Young adults are finding themselves in financial strife with the endless pitfalls of credit schemes warns premier budgeting company MyBudget.
MyBudget assists clients by managing their finances, advising clients how to break bad financial habits, achieve their financial goals, reduce debt and save money.
MyBudget Director Tammy May revealed that she and her staff regularly encounter young adults already experiencing financial difficulties from poor choices.
"The buy-now-pay-later deals can be a great way to get some needed furniture or appliances but many people in this age bracket get caught out with huge interest rates and repayments they may not be able to afford," Ms May said.
Ms May advocates spending only what you earn is an extremely important lesson to learn.
"I have personally seen many young clients who have found themselves in hot water over enormous mobile phone bills," she said.
"All of a sudden they receive a large bill they can't afford to pay by the due date and their phone is disconnected, yet if they are on a contract they are liable to pay it out in addition to their bill,” she said.
Keeping within the budget is most important, so shopping around before making significant purchases or financial commitments is imperative according to MyBudget consultants.
One of the first steps people should take when they begin to take on more financial responsibility is to track their spending and draw up a budget," Ms May said.
Websites such as www.canstar.com.au offer comparisons on interest rates, credit cards, bank accounts and insurance.
Ms May suggests that young adults should begin preparing for a new stage in life by discussing budgeting and finances with their parents or guardians and gain an deeper understanding about needs versus wants.
"It is so important for people at this age to realise spending habits are just as important as saving habits," she said.
No comments:
Post a Comment