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General Discussion >> General Board >> Australia Wakes Up To A Credit Card Hangover http://www.ozpolitic.com/forum/YaBB.pl?num=1515615092 Message started by whiteknight on Jan 11th, 2018 at 6:11am |
Title: Australia Wakes Up To A Credit Card Hangover Post by whiteknight on Jan 11th, 2018 at 6:11am
Australia wakes up to $30b credit card hangover :(
Canberra Times January 10 2018 Jessica Wright is considering shifting her credit card debt to a balance transfer card with zero interest after a blowout over Christmas plunged the family finances into the red. The Brisbane-based woman is facing a predicament shared by many Australians – the nation collectively spent about $30 billion on credit cards in December. :( Ms Wright, 36, usually puts $4000 a month through a Coles Mastercard to earn Fly Buys points. But last month there was an extra $5500 in spending – she bought her parents flights to Hawaii for her mother's 60th birthday, bought Christmas presents for her three young children, and then the family's washing machine broke down. On top of that the household income slumped because her husband, the family breadwinner, unexpectedly had less work than usual. "I usually pay it off in full but there's no way it's going to happen this month," Ms Wright said. "There's a little bit of remorse because when I decided to buy the tickets for my parents, I didn't realise my husband's work would be all over the place – he usually earns good money but he had three weeks off over Christmas that we hadn't planned for so that made it hard. I knew it would be a struggle but not as bad as it got and the washing machine – well, I didn't see that coming." Ms Wright said it made no sense to pay high interest on the Coles Mastercard so she'd look for a balance transfer deal. She believes she can pay it off before the higher interest kicks in, as long as the interest holiday is longer than six months. Reserve Bank figures show a total $27.45 billion in credit card purchases for October 2017. Over the previous three years, December spending was on average 10 per cent higher than October of the same year. If that trend holds this year, the December spending on credit cards would have exceeded $30 billion. The Reserve Bank will release the official figures in February. Four out of five credit card holders plan to pay off their Christmas-induced debt in three months or less, according to a survey of 1450 Australians by comparison site Finder in December. One in five will take longer than three months to service their debt. Finder estimates the splurge could cost Australians $230 million in interest payments alone, taking into account a typical 55-day interest-free period. :( Graham Cooke, insights manager at Finder, said a balance transfer to a card with an interest-free period was a good way to minimise interest charges. "This over-reliance on credit cards in December means the cost of Christmas is carried well into the new year and could take a toll on household budgets throughout 2018," Mr Cooke said. "A balance transfer could give credit card holders the chance to make more headway on their outstanding balance, especially if they're having difficulty making repayments." Mr Cooke said there were more than 100 balance transfer cards offering zero per cent and more than half of them offered an interest-free period of a year or more. However, Gerard Brody, the chief executive of Consumer Action, which runs the Victorian side of the government-backed National Debt Helpline, urged caution. "Credit card debt is the number one reason people contact us for help with unmanageable debt," Mr Brody said. "For some people who can demonstrate the capability and discipline to pay the debt in full before the interest-free period is up, the balance transfer deals can work but in the main most people are better off taking steps to pay down their existing debt rather than taking on new credit. The problem is credit cards are a product where if the bank wins, the consumer loses." Mr Brody said there's a lot of marketing for credit cards at this time of year and the balance transfer cards can seem like a good deal, promising zero interest for a period of time, but it can exacerbate people's problems because most people don't pay it off before the interest holiday ends, and the cards then revert to high rates of 20 per cent or more. Another problem was people don't always close the previous card and then they wind up with two credit card debts. :( "We see people with four or five credit cards, sometimes up to $100,000 debt, which can be really stressful and cause a lot of anxiety especially if they get referred to debt collectors," Mr Brody said. He said it was free to call the helpline and speak to an independent financial counsellor. National Debt Helpline: 1800 007 007 |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by whiteknight on Jan 11th, 2018 at 6:17am
Did they put Christmas on the credit card? :(
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Title: Re: Australia Wakes Up To A Credit Card Hangover Post by The Mechanic on Jan 11th, 2018 at 7:09am
you will find that most of them are stupid leftwits...
next they'll want a banking RC because they can't handle their own finances... oh wait... :-/ |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by bogarde73 on Jan 11th, 2018 at 8:05am
Just another blip in the modern fantasy that you can have, indeed deserve everything you want whether you have the means or not.
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Title: Re: Australia Wakes Up To A Credit Card Hangover Post by issuevoter on Jan 11th, 2018 at 8:42am
Have not needed one in years. If I can't afford it, I don't buy it.
Just a thought: can you put life insurance or funeral insurance on a credit card? |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Yadda on Jan 11th, 2018 at 9:24am By the time we come to adulthood, every sensible person will have learned, that we always need to live within our means. It is a good philosophy to adopt in life. If you want something, and are unable to save the money for it, then you shouldn't commit buy it [until you can and have]. Common sense. Saving [money] for what we wish to buy, teaches us patience and self-restraint. Good personal qualities to aspire to, in every human being. antonym of patience impatience = = 1 having or showing a lack of patience or tolerance. 2 restlessly eager. antonym of self-restraint self-indulgence = = indulging or tending to indulge one’s desires. pander = = gratify or indulge 'Pandering' to their 'i want', is the 'accommodation' from others which so often, is seen in small children and very 'weak' adults. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 7:39pm issuevoter wrote on Jan 11th, 2018 at 8:42am:
Sure, and if you die before you pay it back it's an unsecured loan and your estate pays nothing. I'm looking forward to paying for my funeral that way. ;) I have a credit card, it's a handy thing to have but it should be used properly not as a "Hey! I've got 5, 10 or 20G to spend, yay!, gotta get down on Friday, weekend, weekend, party, party" |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Aussie on Jan 11th, 2018 at 7:48pm Setanta wrote on Jan 11th, 2018 at 7:39pm:
I suggest you get advice from a better qualified person than whatever idiot told you that garbage. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Gordon on Jan 11th, 2018 at 7:52pm issuevoter wrote on Jan 11th, 2018 at 8:42am:
Are you aware that a CC can be used as a financial tool which allows you to use the banks money for a month then the entire balance is swept clean automatically? I've never paid a cent in CC interest. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Sir lastnail on Jan 11th, 2018 at 8:14pm President Elect, The Mechanic wrote on Jan 11th, 2018 at 7:09am:
but isn't mal relying on mass immigration to apply for credit cards and fuel mal's fake services economy with more debt ? |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by cods on Jan 11th, 2018 at 8:21pm Setanta wrote on Jan 11th, 2018 at 7:39pm:
dont like that attitude at all.. I do hope you are not passing that on.... so many people dodging their obligations and someone else ends up picking up their bills....NOTHING is EVER FREE..... |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 8:36pm Aussie wrote on Jan 11th, 2018 at 7:48pm:
I got it from a friend who's wife died with CC debt in her name and no he didn't have to pay it back. It's unsecured debt, that's why the interest is so high. Feel free to share if you know better. edit: You may be right... https://blog.creditcardcompare.com.au/what-happens-to-credit-card-debt-when-you-die.php Perhaps she had no assets in her name and because it was not a joint card... Quote:
That last highlighted may be subject to a cost/benefit analysis on the banks behalf, I suppose. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Baronvonrort on Jan 11th, 2018 at 8:40pm Aussie wrote on Jan 11th, 2018 at 7:48pm:
Perhaps he should ask the taxi driver who frequents this forum. ::) |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Baronvonrort on Jan 11th, 2018 at 8:41pm whiteknight wrote on Jan 11th, 2018 at 6:17am:
I don't know how people can live without a credit card, do they let people like you on Newstart have Credit cards? |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Aussie on Jan 11th, 2018 at 8:49pm Setanta wrote on Jan 11th, 2018 at 8:36pm:
I may be right? I haven't said anything other than to tell you what you posted was rubbish. It seems you have now realised that yourself. I guess you must have asked Mr Rort's Taxi Driver. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Yadda on Jan 11th, 2018 at 8:58pm Quote:
I live without a credit card. I live with a DEBIT card. ....which draws down on money i have, in a linked account. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 8:58pm Aussie wrote on Jan 11th, 2018 at 8:49pm:
Bad guess, I'd trust google over a taxi driver any day. Still, mate's wife's CC debt was wiped, I suppose it wasn't worth their time on that one. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Karnal on Jan 11th, 2018 at 9:00pm Yadda wrote on Jan 11th, 2018 at 8:58pm:
Moslem, are you? |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Baronvonrort on Jan 11th, 2018 at 9:01pm Aussie wrote on Jan 11th, 2018 at 8:49pm:
I prefer Uber to taxis, they're cheaper cleaner and the drivers don't stink. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 9:02pm Yadda wrote on Jan 11th, 2018 at 8:58pm:
I have much more money in the bank than my CC limit but most is in higher(not so high these days) interest accounts and not linked to my debit card account(which pays no interest). It's convenient to have. I think I owe all of about $60 dollars on it at the moment. $147.82 DR and I paid $90 towards that today. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Yadda on Jan 11th, 2018 at 9:06pm Mattyfisk wrote on Jan 11th, 2018 at 9:00pm:
Har, har. It is to laugh! Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender. A person who borrows money is always in a form of 'bondage'. I am at liberty, and i am happy. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Aussie on Jan 11th, 2018 at 9:12pm Setanta wrote on Jan 11th, 2018 at 8:58pm:
It means the person with a CC debt who died had a bankrupt estate. Simple as that. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 9:15pm Aussie wrote on Jan 11th, 2018 at 9:12pm:
Or perhaps the cost of a court order and all the costs involved in chasing it was not worth it, cost/benefit, she was not a bankrupt. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Gordon on Jan 11th, 2018 at 9:21pm Setanta wrote on Jan 11th, 2018 at 9:02pm:
For people with a mortgage the best setup is to put all money in an offset then live day to day on the CC then the CC is cleared monthly. Even my meth dealer take visa |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Aussie on Jan 11th, 2018 at 9:23pm
Then, Setanta, they would have gone after the Estate (not him...he has nothing to do with it as I assume, a beneficiary.) As a matter of curiosity, what was in her Estate. What did he end up with....while you reckon the Bank just shrugged its shoulders and said, "Oh we'll let that one go."
(And cods is right by the way.) If there was anything in her "Estate" the Bank would have chased it. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 9:25pm Gordon wrote on Jan 11th, 2018 at 9:21pm:
The teacher who was the IT coordinator I used to work with most at the school did that. I don't have a mortgage. My CC is just a convenience. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 9:36pm Aussie wrote on Jan 11th, 2018 at 9:23pm:
She died of pancreatic cancer so by the time her time came they probably saw it wasn't worth the cost of chasing what they were after and she may not have had a lot left. I have no idea what she owed, I just know they didn't get it. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Aussie on Jan 11th, 2018 at 9:55pm Setanta wrote on Jan 11th, 2018 at 9:36pm:
Setanta, the Bank would not have had a clue what she died of or even that she was dying. I have no doubt your mate told you what you are repeating here, but the very strong likelihood is that she died leaving with nothing in her Estate, and that your Mate would not have even bothered worrying about dealing with her debts. There would have been no Probate, just a Funeral, and mail from the Bank sent back advising that she is deceased. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by miketrees on Jan 11th, 2018 at 9:57pm
This post Christmas torpor in our economy predates credit cards.
I remember as a fruit grower, you did not want fruit on the market after Christmas, you get nothing for it,,, the economy is taking a little rest. Also in a cruel twist of irony the quality of fruit after Christmas also improves markedly. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 10:03pm Aussie wrote on Jan 11th, 2018 at 9:55pm:
I have no idea what you are trying to pick on here Aussie, I'm sure the bank didn't know or care that she was dying. My point was perhaps the fact she died a slow death ate what she had and there was not enough to go after with the costs of taking it to court to get, let alone enough to pay the costs of lawyers to scrounge what they could from her dead bones. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by miketrees on Jan 11th, 2018 at 10:08pm not enough to go after with the costs of taking it to court to get, let alone enough to pay the costs of lawyers to scrounge what they could from her dead bones That is what happens in the real world |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Aussie on Jan 11th, 2018 at 10:12pm
Your point was...."perhaps".....??
No, Setanta, that's not where you started which was ........ the death expunged the CC debt and you can plan around that. Cods knew that was morally reprehensible, and I knew it to be atrocious advice from a legal perspective. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 10:19pm Aussie wrote on Jan 11th, 2018 at 10:12pm:
My post that cods responded to was tongue in cheek about paying for my funeral on CC and then dying. I don't owe any money and I have enough to be disposed of. The part about my mate's wife is true. I'm now considering just crawling off into a national park and let the emergency services find some bones to recover 12 months on instead. Got any legal advice on that? |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Aussie on Jan 11th, 2018 at 10:22pm
Sure. Want to pay for it?
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Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 10:23pm Aussie wrote on Jan 11th, 2018 at 10:22pm:
;D |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Gordon on Jan 11th, 2018 at 10:26pm Setanta wrote on Jan 11th, 2018 at 10:19pm:
If it'd Abo land, make sure you do a smoking ceremony first. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Setanta on Jan 11th, 2018 at 10:28pm Gordon wrote on Jan 11th, 2018 at 10:26pm:
I'll be sure to take a few numbers with me. Hmm. a 2 a 4 and a 3 should see me through. |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Carl D on Jan 12th, 2018 at 10:42am
The only card I've ever had is a Visa "Load and Go" card from Australia Post.
Cost me $6.50. No monthly fees or interest. It is actually a debit card so you must have the money available on the card (maximum $1000) before you can use it. You can use it exactly the same as a normal credit card (and the only reason I got it in the first place was to renew my British passport last year which you can only do online these days and you have to pay with a card). |
Title: Re: Australia Wakes Up To A Credit Card Hangover Post by Aussie on Jan 12th, 2018 at 9:29pm
Happens each year, at this time of year. Very noticeable slump in people using Cabs, and as also happens every year at this time.......payment by card shrinks, and cash is used. I like cash.
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