What Is The EFT Code And How Does It Affect You?

Who’s watching and how are you protected?

Whenever you use your credit card, an ATM or make any electronic financial transaction, there is a slight risk of something going wrong; we all know that computers and machines have faults and can be open to manipulation or fraud.

In fact several high profile fraud cases have recently raised their head and have got many Australians wondering how they are protected by legislation.

Below we take a look at the Electronic Funds Transfer (EFT) Code and how it affects your financial transactions.

The EFT Code

Basically the EFT Code is a code of practice created by ASIC in 1986 and revised a few times since; almost all Australian banks, building societies and credit unions have signed up to this code and the good news is that it protects you when you are making EFTs. Continue Reading…

A Credit Card Debt Breakdown For The Average Australian

Is your credit card debt under control?

How much do you think the average Australian owes in credit card debt and how much do their annual interest payments amount to?

The latest figures, according to ASIC, suggest that the total Australian credit card debt, as at April 11^th 2012, is around $37 billion; that equates to around $4,860 per card holder.

Recently that figure has been decreasing very slowly but generally it increases; a tighter economy and a less certain global outlook seems to be making Australians think twice about spending on their credit cards.

Interest payments

These figures above mean that the average Australian is paying over $800 per year in interest charges, assuming an average interest rate of around 15%-20%. Continue Reading…

Secondary Credit Cards – Good Idea?

Secondary credit cards – not for everyone

Secondary credit cards can be a great way for family members to have access to credit through one account, but unless they are used responsibly and monitored they can be more trouble than they’re worth.

Here we take a look at the main pros and cons to help you decide whether secondary cards will be a help or hindrance to your personal finances.

Do You NEED a Secondary Credit Card?

Many credit card offers advertise that you can get up to “9 secondary cards for free” or other such offers that may look great – but do you really need the extra cards?

This depends on your personal situation, as always.

For a married couple who share bank accounts and check statements every month then it can be a great idea to have two cards linked to one account. If the credit card in question is suitably low interest and low annual fee, it saves on having to administer two accounts and one repayment can be scheduled every month to cover balances.

Continue Reading…

The 10 Biggest Credit Card Mistakes In Australia

Avoid these 10 credit card mistakes

You only have to look at how many Australian credit card holders still struggle with rising balances to see that there are still some pretty big mistakes being made out there.

You can start to get control of your debt by taking some simple steps and avoiding doing any of the following:

Not Comparing Credit Cards before Signing Up

It’s amazing how many people opt for the “easy” choice from their existing bank rather than shopping around and comparing cards for the best rates, fees and features that suit their own lifestyle. All the resources are available online nowadays to make informed decisions.

Continue Reading…

How To Switch Australian Bank Accounts

Need some help switching Australian bank accounts?

Switching between bank accounts in Australia needn’t be too much of a chore but there are some steps to take to avoid a few of the common pitfalls.

Online personal finance sites have made it easy to compare different bank accounts and make the decision to switch a bit easier – you can shop around more thoroughly than before and, if your current deal is not up to scratch, then find another.

How to go about it is all laid out below. Continue Reading…