Written by 
- The Savvy Promise
At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.
We all have secrets, but one secret is digging 4.6 million Australians into debt. Secret spending is on the rise with people spending money on things their partner does not know about. Without being open about your secret debt, it could plunge both you and your partner into debt. Take the first step with these five tips that will help you curb your secret debt.
Australians affair with hidden debt is one of the causes of divorce
If you are in a long-term relationship or married, then being open about your financial status is vital. You have probably argued with your partner about money, but hiding your financial issues can let your debt grow like a tumour.
A survey conducted by Relationship Australia showed that financial stress was likely to cause 85% of couples to drift apart. You can start by being open and honest about your spending habits with your partner. The next step is to plan on how you plan to use your finances together to avoid falling into more debt.
Devise a budget so that every cent goes accounted for
Household debt remains high in Australia. If you are a couple that is just starting a family, this can play a huge role that is why it is important to create a realistic budget that works for the both of you. It is important that you share your views on money management and that you share the same financial goals to make sure that it works effectively.
Evaluate your current credit card
Most of the secret spending happens online, with men who are most likely to make a secret purchase compared to their female counterparts. However, not all online spending is done in secret but can still dig you into debt because of the type of credit card you have. This is the perfect time for you to re-evaluate your credit card to make sure that its interest rates and yearly fees still match the type of lifestyle you have. Swiping with the wrong card can cause more trouble. It’s always good to keep in mind that you must compare your credit card to get the best deal possible.
Consolidate your debt to manage your debt better
Unfortunately, there is no reset button you can press to undo the amount of debt you currently. However, you have the option to consolidate your credit card debt into one. This will help you roll all your debt you own on multiple credit cards into one, reduce the interest rate, and help you keep track on one payment instead of multiple.
Credit card balance transfer could be another option
This is a card that is not for the faint-hearted, but the disciplined who will be able to maximise the 0% interest period to help stabilise your debt. The best way this card can work in your favour is by paying off the balance as much as you can for each month instead of sticking to the minimum repayments. It should not be taken as a one-stop debt clearance card, but rather something that can help you reduce your debt more effectively.
The take home is to always be honest with what you can afford, and also being open with your partner about your financial status while there is still time to make things right.
Did you find this page helpful?
This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for personal loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.
