Debt isn't necessarily a bad thing. Debt allows us to get essential items we might not be able to pay for all at once; neccessities like a laptop for studies, a fridge or desk. Ideally, you only want to borrow money or take out a credit for a fixed asset or for a considered investment which will lead to an increase in value gained, over time. Ask yourself how necessary your purchase is. Is it a 'want' or is it a 'need'. For example, in many cases buying a car when living near public transport is a 'want'. And the annual cost of maintaining a car is considerable....enough to push many student budgets' into the red. Never mind that a car decreases in value the moment you buy it!

To see more TIPS on 'borrowing & credit' including 'managing debt', the ASIC government website provides a good starting point.

Should you have ongoing debt where you are unable to make full repayments over time, you would best consult a free, licensed Financial Counselor about how you can best come to an arrangement with the people you owe money to.

Credit and debit cards 

Credit cards can be convenient if you don't want to carry cash.

Because they mostly come with high interest rates for when you cannot make full payment by the due date.....they can also lead to much emotional and financial pain. To avoid to running into trouble, here is a calculator where you can enter what it may cost you to carry over credit card repayments. That is why we prefer the Debit Card.

To keep track of your credit card usage, you should  log-on to your internet banking website on a weekly basis, to monitor your spend and to check for any unusual charges to your credit card.

Some tips on how to use your card:

  • Treat your credit card like cash - don't spend it if you don't have it.
  • Don't use more than one credit card.
  • Pay off your debts every month on time so you don't get charged interest.
  • Think about getting a debit card instead so you’re dipping into money you have.

Debit cards work the same way as a credit card except they draw money directly from your bank account so you aren’t spending money you don't have. With a Debit Card, you must have the funds in your bank account, in order to pay for your purchases. That means, there are no nasty revelations at the end of the month! Debit cards can come with the Visa or Mastercard symbol and are used the same way a credit card is, including withdrawing money from ATMs, phone and internet banking, and EFTPOS..

Mobile phones 

Mobile phones are a regular debt item (overdue bill) on a students' budget.

Remember this when shopping for a new mobile data-plan: You can always upgrade the data-plan (without paying a penalty), but you cannot reduce the data-plan. We always advise caution against signing up for a high-end monthly data plan when you purchase a new phone and plan combo. A $40 to $60 plan per month is generally quite adequate, unless you are using you mobile phone for considerable Uni online work. Also,make sure you’re clear on how long you’ll be tied into a contract for and if you can reduce the data-plan with no penalties. Spend some time shopping around for the best deal (opens an external site).

Some phone networks have plans with free calls after certain times, or to users of the same network. Be warned however: Data can add up quickly – especially overseas (opens an external site).

Finally, if your bills are bigger than your budget allows and you find yourself in trouble, it’s always worth asking for help from your mobile company. It’s possible they will give you an extension on the due date or allow you to pay in instalments. Australia’s phone providers have a legal duty of care (opens an external site) to customers finding it difficult to pay. The Telecommunications Industry Ombudsman offers assistance to resolve consumer complaints with regard to phone and internet service providers.