Tag: credit cards

Credit Card Reforms 2020

Post author By Christopher Riotto
Post date 24 April 2020

Credit cards can be great, but they can also cause bad debt.

It’s true that many of us have a love/hate relationship when it comes to our credit card. It’s great being able to swipe and pay with ease and offers so much convenience. At the same time, it is easier to spend above our means and get hit with a nasty bill at the end of the month that we may not have budgeted for. While credit cards can be really useful, they can also carry a heavy burden of debt with them. This is why credit card reforms are brought in; to help to protect you from sinking into unmanageable debt.

It is so easy to find yourself in a place of debt, with monthly fees added on top of your spending. The fact is, many people take out credit cards without being aware of how they work. For example, when are the fees applied and how can you manage things when you find yourself in a place of debt? For this reason, it is easy for people to spiral further and further.

Discover what changes the credit card reforms of 2020 have brought to the table and what they mean for you as a consumer.

Background for Credit Card Reforms 2020

The latest credit card reforms came into effect in January 2019.

In July 2018, ASIC released Report 580 Credit card lending in Australia. This found that more than one in six consumers is struggling with credit card debt.

ASIC’s review of credit card lending found:

In June 2017 there were almost 550,000 people in arrears. In addition, 930,000 people had persistent debt and an additional 435,000 people were repeatedly repaying small amounts.
Consumers carrying balances over time on high-interest rate cards could have saved more than $621 million in interest in 2016–17 if they had carried their balance on a card with a lower interest rate.
63% of consumers did not cancel a card after a balance transfer. A substantial minority of consumers increased their total debt after transferring a balance.

The report made it clear that ASIC expects credit providers to:

Take proactive steps to address problematic credit card debt and products that do not suit consumers.
Minimise the extra credit provided to consumers who regularly exceed their credit limit.
Allocate repayments for all credit cards in the more favourable way required for cards entered into after July 2012.

These are general expectations of lenders, however, they are not legal requirements.

In September 2018, ASIC (the Australian Securities and Investments Commission) set a three-year period to be used by banks and credit providers when assessing a new credit card contract or credit limit increase for consumers. This means that credit providers must not provide a credit card with a credit limit that the consumer can’t repay within three years.

The aim of the 2020 credit card reform is to:

Prevent consumers from entering into an unsuitable credit card contract.
Ensure consumers have access to suitable credit card contracts.
Make it easier for consumers to cancel credit cards.
Ban unsolicited credit limit increase invitations (which can lead to people borrowing above their means).

Credit Card 2020 Facts

Here are some credit card facts, sourced from finder.com.

There are 14,088,998 credit cards in Australia as of May 2020.
Netting a national debt accruing interest of $23 billion.
Average credit card purchase: $105.38
Average percent of credit limit reached: 29%
National Australian spend on credit card purchases each month: $25,023,743,718.
70% of Australian adults own a credit card.
Age groups with a credit card:
- 65.07% are 18-35
- 82.18% are 35-54
- 79.84% are 55+.

How Do Credit Reforms Work?

The three-year period was chosen by ASIC after consulting with several banks and industry bodies. The idea is to ensure that the provider of the credit card is comfortable that you can pay off your credit limit in three years, before approving your application.

Rather than stopping people from being able to take out credit, these credit card reforms 2020 are in place to stop consumers from getting into debt.

Here are some commonly asked questions when it comes to the credit card reforms 2020:

Can I still take out a credit card?

Yes! You will still have the flexibility to make a low credit card repayment each month. The three-year period was designed to help consumers needing larger loans to have longer repayment options available.

How do banks and lenders assess whether I can pay back my card?

Each institution will have its own processes in place for determining this. This may involve looking at your credit history, including your credit score, along with the current financial situation.

While these credit card reforms 2020 may result in some people not being able to take out a credit card, it is likely only to affect a very small number of people. Consumers are still welcome to shop around for the best deal when taking out a credit card. Hopefully now with the aim of being able to pay them back without getting further and further into debt in the process.

Want to know more about taking out a credit card and how to make the process as easy as possible? The team at Australian Lending Centre can help you out. Simply give us a call or fill out an enquiry form today and get yourself set up on the path to financial stability (and not debt). We can also help you to find out how you will be assessed when it comes to taking out a credit card.

Tags 2020, credit card debt, credit card reforms, credit card support, credit cards, guidance, help, responsible lending

Debt Management Credit Card Consolidation Financial Fitness

Strategies For Getting Your Credit Cards Under Control

Post author By Jack Richings
Post date 28 November 2019

Plastic money, where all you have to do is swipe a card and that product or service is yours. It’s great, right? Until you receive your credit card bill and realise you don’t have the funds to pay it off. Before you know it, the interest starts to soar and your credit score takes a whack. Don’t worry, you’re one of many to have fallen into this trap! Fortunately, there are ways of getting your credit cards under control before it’s too late.

Here are six ways for getting your credit cards under control

1. Pay MORE minimum monthly repayment

Or more, if you can afford it. You have three choices when it comes to making your repayments:

You can pay the full amount and take advantage of the interest-free period on your card.
Pay more than the minimum repayment to limit the amount of interest charged.
You can pay just the minimum repayment. This is the least recommended option, as the interest will build up. This may lead you into more debt down the track, which is hard to get out of.

2. Lower those rates

All it takes is asking! The fastest and easiest way to ensure you get back control of your credit card is to shave off a percentage or two on your interest rates. Even a small amount can save you hundreds when it comes to paying off your debt. Call up your bank and simply ask! Your credit score is likely to play a role in whether or not this will happen, but either way, it never hurts to give it a shot.

3. Pay down your HIGHEST rate card first

This one makes sense. If you have a few different credit cards that you are owing money on and you can’t afford to pay them all off, start with the one with the highest rate. This is also known as the ‘Avalanche Strategy’. Tackle the card with the highest interest rate first, while maintaining at least the minimum repayments on the others. Once you get the first one paid off, you can work your way down to paying off the rest.

This method ensures you pay as little interest as possible while making these payments and getting your way out of debt. As you work down through your debts, the amount you can put towards repayments on the next debt increases with each cleared debt – creating an avalanche effect.

4. Budget

If you don’t have one already, now is the time to put one into place. Factor your credit card repayments into your budget, so you stay on top of them. Look at how much you are spending each month on each one and compare this to how much you earn. If you are spending more than you earn, then it is time to cut back.

If you are already in credit card debt, then add this to your budget. Plan to pay a little bit off each week, to make sure you are working to an end goal. If you are in debt, then set aside your credit card for the essentials until you have paid it off.

To get a good look at your spending patterns, check out your credit card statements. From here you can assess where to make cut backs. Utilise a free online budget planner to quickly understand where your money is going.

5. Pay off Your Smallest Balances

Depending on how many credit cards you have, you could find yourself a little overwhelmed. Start small and work your way up. This one is known as the ‘Snowball Strategy’. The idea is that you feel so much better getting one card paid off fully. This will give you the momentum to tackle the next one and then another after that.

This positive cycle continues and ‘snowballs’ until all your cards are paid off and you are back in control again. Unlike the Avalanche strategy, you could end up paying more in the long run, as you are ignoring which cards have higher interest rates and paying them off based on the amount instead.

6. Have a goal

Whether your goal is to be completely debt-free, or simply to be on top of your repayments, it is important you have this goal in place when it comes to taking back control of your credit cards. To keep yourself accountable, it can help to talk to a close friend or family member, so you stay on track and don’t find yourself too overwhelmed in the process.

Taking back control of your credit cards will have you in a healthier position for some long term goals, such as travel or taking out a mortgage. Remember, start small and build your way up again and you will soon find yourself debt free and able to stay that way. Think next time you pull out that handy little piece of plastic to pay for something.

Tags credit card debt, credit cards, Debt Management, debt relief, pay off debt

Debt Consolidation

Credit Card Debt and Mortgages Being Managed Properly

Post author By Diane Challis
Post date 28 March 2016

This year has been a profitable one for Australian credit card debt and mortgages. According to the latest percentages, Aussies seem to be managing much better with their mortgages; their mortgage repayment appears to be going along much better than when compared with the previous year. Reports from the ABS data showed that their credit card debt had already dropped by 2.4% in January.

In the Money Survey from 2016, Mortgage Choice has discovered that at least ¼ of the respondents were faced with almost 12% month’s worth of wages in their offset account or going towards paying their mortgage. When compared to this situation, around 13% of Aussies claimed that they were facing this exact financial position somewhere around last year.

Aussies Can Now Manage their Credit Card Debt

CEO John Flavell has come to the realisation that today’s mortgage holders have become much more comfortable when it comes to dealing with their credit card debt. He also added that this isn’t surprising in the slightest since interest rates are currently standing at 60-year lows, which results in drastic mortgage repayments. This, in turn, makes it easier for homeowners to pay off their debts.

So, it seems Aussie cardholders have become used to managing their card debts, keeping it 34% lower in the month that followed Christmas. Average balances have gone from $77 to $3,114, and the conclusion was that the users are now savvier regarding the use of their credit cards. They are now paying off their debt before their deadlines and maximise their loyalty points by using their cards.

Australians have also become more imaginative when it comes to creating strategies that keep their balance down. They are now mostly opting for cards that have a 0% balance transfer, and thus they can pay off their balances without creating even more debt in return.

Ways to Manage Your Credit Card Debt

In case you were also wondering how to keep track of your credit card repayment, here are some money and credit card tips that could prove very useful.

Check your budget and see if you can make some extra mortgage repayments to lower your debt in interest which is going to get built up over time. Find a good strategy that would suit you, or look up for repayment calculators that will allow you to do the necessary calculations.
Make your next repayment a little higher than you normally do in order to lower your credit card debt. This way, you will be paying less interest.
Make use of features that are relevant to your home loan. Make extra payments to minimise the interest, then redraw the facility to make it convenient for you.

While managing your debts can prove to be difficult at first, with a little bit of research, you can find out ways to properly manage your mortgage and credit card debt.

Tags credit card debt, credit cards, money management, mortgage repayment, mortgages, savvy consumers

News Debt Management

Many Australians Are Turning to Debt Agreements

Post author By Diane Challis
Post date 4 November 2015

Debt agreements are an alternative to declaring bankruptcy. Rather than be haunted by the irreversible effects that bankruptcy can have on your credit record, entering into a debt agreement can give you a debt-free fresh start. They’re becoming the popular choice for Australians in need of debt solutions. Debt agreements are overseen by the Australian Financial Security Authority (AFSA). As a government body, it’s AFSA’s job to regulate debt agreement administrators, in order to ensure they are resolving debt at the highest standard possible. The AFSA has been finding an increasing number of Australians are turning to debt agreements to solve their debt problems.

Why So Many Australians Are Turning to Debt Agreements

Although a debt agreement is technically an act of bankruptcy as it is under the Bankruptcy Act of 1966, it is considered another option to going bankrupt. There are also many differences between the two, making one look like a much better option to thousands of Australians. A formal debt agreement will appear on your credit file for five years and can prevent you from obtaining further finance during that time.

The AFSA has reported that there were 28, 288 personal insolvency cases reported across Australia during the 2014-15 financial year. Additionally, their June report found that there was an increase of 4.3% for people who entered into Debt Agreements compared with the March quarter. That figure rose from 2,568 to 2,678. Of the Australians who entered Debt Agreements, only 7.7% of them were for business-related reasons, which suggest that the rest were personal debts like credit card debt from overspending.

The amount of Australians entering into debt agreements for personal reasons shows that as a nation, we frequently get over our heads in arrears. Whether getting into uncontrollable debt is due to living beyond our means or just poor budgeting remains to be seen. Debt agreements are for unsecured debts; unpaid credit card, telephone and utility bills. The Australian Securities & Investments Commission (ASIC) puts the nation’s credit card debt at nearly $32 billion, which works out to approximately $4,300 per cardholder. That’s quite a lot of unsecured debt. It’s no wonder people are having difficulty making repayments.

Debt agreements are for people without a former bankruptcy on their credit record, who want to pay back their creditors. Going through a practitioner who specialises in agreements, your debt is negotiated with creditors and merged into a big sum that you pay back over time. If you have a debt agreement, the interest is frozen and anyone you owe is no longer able to contact you to request payment. It takes away the multiple burdens of debt collectors sending letters and making phone calls.

If you’re in need of a solution to your financial burdens, fill out our enquiry form and find out how we can help you.

Tags australia, australian debt, bad credit, bad credit rating, bad debt, credit card debt, credit cards, Debt, debt agreements, debt assistance, personal finance

Credit Card Consolidation

How to Use Credit Cards to Your Advantage

Post author By Diane Challis
Post date 11 June 2015

Credit cards are known to be risky business for some people. If you have trouble balancing your budget every month then taking on a credit card or two should be your very last resort. If on the other hand, you are able to balance your monthly budget as well as save regularly then you are probably financially savvy enough to handle the responsibility of a credit card. Learn how to use credit cards to your advantage in this article.

Credit Cards – Tips and Tricks

Credit cards do generally have high interest rates on the balance that is left over after the pay period. If you always pay off your balance at the end of every billing period then you may be able to take advantage of the credit card. This is a huge convenience if you are short on cash just before pay day or if you have a big expense that your checking account cannot cover. It might usually take time to gather up the funds for that large purchase and if you pay off the balance when it is due then you have basically gotten yourself an interest free loan. You can look at it as a free loan from the time you made the purchase up until you pay it off. If the loan period is maximised then you could, in practice, get a 55 day loan without any interest.

You can have your credit card provider take the balance due directly from your savings account each month. Bypassing the tedious chore of transferring funds each month, you have essentially created an interest free form of cash available to you at any time. Any big surprises can be handled with the swipe of your plastic but this is all assuming that you can keep enough in your savings account to handle those payments.

If you are able to keep this balancing act going for long then you can take advantage of the incentives that some credit cards have such as points or cash back programs. A credit card with a good points program usually has a yearly fee. The fee can be outweighed by the big gains that can be made if you play the points game well. Having all of your purchases funneled through a points reward credit card can quickly grow your flight credits or give you big cash back returns. Some credit cards can also offer insurance on purchases. Even though all forms of credit including credit cards have risks, with discipline, the advantages can outweigh the risks.

Tags credit card debt, credit card debt consolidaton, credit cards, high interest debts

Short Term Loans

Short Term Loans vs Credit Cards: Pros and Cons

Post author By Diane Challis
Post date 11 March 2013
No Comments on Short Term Loans vs Credit Cards: Pros and Cons

Short Term Loans vs Credit Cards

Are you running short of cash? If you know how to make ends meet, you surely would find ways to overcome it without getting any debt. But if the need for money is drastic and necessary, you may not have any other choice but to apply for financing. For sudden and emergency needs, you may consider two logical and reliable options: short term loans vs credit cards. Which of the two should you choose? Let’s weigh up the pro’s and con’s of both.

Tags credit cards, loan, short term loan, short term loans

Financial Planning

5 Rules to Avoid a Bad Credit Score

Post author By Diane Challis
Post date 29 November 2011
No Comments on 5 Rules to Avoid a Bad Credit Score

These days, no one could be immune to possible bad credit. Many people are incurring either a job loss or a reduced income. Some just could not control their personal finances effectively. A bad credit score has become very common especially now that many consumers find difficulty in meeting financial obligations.
No one wants to incur bad credit. That is for sure. Getting a poor credit rating is like a curse. It could mean many other problems and difficulties. Bad credit could be a passport to higher interest rates and discrimination from banks and other financial institutions. Fortunately, incurring bad credit could be avoided. Here are five rules you could observe to do so.

Tags bad credit, bad credit score, consolidation, credit cards, credit score

Personal Loans Short Term Loans

Christmas Shopping – Common Spending Habits

Post author By Diane Challis
Post date 22 November 2011
No Comments on Christmas Shopping – Common Spending Habits

Christmas is undoubtedly a season for shopping. The spirit of the occasion is indeed in gift-giving. You may have to shop for all the presents you intend to give away. At the same time, you may want to shop for yourself and for your household.

It is not surprising that many consumers tend to overspend during Christmas shopping. That is because malls and retailers are doing their best to entice you to spend. Your shopping mood could be set on fire by the festive decorations. The special markdown sales and new items on the display could further persuade you to buy until you drop.

Are you ready to once again hear the cash register ring for your Christmas shopping? There are many tips you should first look at and observe. Here is a simple and practical list of the do’s and the don’ts when shopping for the season.

Tags credit cards, Debt, personal loan, short term loans

Financial Planning

Calculating your Net Worth

Post author By Diane Challis
Post date 24 October 2011
No Comments on Calculating your Net Worth

Your net worth could be an effective indicator of your financial condition. It could measure your annual progress financially. In general, the net worth is the overall sum of all your current assets or properties minus the sum of all your liabilities. This way, you could instantly and clearly see if your assets are still bigger compared to your liabilities, which is the ideal scenario.

Calculate your net worth to determine your current personal financial performance. Do not worry if you think you would obtain a negative figure. Instead, be positive about it and set effective goals to emerge out from the situation. It would surely be helpful and more advantageous if you knew your present financial condition. Furthermore, computing net worth is not as difficult as you think it is.

Tags credit cards, Debt, home loans, net worth

Debt Management

Tips to Avoid Debt this Christmas

Post author By Diane Challis
Post date 14 October 2011
No Comments on Tips to Avoid Debt this Christmas

Every year the Christmas holidays could be considered as the most expensive shopping season. That is because consumers usually spend so much during this period as giving gifts has been synonymous to the spirit of the season all across the globe. Of course, buying presents come with specific price tags.

Are you ready to once again spend a fortune this Christmas? You do not have to, if you would be more frugal to manage your money this holiday season. Do not spend way beyond your budget set for Christmas shopping. Otherwise, you may end up accumulating more debt that you would take care to repay months after the season. Here are five ideas on how to manage your money this Christmas holiday season so you would not end up being in debt.

Tags christmas, credit cards, Debt, debt help, debt relief

Credit Card Consolidation

Australia’s Credit Card Debt – What to Know

Post author By Diane Challis
Post date 19 August 2011
No Comments on Australia’s Credit Card Debt – What to Know

Australian consumers are now more cautious about their spending. They are now more inclined to increase their savings and clean up their credit card debts. This observation is according to financial experts from Bendigo & Adelaide Bank. They added that local households are now aiming to put their finances in better order due to the uncertainty about global economy especially after recent reports about credit woes in the US.
Australia’s credit card debt is proving to be interesting and conflicting.

Continue reading “Australia’s Credit Card Debt – What to Know”

Tags australia, credit card debt, credit cards, Debt, Debt Consolidation

Debt Management

Australian Household Debt Increasing

Post author By Diane Challis
Post date 28 July 2011
No Comments on Australian Household Debt Increasing

According to the latest household debt information from the Australian Bureau of Statistics, average debt for each household is now at $50,500. It is up to 34% higher compared to the household debt average on the preceding report. This clearly indicates that household debt across the country continues to rise.

It is sad to note that debt has now become a part of living. Needless to say, it contributes to daily stress in the lives of numerous Australians. It even affects overall health and happiness. To be able to fully understand rising household debt so that proper strategies could be employed to control it, there is a need to analyse the possible causes.

Tags consolidation, credit cards, Debt, household debt

Debt Management

Government Survey Gives Insight into Australian Debt

Post author By Diane Challis
Post date 24 May 2011
No Comments on Government Survey Gives Insight into Australian Debt

It seems Australians are not entirely money-conscious when it comes to entering into debt, as a recent Federal Government report has found. In this article, we take an insight into Australian Debt.

The latest survey conducted by the Financial Literacy Foundation has divulged details about the general attitudes towards credit and debts amongst the Australian population.

The nationwide survey found, 21% of respondents will get into debt by buying things they cannot afford, and 17% pay only the minimum amount owing on their loans.

Tags australian debt, credit card debt, credit card debt consolidation, credit cards, Debt Management

Debt Management

Australians Credit Habits Change

Post author By Diane Challis
Post date 23 May 2011
No Comments on Australians Credit Habits Change

Australians have been shifting from credit cards to debit cards when making purchases showing changing credit habits. The value of purchases and cash advances on credit and charge cards fell to $18.8 billion, 1.5% less in August than July.

However Australians are also expected to increase overall credit card debt as they become more confident about the economic recovery. This is evident as the total EFTPOS purchases and cash withdrawals rose 2.1% in the month of August.

This new trend is a positive movement, however some Australians continue to struggle to repay their debts, and one in five of those say that they are likely to apply for more credit in the upcoming months to Christmas.

Tags credit cards, debit cards, Debt Management, spending habits

Credit Card Consolidation

Goodbye to Plastic Credit Cards

Post author By Diane Challis
Post date 23 May 2011
No Comments on Goodbye to Plastic Credit Cards

The Banks are getting in on the green act. Be on the look out for the launch of biodegradable credit cards. Virgin Money has announced that they will be launching a credit card that is literally green, both in colour and biodegradable materials.

I’m sure your thinking, if only they made the credit card debt dissolvable too.

There are now new and innovative ways to improve your debt problems. If you are struggling to make your debt repayments, then read on to find out how we can help dissolve credit card debt, along with other debts.

Tags biodegradeable credit cards, credit cards, Debt Consolidation

Credit Card Consolidation

Eliminate Your Credit Card Debt

Post author By Diane Challis
Post date 23 May 2011
No Comments on Eliminate Your Credit Card Debt

When you are in over your head with credit card debt, relief can seem unreachable. It can feel as though you are working as hard as you can just to make the minimum repayments. If you are serious about getting on top of your finances, then follow these steps to eliminate credit card debt be on your way to financial freedom.

Step 1 – Switch to a lower rate card

If you can switch your balance from a higher rate card to a lower rate card, you can save quite a bit of money. Even a card with a 5% lower interest rate will make a difference on the amount you owe on your monthly credit card statement. The money that you have then saved can be applied to reduce your debt even faster.

Step 2 – Make lifestyle adjustments

Many people find themselves falling into the trap of only paying the minimum credit card payment each month, but if you make a habit of this you will never get out of debt. Figure out ways that you can cut out weekly spending, such as eating from home or preventing yourself from making that impulse purchase that you know is not a necessity. Once you can eliminate your unnecessary spending habits, you can use the money you save to make larger repayments on your credit cards, and see your way to becoming debt free faster.

Step 3 – Don’t add to your debt

Make yourself a rule that you can only use your credit card for emergency payments or special purchases. Don’t use your credit card to purchase needless items. You may think it is convenient to make impulse buys on your credit card, but realistically they add up and you can end up paying more for them in the long term.

Step 4 – Call Australian Lending Centre

If you have been unsuccessful with the above steps, there is still hope. You can eliminate credit card debt by calling Australian Lending Centre on 1300 138 188. Speak with a debt consultant today. We specialise in debt solutions such as debt consolidation, debt agreements, debt consolidation loans, refinancing, mortgages and bad credit loans.

We may be able to help you consolidate your debts such as credit cards and personal loans into one so that you will only need to make one regular repayment as opposed to multiple. We also have a solution available that can freeze your current interest and prevent any further interest and charges. To find out more, call 1300 138 188 today.

Tags credit card debt, credit cards

Interest Rates

Fake Cards Skimmed As Part of Scams in Melbourne

Post author By Diane Challis
Post date 22 May 2011
No Comments on Fake Cards Skimmed As Part of Scams in Melbourne

The Australian Lending Centre – a specialist in debt consolidation likes to provide their clients with useful information. Following is an example of some helpful info – which will relate to any person that uses an ATM.

Recently more than 5,000 ATM cards have been skimmed in just four weeks as part of an elaborate $500,000 scam.

The devices allegedly recorded details from swiped cards while a small camera filmed customers entering their personal identification numbers (PIN).

Tags card fraud, credit card fraud, credit card scam, credit cards

News

Credit Card Reward Program Can Increase Debt

Post author By Diane Challis
Post date 22 May 2011
No Comments on Credit Card Reward Program Can Increase Debt

Reward credit cards can be a great tool as they allow consumers to earn points on charges that can be turned into perks such as cash back, air travel and merchandise. According to the credit card companies, the more you spend the more you will get back in reward points; however this is not always the case.

A majority of people use credit cards as a tool to make purchases such as airfares, accommodation, concert tickets, and general online or over the phone payments. However for consumers who let the promise of perks drive them to overspend, a rewards credit card can end up costing them significantly.

Tags credit card debt, credit card debt consolidation, credit cards

Debt Management

Australia is a Cash Based Society

Post author By Diane Challis
Post date 22 May 2011
No Comments on Australia is a Cash Based Society

The Reserve Bank of Australia has conducted a recent study that indicates that Australia is still a cash based society. However it is not to be overlooked that the use of credit cards continues to rise.

The RBA study of consumer payment behaviour found that cash accounts for 70% of all transactions. EFTPOS, MasterCard, and Visa Debit Card payments make up 15% of all transactions followed by MasterCard and Visa Credit Card transactions at 9%. Only holding 1% of total transactions is American Express and Diners Club cards.

Tags cash out, cash society, credit card debt, credit card debt consolidation, credit cards

Credit Card Consolidation

Australian Credit Card Figures Increasing Higher Than Ever

Post author By Diane Challis
Post date 22 May 2011
No Comments on Australian Credit Card Figures Increasing Higher Than Ever

The total value of credit card and charge card transactions, including cash advances, rose by 9.6% in March this year. Australians spent $18.78 billion on their credit cards and charge cards in March, up from $17.13 billion the previous month.

In February total credit card and charge card balances outstanding fell by 1% to $44.358 billion, from $44.799 billion. The value of cash advances on credit cards and charge cards increased by 7.4% to $1.034 billion in March, from $963 million in February. The number of credit card and charge card accounts increased by 11,000 in March, while the number of purchases using credit cards rose by 13.3%.

Total credit card and charge card balances outstanding rose by 4.3% over the past 12 months, compared with an average of 12.6% over the preceding five years.

Tags charge card, charge cards, credit card debt consolidation, credit cards, Debt Consolidation

Credit Card Consolidation

Australian Credit Card Debt has Risen

Post author By Diane Challis
Post date 22 May 2011
No Comments on Australian Credit Card Debt has Risen

The rising levels of credit card debt in Australia reached record levels in 2011. However, the number of repayments aimed at reducing credit card debt drastically fell.

While facing rising unemployment and a looming recession, Australians cut back on their credit card repayments by 7.1% in February. Australian credit card debt grew by 1.7% to a record $45.4 billion, equating to an average debt of $3,149 for every cardholder in the country.

Tags consolidation, credit card debt, credit card debt consolidation, credit cards, Debt Consolidation

Credit Card Consolidation

Credit Card Spending was up in 2010

Post author By Diane Challis
Post date 19 May 2011
No Comments on Credit Card Spending was up in 2010

2010 saw Aussies coming out of the Global Financial Crisis (GFC) with their credit cards surging. In July, there was a banking report that stated we charged goods to our credit cards an astonishing 131 million times for the month. This figure is greater than any July in history and 3% higher than July 2009.

In addition to putting more on our cards, we are also being more careless about increasing our debt. In this same report in July, Aussies owed $47.8 billion which is approximately $3,268 per credit card. These figures were up 6.5% from 2009 or $159 per card. These are signs Australians spent 2010 thawing from the financial crisis and seem to be spending at a fast rate. If these figures continued in trend, Aussies may find themselves deep in debt.

Tags credit card debt, credit card debt consolidation, credit cards, debt consolidation options

Debt Management

Credit Card Debts Can Lead to Home Repossession

Post author By Diane Challis
Post date 11 May 2009
No Comments on Credit Card Debts Can Lead to Home Repossession

Home Repossession

A Brisbane couple lost their home valued at $315,000 over a credit card debt of only $8000. They only found out that it went to auction after the home was sold for $20,000 at a bailiff’s auction.

Legal Aid Queensland (LAQ) says it is just one of several cases of debt collection companies moving to sell homes at bailiffs’ auctions to recover credit card debts of any amount.

Since November, LAQ has handled five such cases, negotiating with creditors and stopping the auctions at the last minute in four of them. In one case a debt collection company tried to sell a home over a debt of only $850.

It has been reported that some major banks and multinational lenders are allowing customers to increase their credit card limits by as much as 40%. The Congratulations, You’re Pre-Approved report, commissioned by the Consumer Action Law Centre, said banks and credit card providers were using psychological tactics to trick consumers. The report called for law makers to consider banning, or at least restricting the marketing of unsolicited credit card limit increase offers.

If you receive a letter from your credit card lender offering you an increase on your credit limit, we advise you to think of the repercussions of getting in over your head before accepting. If you are currently struggling with debt there are alternative solutions to having your house repossessed.

We may have a debt consolidation option tailored to your situation. If you have debts of $10,000 or more, don’t wait another minute. Pick up the phone and call us today on 1300 138 188 and receive a free consultation with one of our debt consultants.

Tags credit card debt, credit cards, Debt Consolidation, home repossession, refinance

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