Rank credit card and home loan debt 'from good to bad'

Ranking debt from good to bad might help people pay it off, one industry expert has noted.

People who have financial issues might like to rank their debt from good to bad, according to one industry expert.

Darren Johns, an adviser for Align Financial, recommended that consumers could put personal loans and credit cards first followed by car loans, home loans and investment loans.

These views are echoed by Financial Planning's Paul Moran, who pointed out individuals should be working backwards from the highest interest rate.

He added: "There's little point making repayments on a mortgage at seven per cent when you're paying 19 per cent on your credit card."

Mr Johns also noted that people should try to pay off their Aussie credit card as the interest on this will be higher than anyone can hope to gain on an investment.

This news comes after Maroochydore financial planner Michael Goodwin, writing for the Sunshine Coast Daily, stated that being in debt with home loans is better than credit card arrears.

By Mark Hornby