$30,000 to $80,000 credit card debt is not unusual, expert says

Being heavily in credit card debt is not that rare, one industry expert has noted.

Having between $30,000 and $80,000 worth of credit card and store account debt is not that unusual, according to one industry expert.

But mortgage adviser and Smartline State manager Richard Bradshaw said people need to consolidate their debt as it is a good way to clean up a personal balance sheet, the East Torrens Messenger reports.

He recommends that people "fold" money that they owe, such as balances on credit cards, into a home loan which could mean paying a lower interest rate.

Mr Bradshaw noted that the debt people have accumulated may be from things such as car loans, interest-free purchases and rental arrangements.

He added: "If you do consolidate, you still need to be committed to paying off the debt and not allowing yourself to get into a similar situation again in the future."

His comments come after Reserve Bank of Australia governor Glenn Stevens stated earlier this month that Australians have become more reluctant to take on new financial obligations, the Sydney Morning Herald reported.

By Mark Hornby