Credit cards 'needs to be paid off'

Getting to grips with credit card debt needs to be a main area of focus for Aussie credit consumers, it has been suggested.

Laura Menschik, a financial adviser at WLM Financial Services, urges that those set to receive a cash handout from the government should view such money as a chance for them to "repay non-deductible debt, especially credit card debt".

Indeed, clearing off money owed on the plastic is particularly advisable, Ms Menschik tells the Australian, given the fact that interest rates on credit cards remain above the 12 per cent mark.

And not only will getting to grips with credit cards bring financial benefits for Aussies, she also points out that it "makes you feel better, too".

Speaking earlier this month, Dr Mark McGovern, senior lecturer at the Queensland University of Technology, claims that repaying credit card debts should one of Aussies' main priorities upon receiving a cash handout from the government.

And after tackling credit card debts, he advises people focus meeting other essential financial commitments.