Aussie banks ‘have underestimated the cost of living’
Posted on July 10th, 2011
Banks in Australia are seriously underestimating the cost of living when they approve credit cards and other products for their customers, new research has suggested.
A report by Bank of America-Merrill Lynch and cited by The Australian shows that lenders have relaxed their criteria for borrowing money following the global economic crisis in a bid to once again boost spending.
However, while the Poverty Index states that the average monthly expenditure for an Aussie couple is $1,814, the banks had predicted the figure would be closer to $1,708.
This could lead to more people to head online to compare credit cards as they may be more likely to be approved for a larger amount of credit.
Matthew Davison from Bank of America-Merrill Lynch said lenders approving credit cards and mortgages have clearly not been considering the impact of more expensive fuel, food and healthcare on consumers.
“We think banks lend too aggressively against living costs,” he added.
This is despite people looking to compare credit cards being told earlier this month by the Federal Treasury and the Australian Bureau of Statistics that Aussies now have more money and less debt than ever before, the AAP reported.
Tags: Cost Living, Living
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PlayStation users urged to stop their credit cards
Posted on July 9th, 2011
PlayStation owners in Australia may want to go online to compare credit cards after the New South Wales (NSW) Police fraud squad warned customers to cancel their plastic.
Sony revealed that hackers stole personal data, which may have included credit card details, for up to 77 million people.
Among the details taken were names, addresses, email addresses, birthdates, passwords and logins.
NSW police detective superintendent Col Dyson told the Sydney Morning Herald that with enough information, fraudsters could do almost anything that a legitimate person could.
“Personal or financial information is a valuable commodity and generally these days we find organised groups harvesting information and then selling it to other groups to use,” he warned.
Those affected by the security breach may want to consider taking the opportunity to compare credit cards and opt for a different deal.
This comes after Police Credit Union marketing manager Christie Brock told Your Mortgage that people buying goods online should take care to protect their details.
Tags: Cards, Credit Cards
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Chase Enhances Features of the AARP Visa
Posted on July 4th, 2011
Of all the major credit card companies, none seems more determined to improve their products than Chase. For well over a year, Chase has been rolling out new credit cards, revamping their Ultimate Rewards system and tweaking the features of existing cards to align them with the interests of cardholders. This has led to new products like Blueprint, Slate and Chase Sapphire as well as substantive changes to existing cards like the Chase AARP Visa.
In the case of the AARP Visa, Chase opened up a dialogue with AARP members to isolate the features and benefits that mattered most to cardholders. Using insights collected from online Q&A sessions, focus groups and visits with AARP members, Chase revamped the AARP Visa so that it better reflects the needs and wants of those who use it. Read full post…
Tags: Chase, Chase Enhances
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Aussies to use credit cards to buy drive-through groceries?
Posted on July 3rd, 2011
People looking for more convenient ways of doing their shopping could find using their credit card to pay for their goods online and picking them up at a drive through may save them time and effort.
News.com.au reports that Coles has begun trialling a system to use its petrol stations as a pickup point for customers who have bought their goods over the internet and paid with a debit card.
Customers using the Click and Collect scheme would be able to visit the forecourt of one of 620 stores nationwide that are participating to collect their groceries between 15:00 local time and midnight.
Trails have already begun and the company will make a decision whether to expand the service in the next six months.
General manger for online at Coles Keith Louie told the Australian Financial Review that it could potentially “change the way people shop”.
Those who use credit cards for the service may also be looking to reduce the amount of debt they carry on their plastic, as according to the Australian Debt Study, 60 per cent of people will look to pay off some of their outstanding charges in the next six months.
Tags: Credit, Credit Cards
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Moben, then Habitat and Jane Norman: How to get your money back
Posted on July 2nd, 2011
Thousands of customers are in shopping limbo waiting to hear if they will get their goods after big name stores have gone under. We explain how to protect yourself when buying – either with a credit card or debit card.
Fashion chain Jane Norman is the latest firm to feel the brunt of the retailing downturn, as it fell into administration earlier today.
Last week Habitat and HomeForms Moben Kitchens announced their exit from the UK high street with financial troubles of their own.
The news left thousands of customers in shopping limbo as they wait to hear if the stores will honour their deposits and deliveries.
But what happens when a shop goes bust and youre waiting for your order? We explain how to protect your purchases.
Where could there be problems?
When you order big ticket items, such as sofas, TVs and kitchens you are often expected to stump up a deposit and given a delivery date, sometimes more than six weeks away.
Tags: Get, Get Money
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Debit card users ‘should try dollar-cost averaging when travelling’
Posted on July 1st, 2011
Aussies who are planning to use their debit cards while overseas may want to protect themselves against fluctuations in currency values by trying dollar-cost averaging, according to one expert.
Finance writer Anthony Keane noted in an article for National Features that purchasing money for a trip abroad all at once or relying on ATMs can be a risky option.
“Borrow a strategy common to the investment world,” he advised: “Its called dollar-cost averaging and basically means buying a bit now, a bit more a bit later, and a bit when you go.”
He explained this spreads the risk and means jetsetters are unlikely to be stung by any unexpected drops in the value of the Australian dollar.
By having currency purchased at a variety of different times, Aussies can still take out money using their debit card while overseas if they wish, but will not be caught unawares if something unforeseen happens.
This comes after credit union Community CPS Australia warned travellers using their debit cards abroad not to purchase goods or services using public computers because of the risk of online fraud.
Tags: Averaging, Debit Card
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