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Graeme Holm Suggests Using Cash Instead of Debit or Credit

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According to financial advisor Graeme Holm, around 30% of Australians have excessive levels of debt. According to Holm’s, the best approach to avoid this dilemma and to get out of debt is to stick to cash. In Holm’s words, if you can’t pay cash, you’re not buying it. Mortgage debt is a big part of the problem according to Holm, who points out that although mortgage debt is charged on a monthly basis, it compounds daily. As a result, many Australians live paycheck to paycheck in order to make their mortgage payments. Similarly, credit cards are another contributing factor that aggravates the country’s personal debt problem.


Holm argues that credit cards are just too easy to use, from a psychological point of view. Studies show that people spend more money when they charge their purchases versus when they pay in cash. In addition, he believes that it is simply to easy to loose track of purchases when using plastic. Holm suggests withdrawing your weekly budgeted amount and use cash in order to keep yourself on track. If you run out of money, you’ll know something’s not working.


In addition, Holm explains that cash helps you avoid large impulse buys. Instead, you need to save your cash for major purchases. That way, you’ll only decide to hand over your hard earned money when the purchase is really worth it.


Graeme Holm has worked in the financial services industry for 17 years. When he started his financial consultancy, he spent six months researching the major problems in the Australian mortgage market. What he discovered was that banks did not have a system in place to help mortgagees stay current or pay down their mortgages ahead of schedule. This lack of education and support is a huge factor in the severity of the situation.


One piece of advice that Holm offers his clients is to believe the math. While some people lie, the math never does. By following the math, many of his clients are able to pay off their 30-year mortgages in a little more than a decade, in some cases even less.

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