If you had to publish your debt on Facebook, would you be embarrassed?
Saving money is not a glamorous sport. Nobody posts pictures of their bonus interest account or mortgage payment on their page – it’s just not exciting. Spending money however is a guaranteed way to get likes. Holidays, shopping, restaurant meals, concerts, drinks - that’s what my news feed is full of, and everyone else’s too. I bet if you added the cost up of a day’s worth of social media activities in my feed alone there would be enough to retire on.
What if every picture or status update had to come with a tag, showing if you’d used your own money or your credit card? Or what if there was a running tally of your debt ticking away alongside your updates – what would yours say?
“This holiday is going to cost me $200 a month in interest payments for the next 3 years”
“These drinks came from next August’s pay check”
“I've juggled 3 credit cards to just buy this dress”
We are pretty open with everything on our social media, but debt is still a dirty word. Nobody wants to kill the buzz with talk of interest, credit scores and revolving debt. It’s easier just to put it aside and worry about it someday.
For Hamish, someday is today. Hamish has started a job as an apprentice carpenter, and he needs a ute to get to work everyday. He goes to his bank to see whether he can borrow $10,000 to buy a second hand Hilux. He’s knocked back so he tries an online lender to see if he can get approved there. What Hamish doesn’t know – because it’s not the type of thing that his mates talk about, or is on his news feed is that the more times you apply for credit and are declined - the harder it becomes to get credit at all.
Hamish could have checked his free credit score www.getcreditscore.com.au before visiting his bank to see his credit health, without any impact to his credit score. It’s free, it’s safe and secure and it only takes a couple of minutes.
Once Hamish checked his score online, he saw that he’s not far off from getting a clean bill of health, if he just takes a couple of simple steps to consolidate his credit card debt and make regular monthly repayments to prove his readiness to get a loan.
In no time, Hamish will be posting a picture of himself in his shiny new ute, and maybe even how he improved his credit health to get there. Now that’s something worth sharing.