Multiple credit card debts 'an issue for Aussies'

Australians are increasingly looking to get themselves on a firm financial footing, new Genworth Financial research shows.Figures released by the firm indicate that an increasing number of people are debt free.Questioned in April and May, just over a fift

Keeping on top of multiple financial commitments is proving to be an increasingly difficult task for many people, it has been suggested.

As the economic crisis continues to rumble on, financial counsellor Jill Com reveals in an article in the Age that her organisation has seen an increase in the number of consumers seeking help with getting on a firm financial footing.

"People who were working and coping beautifully with their financial issues have become unemployed or underemployed and that leads to all sorts of problems. I think the credit crunch has definitely impacted on people who traditionally coped," she tells the publication.

In particular, it appears many are struggling to keep up with demands for payment across multiple credit cards.

"The multiple credit card [debt] is an issue. We're seeing people who quite often didn't have the ability to make those repayments anyway and yet they were approved by the banks," Ms Com claims.

One example of this - albeit an extreme one - she reveals, is a man who sought guidance from her organisation earlier this year who, after losing his job, was revealed to owe a total of $240,000 across 22 credit cards.

Those looking to prevent such significant debt problems from developing could find that transferring money owed across a number of cards on to a single 0% balance product could be of assistance.

However, Shaun Cornelius, chief executive of Infochoice, claimed in a recent Courier Mail piece that although 0% balance transfers can save consumers hundreds of dollars in interest repayments, the terms and conditions attached to such products can sometimes be confusing.

Meanwhile, CommSec economist Savanth Sebastian tells the Age that although there a number of early indicators the global economy is beginning to stabilise, people are still looking to be careful with regards to money management and starting to shun debt, where they once would have borrowed.

However, for those looking to credit cards to help fund a major purchase, selecting one which offers a low annual fee could be advisable.

Written by Nate Sawyer