Tag: credit card debt consolidation

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News

Credit Card Debt Growing in Australians Aged Between 34 – 54

debt consolidation loan

It is no surprise that Australian consumers between the ages of 34-54 have been cited as the biggest contributor to the near-record Australian national credit card debt. Half of the surveyed group named as Generation X which comprised of 1200 Australians admitted that they made up to three unplanned purchases using their credit cards each month. The research also showed that Generation X Australians are the least likely to pay off their credit card purchases in full each month. The effects of this is evident in the $51 Billion credit card debt in Australia, $33 billion of which is accruing interest, costing consumers more than $540 million a month. That is a whole lot of money being wasted on interest charges and the individual debt contributing to the national debt on credit cards.

The credit card debt growth in majority of Generation X is growing at an alarming rate. More and more Gen X Aussies are racking up credit card debt and not making regular repayments. In the end they get bad credit ratings and the only viable solution is debt consolidation. This process can help eradicate bad debts and in the long run increase credit rating. It is clear that Australians need help in order to stay financially stable. Although this sounds like a dire situation there is hope; there are a lot of consolidation companies who can help re-align finances.

Credit Card Debt in Gen X

Generation X probably has the most number of financially troubled people in it. It may be because of the financial burden they carry on their credit card debt. This is in fact the age group where credit card use has been most rampant and has done so irresponsibly too. This is also the group that is currently in extreme need of debt consolidation loans. Why opt for debt consolidation? Because new loans may result in a lower interest rate which means lower payment on your part. This also means it will be easier to pay off old debts and repair credit rating in the process. Getting a debt consolidation loan is where you will take out a new loan to pay off a number of other debts you have made in the past. It is undoubtedly a good solution to a bad credit problem. The process may be a little confusing so it is best to seek the help of professionals who have extensive experience in help out people with bad debts, especially credit card debt.

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Debt Management

Government Survey Gives Insight into Australian Debt

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.

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News

Credit Card Reward Program Can Increase Debt

credit card trap

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.

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Debt Management

Australia is a Cash Based Society

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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.

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Refinance and Refinancing

Borrowers Refinance While Rates Are Still Low

borrowers refinancing with low rates

With interest rates broadening between loan providers and some borrowers feeling frustrated with a lack of customer sympathy from their lender, now is the perfect time of year to decide whether you can work within the features of your current mortgage to improve your cash-flow, or if you’re better off opting to refinance to a new home loan that better meets your needs today.

When considering whether the time is right to refinance, it’s important to know that there are a range of options that mean you can save over the long term.

Refinance Options:

  1. Refinancing to a lower interest rate than you presently have. It goes without saying that a lower interest rate means you will save money, but also consider the Reserve Bank of Australia will most likely increase interest rates again in the coming months so grabbing your opportunity of a lower rate now is sensible.
  2. Switching to fortnightly payments instead of monthly, which not only lessens the impact of paying one large lump sum each month but also means your home loan will be paid off sooner.
  3. Refinancing can also include consolidating any credit card debt, store card debt and personal loan debt (which is accumulating high interest) into your mortgage. Refinancing these debts into your new home loan will allow you to concentrate on paying off one lower interest loan and can possibly save you thousands.
  4. Refinancing can allow you to switch to, or from a variable or fixed rate home loan. You may want to take advantage of a low variable rate while it’s available, or perhaps you would prefer to lock in an interest rate you’re comfortable with by choosing a fixed rate which can reduce the risk of higher repayments in the future.
  5. Another option is directing any savings from other accounts into your mortgage, consequently lowering the principal and reducing your repayments.

Another reason many Aussies are choosing to refinance is to gain access to the equity in their homes. This can be done for a variety of reasons, but commonly people are unlocking their home equity to renovate, purchase an investment property, take a holiday, plan a wedding, purchase a vehicle, pay some outstanding bills or simply to have some extra money to play with.

Another end of financial year is upon us, so if you can benefit from refinancing, now is the time to get your financial affairs in order. Simply fill in an enquiry form to your right or contact one of our refinancing consultants today on 1300 138 188.+++