Credit Smart Solutions

Should You Pay Off Debt or Save First? (Australia 2025) This is one of the biggest financial dilemmas Australians face — especially in uncertain times like 2025. Start with an Emergency Fund Before aggressively paying off debt, build a small emergency fund of $1,000–$3,000 to cover surprise expenses. High-Interest Debt Takes Priority If your debt has interest rates above 10% (like credit cards), paying it off saves more money than most savings accounts can earn. Balance Both with a 70/30 Strategy Put 70% of extra cash toward high-interest debt Put 30% toward savings goals or emergency fund Use Windfalls Wisely Tax refund? Bonus? Split it — pay down debt and top up savings. That way you build peace of mind and reduce what you owe. Emotional Factors Matter Too Saving builds a sense of progress. Paying off debt relieves stress. Both matter. Choose what motivates you to stay consistent. Speak with a Financial Coach Everyone’s situation is different. A professiona...

How to Use the Snowball Method to Pay Off Debt (Australian Guide 2025) If you’re juggling multiple debts and struggling to stay motivated, the Snowball Method could be your best solution in 2025. It’s simple, powerful, and helps you stay focused. What Is the Snowball Method? The Snowball Method involves paying off your smallest debt first — regardless of interest rate — while making minimum payments on all others. Once the smallest is paid off, you move to the next smallest, and so on. Why It Works Psychological Wins: You get small wins early, keeping you motivated. Momentum: Like a snowball rolling downhill, your progress gets bigger and faster over time. Steps to Follow List all your debts from smallest to largest (ignore interest rate) Make minimum payments on all debts Throw extra money at the smallest debt Once it’s paid off, roll that amount into the next smallest Example: Credit Card 1: $600 Car Loan: $3,000 Credit Card 2: $4,500 P...