The Reserve Bank wants you to splash out.
It recently cut the official cash rate to 1 per cent, a bigger drop than many had predicted.
The idea behind the reduction is that it will flow through to lower interest rates, which will give people more money in their pockets to spend, which will then help to boost the economy and stave off a possible recession or downturn.
It works to an extent — floating home loan rates dropped immediately and fixed rates have started to move down, too. Many people will now be facing smaller payments on at least some of their debt.
But while the idea of spending more to boost the economy is a good one, and good advice at a population level, it's not such a great plan for individual households.
When there's the potential for a slower economy, it makes sense to pay down as much debt as you can.