Credit-card-debt-2

Given Your Credit Card A Good Workout?

Yep, looks like most of us are in for a heck of a festive season credit card statement again! The Reserve Bank has quoted that we racked up a cool $18 Billion over last year’s festive season and this year is shaping up to top that. They also revealed, $50 billion in credit card debt is being paid off by 15 million Australians. Glad I’m not paying that hefty sum off on my own!

So what are we going to do about it? Let’s get real, we’re probably just going to keep spending, hey. Luckily, there‘s an Aussie company out there, called RateSetter who are the first and only company in our fine land, who provide peer-to-peer leading to everyday Aussies.

These guys actually want to help us by reducing interest rates for festive season spending and have provided some quirky and entertaining financial tips to downsize your debt. Imagine a January credit card statement of zero! Sounds too good to be true, but Ratesetter reckon their financial fitness plan will steer you in the right direction.

‘Weigh yourself’ to assess how financially (un)healthy you are

Take a minute to assess your financial health. Be realistic with yourself to determine the health of your finances. Will your wallet benefit from some fin-tervention? Often, the first step to financial recovery is acknowledging the state of your debts.

Trade in your personal trainer for a financial planner

Consulting an independent professional before undertaking a new financial regime is a worthwhile investment in your long-term financial health plan. Get someone to cast an expert eye over the big picture of your financial fitness – including your credit card debt – and you’ll find that you can put their in-depth knowledge and professional skill to work.

Take a finance detox and stay away from ‘junk food’

Whilst it’s called the ‘silly season for a reason, consider detoxing your wallet by cutting out non-essentials like take away food, bottled water and that daily coffee. It’s amazing how much small purchases we all consume, actually mounts up to over a year.

Get finance app friendly

Take advantage of the many free budgeting apps available on smartphones and tablets. These are perfect tools for those who want a little daily assistance to keep on track.

Making sure that ‘hidden calories’ aren’t blowing out your financial diet

Are your interest rates sabotaging you? If you’re struggling to get back in the black, it might be time to review what your credit cards are really doing to your financial diet. Try considering ‘healthier’ alternatives to credit cards, such as a peer-to-peer personal loan where you get to determine your own preferred rate. You can consolidate your credit card debt and pay lower interest rates with a peer-to-peer loans.

Sounds almost achievable hey? So if you want more information on peer-to-peer loans to reduce your festive season debt and to get some home grown, Aussie financial advice check out RateSetter.com.au.

Image via google images

January 6, 2015

5 Ways to Get Your Finances in Order (For Good!)

Most of us resolve to get our finances in order at the start of a new year (along with our diet, health, relationships…) but how many of us see that through? Well, maybe this is the year you take control and whip your finances into shape.

While growing your savings is no easy feat, a little bit of careful planning, teamed with a strategic budget, can go a long way towards helping you reach your financial goals in 2014 and beyond, whether that be paying off your credit card debt,  reducing your mortgage, or saving for a holiday or your first home.

Mortgage Choice spokesperson Jessica Darnbrough offers a few money saving tips and real-life pointers to help us stick to our financial goals this year.

1. Avoid unnecessary extras and costs
Evaluate your regular outgoings and identify any unnecessary costs which you can cut down or cut out. Cutting back on guilty pleasures like takeaway coffees, Friday night takeaway or premium television packages can lead to significant savings in the long term.

2. Think small when budgeting
Planning ahead with your finances for a full year can be daunting, and ultimately, ineffective. Instead, budget monthly or in accordance with the length of your pay period. This will allow you to amend your budget fairly quickly if you over overestimate or underestimate certain expenses.

3. Update your savings account
Research the benefits offered by savings accounts across various financial institutions. Switching banks and opening a new account with a lending institution that offers lower fees and higher interest rates will allow you to save more in less time.

4. Pay off and cancel your credit card
Credit card interest rates are notoriously high. Constant use without complete payment at the end of the month can lead to significant debt. Many people get stuck using a credit card and struggle to break the cycle as interest continues to accrue. Make paying off your credit card a priority early in the year, and cancel it as soon as possible. Debit cards are an ideal alternative, providing a similar level of protection for online and over the phone purchases, without the significant interest rates.

5. Compare to find a better deal
You may be paying more than is necessary on your home loan, insurances, utility bills, etc. Comparing your options via your mortgage broker or websites such as HelpMeChoose.com.au can help you find the best deal suited to your needs and save you money in the process.

For more budgeting tips and home loan options visit www.mortgagechoice.com.au.

What are your best money savings tips? Share them in the comments!

January 13, 2014