Ever considered to yourself, "I'm in probably the worst possible economic situation, and I'm certain every single person around me is in a more effective position"? It's something a many individuals think, because whenever you have financial issues, it can be one lonely spot. Australia is normally seen as' The Lucky Country' and the economy is performing very well. However the personal economies are not doing as well. Personal bankruptcies are on the rise as well as the complete family debt for Australia is around $650 billion, that equals to aproximatelly $32,500 for each man, child and woman. That's a lot of debt! The truly alarming fact is that household debt just keeps rising and it doesn't seem to be slowing. On a world scale, Australia rates badly for personal debt. The situation here is worse than that in the US and the UK!
For every single hundred dolars we make, $130 is owed!
With shocking figures like this, it's absolutely time to take action now. Think of the effect of another interest rate rise on folks that happen to be incredibly over extended? The problem is serious, and now is the time for everybody to go start applying effective money management practices. One important part of good money mutual good (read the article) management is getting rid of bad debt altogether. The next logical question hence is, "What is not good debt and what is excellent debt?"

Good Debt along with bad Debt

I know it can be hard to think that any form of debt may be good, any way it's real. Let me explain it all to you:
o Bad Debt: This typically represents bank card debt which incurs excessive interest. Oftentimes folks will accrue bad debt by utilizing credit to invest in things they do not need and can't afford. If the debt is negatively impacting upon your life and producing great stress, it is bad debt.
o Debt which is good: Good debt refers to using credit to buy things that improve our financial future. Examples can include a loan for a home (with a reduced interest rate) or even a tax-deductible, low interest loan to purchase property, great shares, and so on.

Improving your Financial Situation