Stocks - is it a good time?

The share market has not exactly been a steady over the past year, but even in a falling market there is money to be made. In fact some investors look for times of economic turmoil to pick up bargain stock. There is heaps of information about this on the Internet, but this is not a game for the uninitiated! You need to be sure that you find smart investing tips from people that know what they are doing. For those who want some security a financial planner will be able to give you advice on what to do and where to invest. This information comes from somebody who knows the industry and is likely to attuned to what is going on in the current situation.

Some people like to keep a few dollars for investing and stay within their limits when buying stocks. This way any losses are not going to break the budget and it minimizes any risk. I won't cover how to buy stocks here because there is so much information about it. Do your research before committing to any financial decisions and you will be much better prepared for what to expect!

Savings Accounts

Savings accounts come in many different formats and even though most people use these accounts for everyday spending there are a variety of options to actually help you save money too! Some of the higher interest savings accounts can actually be a very safe investment for money as well as providing instant access to your money, which is not available for many investment opportunities. These type of savings accounts are usually based online and provide the best interest rate. Do some comparisons when looking for an online savings account and you will be surprised at the differences in Interest rates, fees and charges between providers.

In these tough financial times they make a very solid investment for your money!

Currency Conversion

If like me you are enjoying the strong Aussie dollar by shopping overseas on the Internet (and possibly spending too much like me!) then you need to be able to do quick currency conversion. There are a couple of very good currency conversion websites out there that will do an accurate currency conversion so you know what your money is worth.

These are a couple of my favourites:

xe.com currency conversion

yahoo currency conversion

I hope these help and remember don't spend too much on those bargain websites (like me).

Finance tips for young adults

I found this great article on www.asic.gov.au and reccomend you visit their site to read the whole thing:

"Money is an important topic for everyone. If you're young, and just starting out in the world of work, you may not have much of it yet! But it's never too early to learn some basics.

Whether you're thinking about banking, insurance, superannuation, or investing, we can provide some help to get you started. We've collected our top 10 finance tips - follow these, and you will be well on your way to making the best use of your money."

Click to read the full article...

Types of Car Insurance - whats the difference

• Compulsory third party (AKA CTP / green slip insurance) is the minimal cover that every car must have by law. It provides essential cover against claims for compensation if you injure or kill someone in a motor accident.
  
  If you don't think your car is not worth much you may wish to take out compulsory 3rd party insurance only. Keep in mind that it doesn't cover you for damage caused to other people's property such as if you're unlucky enough to run into a Ferarri.
  
  
• Third party property is the least expensive option. It covers you for the damage you may cause to another car and may include limited cover for damage caused to your car by an uninsured driver.
  
  
• Third party property, fire and theft also covers you if your car is stolen or burnt.
  
  
• Comprehensive car insurance is the best cover option but also the most expensive. It includes the cost of crash repairs or replacing your car, even if you're at fault.

(source captaincompare.com)

High interest accounts - making your savings work for you!

Basically a high interest account gives you a high cash interest rate on your money. These differ slightly from term deposits because you still have access to your money with a high interest account. Best of all most high interest accounts are free or low fee (they want your money) and are linked to your bank account via the Internet. The best rates in Australia are around 7%, which is a very good return for such a low risk investment. As interest rates rise people with cash in these accounts will really start to benefit. To find out more about these types of accounts you can check out infochoice.com.au for more information. Currently interest rates are rising and this really benefits anyone with spare cash lying around.

Prepaid Credit Cards

These are fantastic for people who have trouble managing their credit card spending as you are using your own money! Remember to watch out for any fees you are being charged for the privilege of having one of these cards. Chances are there will be a lot of competition in this area within the next year and you should be able to get a better deal with this increased competition.

How does it work
1. Order the card
2. Load money onto the card
3. Use the card

Easy!

Stop Credit Card Fraud

Tips to prevent Fraud (adapted from www.hints-n-tips.com)

• Sign new cards immediately and then destroy your old card.
• Shred old credit card statements. These have your name, address and often your card number. If you throw these out then shred them first. This prevents the common practice of criminals going through the trash to find receipts and stealing your identity\
• Never fax your credit card number. Anyone can pick this up at the other end and you may even accidentally send it to the wrong person. Avoid doing this if possible.
• Use caution when giving your credit card number out on the phone or on the Internet.Also never give any personal information to an unannounced caller. With your name, address and some documents from your rubbish people can steal your identity.
• When buying online look for an Internet address that begins https:\\. The “s” stands for a secure connection and a small padlock symbol should appear in the bottom right hand corner of your screen. This should mean that it is safe to use your card
• Call your credit card company instantly if you suspect trouble. All credit card companies have 24 hour lost and stolen help lines. Call as soon as you realise your card is missing or you find a wierd transaction on your statement! Your credit card company will block your cards from being used and should stop you from being responsible for any charges thieves incure.
• Take advantage of any security features your card offers. Many newer cards have the option of including your photograph on the card. This is excellent protection and is highly recommended.

Credit Card Tips - Use your card to save bank fees

This tip is only for the well disciplined with their finances

Instead of withdrawing money from your savings account to make purchases use your credit card with interest free days to make all your purchases. At the end of the month pay off your credit card in full. This will save money as you will not have to pay any bank fees for transactions. If your credit card is a rewards card using it this way also has the added bonus of giving you rewards points for all those dollars spent.

Credit Card Tips - Other "hidden" fees

Lets be honest not many people read all the way through the terms and conditions of their credit cards. Lately there has been a rising trend of "hidden" fees and penalties. Your financial institution may charge you for:

• making a late payment
• exceeding your credit limit
• having a second card on the same account
• replacing a lost card
• duplicate or extra statements
• taking cash advances
• making an overseas ATM withdrawal
• converting currency when buying overseas

These fees can cost anywhere from a few dollars to hundreds of dollars so it is advisable to try and find out what these things will cost you before you accept the card.

Credit Card Tips - Can low interest cards work

If you are one of the many people that does not pay off the full amount on your credit card each month then increased credit card competition can work for you. Today many low interest rate credit cards are hitting the market and the more competition the lower interest you will pay. There are also balance transfers avaliable on many of these cards at a low or no interest rate and transfering debt from your old card can be a great way to take control of the debt (as long as you pay it off before interest is charged again). As always be careful of any hidden fees and charges on these types of cards.

Credit Card Tips - Annual Fee Waiver?

There are some banks and financial institutions that offer to remove your annual fee if you spend over a certain amount or if you have a home loan or extra savings with the bank. This means that you can choose a card with a rewards program and all the benefits and features you need and not be forced to pay a huge annual fee just for the privilege of having it. Remember though don't spend extra money just to save the annual fee - only use the card as you usually would!

Credit Card Tips - Do you need those rewards

There is no doubt that annual fees for credit cards are increasing – and the highest fees are on the cards with a rewards program. Currently there has also been a trend to reduce the amount of rewards points that are being offered meaning that you are paying more to be part of a reward program. Make sure you are not paying for a reward program that you don't want and a card without reward program that does not have a annual fee might be a better option. If you do want the rewards always make sure that the awards points you earn each year are worth more than the annual fee you are paying for the card.

Credit Card Tips - Avoid Cash Advances!

I often have people asking me about cash advances. They explain that they are really handy when you need some cash and that they still have the 55 days interest free to pay them off. This is what I tell them:

The Interest-free period on your credit card accounts do NOT apply to cash advances. In almost every case, you will pay interest on that cash you took out right from the time you grab it from the ATM. Some banks even charge a fee of 1.5 per cent of the withdrawal. That's a $15 fee straight away on a $1000 credit card cash advance.

I often get promotional material from my financial institution telling me I can have so much cahs straight away. The best way not to get sucked in to this little ploy is to throw your credit card pin away (burn it or something) before you learn it - then you can't get a cash advance anyway!

Credit Card Tips - Help I have fallen behind in my payments

Even the most responsible of people can get into trouble at times. I know many lovely people that simply aren't good at managing their finances. If you have fallen behind in your credit card payments there are some steps to take that may help you in your situation

1. Don't hide it
Banks and other credit card companies hate it when people try to hide the fact that they can't make their payments. Instead of waiting for them to send a nasty letter or call you asking what is going on, give the credit card company a call and explain to them you can't make the payment on time. Some will give you an extension to pay the bill and others will lower the interest rate until you can pay it off.

2. Cutting Back
If you are in trouble then you need to consider cutting up those cards or using your credit card sparingly (if you have good self control). Making your own lunch or coffee can often save you more than you think!

3. Get Some Advice
Find someone who is registered to give out financial advice and get a plan drawn up to get you out of debt.

Good luck managing the beast!

When honesty pays off - Personal Loan Tips

I guess we have all done it, fudged the figures, told someone they look great in that when they don't or promised to visit your grandma when you had no intention, but sometimes being honest with your lender can really pay off.

If you are honest about why you really want your loan your bank / financial instutution will sometimes be able to offer you a different loan that might better suit your needs and circumstances. These specialised loans can often save you money on the regular "personal loan" product in which all kinds of things are lumped together.

Car Loan Tips - Don't blindly accept dealer finance

Sure - dealer finance might be easier to get and be much less hassle, but always remember to compare what they are offering you with finance options from your bank or other financial institutions. Dealer finance may be more restrictive and have hidden fees and charges that you do not realise until it is too late. You may even end up paying more in interest.

I am sure you Aussies reading this have heard about a certain dealer who offers motor finance that has been ripped to pieces by A Current Affair lately (although I don't recommend watching this show!)

Personal Loan Tips - Shop Around

When applying for a personal loan there are many options available to you. Don't take the first one you come across. The big banks all offer personal loans, but also consider community banks, credit unions and other smaller financial institutions. These smaller companies often want your business and will have special deals and lower rates in certain cases. Don't be afraid to make some enquiries and tell you bank that you can get a better deal elsewhere. They might say fine then do it or they might just make you a better offer!

Peronal Loan Tips - Avoid Unsecured Loans

When you take out a personal loan for a car/boat/holiday try and make sure that you avoid taking out an unsecured loan if possible. If you can put up some security for your borrowings then you will, on most occasions, get a lower interest rate.

The best option is a home equity loan, or redraw extra repayments, this allows you to borrow against the equity built up in your own home or an investment property. This can get you finance at up to 5 percent less than a car/personal loan.

Debt Consolidation - For all Australians

The Fox Symes & Associates has featured on ACA and Today Tonight and have helped more Australians resolve their debt than any other organisation. They will help you consolidate your debt and offer a real alternative to bankruptcy. If you are struggling in debt then it is a very simple case of checking out their website and filling in an easy online form to get you started on the road to financial recovery.

Home Loan Tips # 7

Watch that mortgage broker!

A mortgage broker can certainly save you some time and hassle. They often can get you a great rate and find a loan with features that really suit you. However, you must always remember they are doing this job for the commission they will earn (and mostly deserve). Ensure your broker discloses their commissions and explains to you (in writing) why their loan recommendation is the best for you (not earning the best commissions for them!). Remember that you should never pay for a broker unless they are going to return some of the commission to you. There are literally hundreds of free brokers out there if you don't like what one is telling you or offering then go somewhere else!

Home Loan Tips #6

Do your homework and look beyond the banks

There are literally hundreds of home loans avalibale these days and all have different rates, fees and features. In this current climate of lending the customer is spoilt for choice and this means that it will really pay to shop around. Your best first step would be to do your research and find out what lenders are offering (the real nitty gritty of the loan not the flashy stuff like a free TV) and how that compares to other sites.

A great way to research these days is on the Internet. A simple google search (I have a google search box at the top right hand side of this blog if you need it) for "home loans"or "comparing home loans" will yeild hundreds of results. Some of the pages you will find will literally compare every loan available to you and will tell you all about their features.
Lastly consider smaller lenders such as credit unions, building societies, mortgage originators, community banks and online or telephone banks may offer better interest rates or lower fees than the big banks because they want your business. However always be sure to check out unknown/small mortgage brokers thoroughly and always read the fine print!

Home Loan Tips #5

Check your bank statements for errors

Some experts claim that over 50% of home loan statements contain errors. These are usually simple mistakes, like entering the incorrect balance, applying the wrong interest rate at the wrong time. Even these simple errors can be costly and mostly the are in favour the lender. It is important to remember that computers do all of the paperwork at a bank and we all know that computers can make mistakes. You know the most about your situation and there is no better person than you to check over your statements. For example just because one bank employee told you that you would get a discount does not mean that the computer has been told or will remember!

If you are too busy to check your bank statements or need help there is software available for your home PC that runs a check on your statements. Two such programs are:

1. Mortgage watchdog Pro
2. Mortgage statement checker

These programs are shareware and are free to try, but may cost money to use properly.

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Home Loan Tips #4

Take out a line-of-credit loan and save
Let me first say that this option is not for everyone, but if your are disciplined with your money then this type of loan can save you a mini fortune.

Line of credit, salary account or all-in-one loans are the common names for a type of loan that makes every spare dollar work to reduce the debt. This type of loan allows your income to be paid directly into the loan account to reduce the loan amount, instead of waiting for the repayment due date. Effectively you are making bigger repayments because you only withdraw what you need from the account leaving all your savings in the loan to reduce the balance. By doing this your loan is paid off much quicker and you can save literally thousands in interest. However you must make sure you are taking out less than is going in and you need to make sure that the total left over is more than you would be paying on a normal loan.


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Home Loan Tips #3

Make your extra cash work harder
Lets face it not all of us have extra cash, but if you are someone that does this little tip can help you save quite a bit off your home loan
If you have a home loan in Australia at the moment you are probably paying about 8 per cent interest, every extra dollar you pay off is another dollar you are not paying 8 per cent on each year. Now if you instead put that extra dollar into a savings account (even a high interest one) you are only going to earn 2 or 3, perhaps 6 per cent at the most. So putting your savings into your loan can "earn" you up to twice as much.

Most loans typically have redraw facilities available and these allow you to take back those extra payments if needed anyway. Just make sure you are not being charged extra for the privilege.

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Home Loan Tips - #2

Tip 2 - Ask about discounts/special offers

Banks want to keep lending people money and they will often lower the rate to make sure you don't look elsewhere.

Banks often have special packages where you sign up for a few hundred dollars a year, but you get a lower interest rate. The packages can also have other perks such as no annual fee on your credit card, no account keeping fees and more that will make it worth while in the end. These are commonly referred to as relationship discounts and reward you for keeping all your banking buisiness with the one institution

Another top bit of advice I recently read was to ask lenders about the "professional packages". If you are making more than $50,000 a year, or $80,000 or more with a partner these packages can give you a discount of about 0.5 per cent on your loan.

Pick up the phone or call into your bank today and ask for a better deal. You just might be surprised!

Home Loan Tips #1

After the very recent interest rate rise here in Australia I have decided to do a series of tips on home loans to help people save a few dollars off their home loan.

Tip 1 - Additional repayments
If you can still afford it after the recent rate rise making additional repayments is still a great way to reduce the term of your loan and total interest paid.

For every $1 in extra repayments you make, you will saves around $2 in interest over the term of the loan.

You can do this in two ways

• One off lump sum payment when you have some spare cash like at tax return time.
• Increasing your regular repayment amount (even a slight increase will help!)
  

Before doing this though you must make sure that your loan allows you to make additional repayments without penalty or fees and charges. Some basic (or low-doc) loans often have restrictions on extra repayments. Check with your financial institution.

Tips on avoiding credit card debt

Credit Card debt is at the highest levels it has ever been in this country. Some simple tips can help you avoid becoming another statistic:

1. Pay more than the minimum payment each month - The best solution is to pay the entire balance off your card each month. If your balance is very high still try to pay as much as possible.

2. Transfer the balance of your credit cards to low interest rate cards. Most credit cards will offer up to 6 months interest free on balance transfers when you sign up giving you longer to pay off the debt.

3. If you don't receive or care about rewards programs sign up to a credit card with no annual fee. This can save you over $100 in many cases.

4. If you can't control your spending use the new pre paid credit cards or cards that link directly to your bank account so you are using your own money.

5. If you are in serious debt there are a couple of options that might just help you out:

• Talk to the financial institution about lowering the interest rate while you try to pay it off (lets face it they would rather have their money back than have you declare bankruptcy)
• Talk to a financial adviser about taking out a loan to cover the whole debt at a lower interest rate than the credit cards. This is often called a consolidation loan, where all your debts are put together into one loan.

These simple tips may save you some money.

Good Luck
Tom

Welcome to my blog

Hi
My name is Tom and I am from the top end of Australia. I have started this blog to help people find information about financial products in Australia, because there are many sites dedicated to America, but not many to our great country.

This blog will contain genuinely written reviews of Australian finance products like credit cards, home loans, term deposits, managed funds, personal loans, insurance and many more.

Feel free to leave comments and check back soon.

Cheers
Tom