Should You Use Superannuation to Pay Off Debt in 2025?
Should You Use Superannuation to Pay Off Debt in 2025? With rising interest rates and living costs in Australia, it’s tempting to dip into your super to tackle mounting debts. But is it the right move? Is Early Access Even Possible? Superannuation is meant for retirement, but in certain hardship cases, early access is allowed — like serious illness or long-term unemployment. Pros of Using Super to Pay Debt Clears high-interest debt quickly Provides immediate financial relief Risks and Downsides Reduces your retirement savings significantly May incur tax penalties or impact government benefits Misses out on compounding growth over decades Better Alternatives Consider debt consolidation, financial counseling, or negotiating lower interest rates before touching your super. Bottom Line: Your super is your future. Think twice before trading tomorrow’s comfort for today’s relief.