Credit-cards

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

10 Ways to Have Fun with Finance

By Kate Hurdley, Personal Success Coach & Director of Inspired Excellence. (Adapted from financial strategist Belinda Cheong’s presentation at an Inspired Excellence seminar on wealth creation).

  1. Pay yourself first.

    There’s no other logical way to start creating financial independence and abundance. Commit to putting 10% (or as much as you can afford) into a savings account each payday, or after a windfall if your income is irregular. Become aware that expenses miraculously expand to fit the exact amount of money we have in our account, so hide a little bit away first, and your expenses will be none the wiser!

  2. Set a realistic budget – and spend less than you earn.

    Remember what’s important is not how much money you earn, but how you manage it. Those little things do add up, so plan your spending and you won’t get caught out. A twelve-month cash flow projection will help you understand and plan your financial situation. Make some changes to the way you manage your money. Things won’t miraculously change for you today, unless you do something different to what you did yesterday.

  3. Your credit cards are a cash flow tool, not a crutch.

    Stop contributing to the banks’ profits, and cut those cards up! Commit to only using your credit card if you’re short of cash, and then pay the whole thing off as soon as you are paid. If you’re only paying the minimum amount due each month, all you’re paying is the interest – which won’t make even a slight dent to the total! Think about reducing the credit limit on your credit card, and start getting that balance down.

  4. Accept that get-rich-quick schemes don’t work.

    Get educated instead. The key to financial wealth is understanding the planning and management process, understanding your spending patterns, and making a plan for yourself. Stop looking for a quick fix to your financial problems. Don’t invest in a scheme, invest in yourself! Start learning about yourself, your spending habits, finance, and investing. Build yourself a future.

  5. Find your own Unreasonable Friend.

    This could be a coach, a friend, or a colleague – anyone in your life who will be tough on you when you need it most, and will hold you accountable to your financial goals. Meet with this person once a fortnight and prepare to be questioned!

January 1, 2001