Aussies turn their backs on credit cards
AUSTRALIAN households are turning their backs on credit cards, wiping
debt racked up on plastic by more than 10 per cent and cutting the number of cards they own.
The average household slashed credit card debt by 14 per cent and trimmed their cards from 2.1 in the third quarter of 2010 to 1.9 in the fourth quarter.
Australian shares sitting in the cellar
AUSTRALIAN shares have not performed as well as most other major overseas markets during the past five years.
This is despite our economy cruising through the global financial crisis.
A Your Money analysis of five-year share market investment returns of 10 key markets puts Australia firmly in the bottom half of the list, with the All Ordinaries Index of our 500 biggest companies climbing only 3 per cent for the entire period.
Housing Market Conditions Expected to Worsen
HOUSING market conditions are expected to worsen over the next 12 months, following last year’s interest rate rises and ongoing tight credit conditions.
The National Australia Bank Residential Property Index for December fell to 27 points, down from 44 points in November. It was still above the zero level that separates growth from contraction.
Westpac remains the favourite business bank
WESTPAC remains the nation’s favourite business bank, but customer satisfaction across the big four lenders has waned since the November interest rate rise, research shows.
Commonwealth Bank (CBA) edged ahead of Westpac to become the most favoured bank by large businesses with an annual turnover of at least $50 million, DBM Consultants’ monthly nationwide survey of businesses found.
Possible Rise on Cost of Living In Australia
DUE to a lack of savings, up to 3.7 million Australians won’t be able to cope if the cost of living rises, a survey shows.
And they are already struggling to make ends meet and have little to no savings, according to the Suncorp Life Confidence Index.
They believe their household budget will not allow for any increases in living expenses.
Chasing the Best Rate
REFINANCING your home loan can lead to greater happiness and a better quality of life, a recent survey shows. The survey of 1000 people was undertaken by Woolcott Research for non-bank lender RAMS Home Loans.
Yet a poll by rival ING DIRECT over the same period found mortgage exit fees were the greatest deterrent to refinancing for a significant number.
Queensland Government Says Funds Directed to the Most Needy
QUEENSLAND flood victims are likely to face strict asset and income tests to be eligible for major payments from the Premier’s Disaster Relief Appeal.
Former Treasurer David Hamill, chair of the relief appeal distribution committee, yesterday said the money needed to be directed towards those most in need, reported The Courier-Mail.
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Back-to-school savings
PARENTS can save almost 10 per cent on expensive schoolbooks and stationery if they do their homework.
A (Herald Sun) Public Defender survey found buying stationery at chain stores, and textbooks online instead of through schools’ book lists, can save $50 on a $600 bill for a typical year 8 student. Parents were increasingly turning to discount chains, Office works spokesman David Oakley said.
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Possible Increase of Interest Rates After Crisis
• Flood puts pressure on inflation, wages
• Upward inflation trend poses higher risk of rate rise
• Inflation rose above RBA’s target in December
THE flood crisis threatens to aggravate Australia’s pressure-cooker economy, fuelling inflation and all but guaranteeing a rise in interest rates.
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$5 Billion Worth of Loans at Risk of Default
THE Queensland floods crisis could put nearly $5 billion worth of mortgages and commercial loans at risk of default, as the financial fallout mounts from the worst natural disaster in the state in nearly three decades.
A report from Goldman Sachs has found there could be defaults on $4.1 billion worth of home loans, which equates to 16,500 homes, in the state’s south east, reported The Australian.
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