Credit card bills paid instead of other debts 'by many people'

People should ensure they always protect their home before paying off other debt

, one publication has noted.

Many people have to decide between the bills to pay and those to ignore when it comes to the end of the month and many are opting for ensuring they put money on their credit card statement.

This is according to advice by Investopedia.com, cited on the Bull.com.au, which noted that it is much more important to protect a person's home before anything else, adding: "Always pay your mortgage first so that you will have a place to live."

The piece also noted that people who pay the minimum on credit cards will ensure they amass large interest payments and extend their debt for years.

It stated that individuals need to carefully assess their mortgage payments, as well as other arrears and income to get back in the black.

In addition, the publication pointed out that consumers who are applying for more Aussie credit cards because their current options have reached their limits may be in financial danger, whether they are managing to pay off their mortgage or not.

Therefore, if this is the case it may be an indication that housing payments are too high.

What's more, a lot of people often assume that the size of their mortgage is the problem when in debt as it is the largest bill, but it could also be the case that too many other required payments are hampering a person's finances.

Moreover, the piece insisted that the first step when attempting to resolve these types of issues is to be aware of what is owed.

"Solutions can only become clear once you have every bill written down with the amount owed, the monthly payment and the interest rate you are being charged."

This advice comes after Maroochydore financial planner Michael Goodwin recommended that if people owe money it is better to be in debt on a home loan than a credit card, the Sunshine Coast Daily reports.

Credit card bills paid instead of other debts 'by many people'

By: Sam Gooch

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