Pay off credit card debts first
Paying down debt is the best protection you can give yourself and your family in uncertain economic times. Debts with high interest rates, such as credit cards should be paid down first. Keeping an emergency stash of cash is advisable, either in a high interest online savings account where interest rates of seven per cent can still be found. Another more tax effective option option is to put the emergency cash into an offset account linked to the mortgage. An offset is often safer than putting savings directly into a mortgage with a redraw facility because if you lose your job, the bank can, under certain circumstances prevent you from accessing the extra repayments.
Source: Sydney Morning Herald