Australian personal finance news, tips and advices.
by George
With the end of financial year upon us, so much attention surrounds how to get the most out of your tax, but there is real merit in planning all year round and saving important dollars too. It’s not just about saving at tax time!
Rate Detective CEO, Damon Rasheed (former economist for the ACCC) has some great tips on how to start the new financial year smarter, healthier and with peace of mind. Remove the stress of 30 June by using Damon’s advice to ensure your finances are in shape. ... (read more)
by George
Compensation for this post was provided by Choosewell.
The private health insurance industry has found itself in a bit of a pickle after customer advocacy group Choice recently ousted several major providers as proponents of ‘junk’ health insurance policies. Arguing that these policies represent a complete waste of money for consumers, Choice has demanded attention from the Federal Government. ... (read more)
by George
Anyone who has ever borrowed money knows it can be hard to pay back at times. However, borrowing is a bridge most of us need in order to quickly get ahead in life. Personal loans are the fastest means of acquiring funds for a range of purposes, but the first criterion is your ability to make the loan repayments on time.
If your earnings or income are high and you have a clean credit history, a personal loan will usually be approved. People on lower incomes need to tailor their approach to repayments that are make-able. You will need to provide evidence of current and ongoing expenses, revealing enough disposable income to furnish the loan and thrive . There are other stipulations, including Australian residency requirements, that will affect the application. ... (read more)
by George
This post is a response to Saundra Latham’s great article about the best home equity loan rates for 2016 (US), posted on the The Simple Dollar.
Paying off a mortgage results in more than just owning a home. The value of your home is a form of savings that provides negotiating power for other loan arrangements or investments. For many people, the downside of making regular mortgage repayments is the lack of ready cash or additional savings potential. A home equity loan can provide the solution, by allowing home owners to borrow money against the value of their home. This money can be used for any number of home improvements or other purposes. ... (read more)
by George
In essence, it would seem that getting a credit card is easy. After all, credit card company representatives are out and about on the streets and in shopping malls signing up new customers all the time. However, filling out the form is only the first step, and your credit score will be used to determine if you are actually wanted as a customer. So, what credit score is actually needed to get a credit card? ... (read more)
by George
In 2014, changes were introduced into credit score reports. History regarding personal loans is now scrutinised more thoroughly by lenders, meaning that if you have successfully paid off a personal loan on time and on schedule it will positively affect your credit score. On the other hand, defaults or recurring late payments will reflect badly on your credit score.
The changes to the system provide a more comprehensive overview of an individuals capacity for sound money management. Rather than only negative ‘black marks’ showing up on the credit report, positive information is also taken into account. Lenders and service providers will take previous financial management into consideration. ... (read more)
by George
For most of us, purchasing a house and a car are two major situations where borrowing money is essential. They are significant financial outlays that require dedicated effort to pay off over a long period of time. Banks and other lending institutions rely on our credit score for approval of loans, so what credit score is needed to buy a house or car?
Credit scores are the safeguard banks use to protect themselves against the possibility of loan defaults. They are based on a range of data related to the borrowers previous financial accountability and present financial status. Whether we like it or not, our credit score is a personalised risk assessment, and involves disclosure of both good and bad financial dealings. The positive and negative are taken into consideration for our individual credit score. ... (read more)
by George
Paying off a home loan mortgage takes a dedicated effort over a number of years. During this time your personal circumstances might change, finances could fluctuate, and lenders will vary their interest repayment rates according to financial markets. As a borrower, you may be on the lookout for a better deal, but there are a range of factors to consider before moving ahead and refinancing your loan. ... (read more)
by George
For most people, buying a home is the most significant financial investment they will make. A sizeable loan is usually required, and repayments are generally spread out over many years. Therefore, it’s important to also invest a little time into understanding your options and getting a deal that suits you. Let’s begin by learning the basics of how a home loan works.
Before discussing the different types of home loans it will help to understand what all home loans have in common. ... (read more)
by George
Modern Australian households typically involve both parents engaged in occupations outside the home, or a single parent working full or part-time in order to make ends meet. The Australian Government provides Paid Parental Leave for parents or primary carers of newborn children. Paid Parental Leave can be provided for up to 18 weeks.
Paid Parental Leave is available for the primary carer (usually the birth mother) of a child. You will need to meet Australian residence requirements, and earn less than $150,000 during the year prior to the date of the child’s birth. If you are employed, you will need to be on leave or not working for the duration of your Paid Parental Leave. You will also need to satisfy the work test requirements. ... (read more)