle debts, consumers should consider low-interest options and investigate buy-now, pay-later services. Engaging with financial hardship teams, refinancing options, and exploring additional income streams can alleviate financial pressure. The National Debt Helpline and Pro Bono Financial Advice Network offer support for those facing significant challenges.

(With inputs from agencies.)