Archive for the ‘Debt Management’ Category

New rules for credit cards: what do they mean for you?

By admin • August 3rd, 2020

The name John Biggins may not sound familiar, but the banking industry has much to thank him for. Mr Biggins, a Brooklyn banker, was the brains behind the very first credit card in 1946. Known as the Charg-It card, it led to Diners Club membership cards and store cards, revolutionising the way everyday people shopped. […]

The relationship between interest rates and housing affordability

By admin • August 3rd, 2020

It goes without saying that homebuyers love low interest rates. The lower the interest rate the less the mortgage repayments on a particular house, right? Well, maybe. Lower interest rates also mean borrowers can service a bigger loan. In a competitive housing market that can push up prices, as we have witnessed this past decade. […]

Switching home loans

By admin • April 28th, 2020

Refinancing your home loan to take advantage of a lower interest rate might save you money. Before you switch, make sure the benefits outweigh the costs. If you’re struggling with your home loan repayments, see ASIC Moneysmart website’s “problems paying your mortgage” article for help. Before you decide to switch If you’re thinking about switching […]

5 ways to benefit from record low interest rates

By admin • January 24th, 2020

Interest rates have never been lower, and it’s possible they might fall even further. This creates opportunities for householders and businesses, so how can you best take advantage of low interest rates? 1. Pay off your debt more quickly By maintaining constant repayments as interest rates fall, you’ll reduce the time it takes to pay […]

Is paying your mortgage off quicker really the best option?

By admin • January 8th, 2020

Not so long ago one of the most effective, low risk wealth creation strategies was to use spare savings to pay down a mortgage, either directly or via the well disciplined use of an offset account. If your mortgage interest rate was 8% per annum, that’s the effective, after tax investment return this strategy delivered, […]

How much Income do you need in Retirement?

By admin • July 2nd, 2019

Many people will say that they are dreaming of retirement, but some are not taking the necessary action to make it a reality. In fact, there are not too many people who know the answer to a straightforward question: How much income do you need in retirement? Let’s take a look at what the Association […]

Buy now; pay later; manage carefully

By admin • November 28th, 2018

Before heading off on an overseas holiday, Sam decided to buy an expensive new camera to document his travels. The camera store offered a ‘buy now, pay later’ option, and attracted by the ‘no interest’ promise of the credit provider, Sam signed up. All was well to begin with. Sam had a great time on […]

Are falls in interest rates good or bad for homebuyers?

By admin • May 30th, 2017
Are falls in interest rates good or bad for homebuyers?

A fall in interest rates is usually greeted with delight by homebuyers. The lower the interest rate the less the mortgage repayments on a particular house, right? Well, maybe. However, lower interest rates also mean borrowers can service a bigger loan. In a competitive housing market that can push up prices. So, what’s really going […]

Tap and go – is it too easy to use our credit cards?

By admin • May 30th, 2017
Tap and go – is it too easy to use our credit cards?

Talk about hammering the plastic. In November 2016 Australia’s 16.7 million credit card accounts were used to make 226 million transactions with a total value of $27.8 billion. We are currently paying interest on $32.2 billion worth of credit card debt, running up an annual interest bill of over $5.6 billion (that’s $5,600,000,000!). It’s not […]

Super or the mortgage?

By admin • November 29th, 2016

Many people wait until their home loan is paid off before investing more in super. However, if you are currently making more than the minimum home loan repayments, you may be better off when you retire if you make additional super contributions instead. Why super? There are two key reasons why topping up your super […]

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