Should you give your teenager a credit card?

Should you give your teenager a credit card? We live in a culture of smartphones, WIFI, home delivery, online shopping and online gaming, where most needs and wants can be met almost instantly. With so much temptation to spend, it’s vital to teach your kids the money skills to help them enjoy financial wellbeing as adults.     One of these key skills is learning how to deal with debt responsibly. Researchers from Cambridge1 University found …

Oliver’s Insights – Magic money tree – QE & money printing and their part in the coronavirus economic rescue

Oliver’s Insights – Magic money tree – QE & money printing and their part in the coronavirus economic rescue Key points Central bank support to ensure the flow of money and credit through economies is an essential part of the global and Australian coronavirus economic rescue. This has increasingly involved quantitative easing which entails the printing of money. Higher inflation is an obvious risk from money printing, but it’s unlikely to become an issue until …

6 ways to reduce your credit card debt once and for all

6 ways to reduce your credit card debt once and for all Here are some tips to start paying off your debt $45 billion. That’s how much Australians owe on their credit cards.i Now, perhaps that’s no drama if we’re not paying too much to access credit and we’re managing to avoid interest charges by paying back what we owe on time. But we paid a collective $1.5 billion in fees in 2016-17.i And we’re taking …

Debt – just how big a problem is it?

Debt – just how big a problem is it? Recent figures show personal debt levels in Australia are among the highest in the world. So does this mean we’re heading for a debt disaster? Or are we doing the right kind of borrowing to get ahead with finances? Find out what kind of debts can be a problem and how to keep borrowing within safe limits. Top five in the world for debt In Australia, …

Credit rating myths busted

Credit rating myths busted With the introduction of mandatory Comprehensive Credit Reporting for the big four banks from 1 July 2018, it’s more important than ever to know what’s going on with your credit score. Find out just what a credit score is all about and what to do if you run into problems with yours. What is a credit score? Also known as your credit rating, your credit score is based on a report …

Borrowing money: When and how to do it right

Borrowing money: When and how to do it right We all know getting into debt isn’t really desirable. So are there times when borrowing is justified? And what’s the best approach to keeping repayments within reasonable limits? We spoke to CFP® Sandy Hopps  to get expert advice on smart ways to borrow money. Recent reports and statistics show we’re no strangers to debt in Australia. According to OECD data from 2015, Australia is 4th in the world …

Personal debt – maybe the mortgage isn’t so bad

Personal debt – maybe the mortgage isn’t so bad Household debt in Australia is high but more of us are taking a sensible approach to debt management. Nationally, our household debt ratio is nudging 200%. On paper it means we owe twice as much in debt as we bring home in our pay packets each year. It sounds like an alarming figure but as 74% of all households have some level of debt, the reality …

Australian’s love affair with debt – how big is the risk?

Australian’s love affair with debt – how big is the risk? Key points Household debt levels in Australia are high compared to other countries and still rising. The rise is not as bad as it looks because its been matched by rising wealth and debt servicing problems are low. However, this could change as interest rates rise and if home prices fall sharply. The trigger for major problems remains hard to see but its worth …