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No credit score? A grocery list could be the next best thing

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/joonhyuk-yang-1548700">Joonhyuk Yang</a>, <a href="https://theconversation.com/institutions/university-of-notre-dame-990">University of Notre Dame</a> and <a href="https://theconversation.com/profiles/jung-youn-lee-1548702">Jung Youn Lee</a>, <a href="https://theconversation.com/institutions/jones-graduate-school-of-business-at-rice-university-5411">Jones Graduate School of Business at Rice University</a></em></p> <p>How you shop and what you buy at the grocery store can predict whether you pay your credit card bills on time, <a href="https://doi.org/10.1287/mnsc.2022.02364">our new research shows</a>.</p> <p>As <a href="https://mendoza.nd.edu/mendoza-directory/profile/joonhyuk-yang/">marketing</a> <a href="https://business.rice.edu/person/jung-youn-lee">professors</a>, we wanted to learn about alternatives to traditional credit scores. So we teamed up with a multinational conglomerate that, among other things, runs a large supermarket chain and a credit card issuer.</p> <p>By analyzing consumer-level data from those two business units, we were able to see how 30,089 individuals shop and manage their finances.</p> <p>We found that people with more consistent grocery shopping habits are more likely to pay their credit card bills on time. These are people who tend to shop on the same day of the week, spend about the same amount each month, buy similar items across trips and take advantage of deals regularly.</p> <p>We also found that what people buy predicts how they manage their finances. For example, shoppers who frequently purchase cigarettes or energy drinks are more likely to miss credit card payments. Those who often buy fresh milk or salad dressing tend to be more diligent about paying their bills.</p> <p>In general, buying healthier but less convenient food predicted responsible payment behaviors. This was true even when we held consumer characteristics such as income, occupation, credit score and family size constant.</p> <p>Building on those findings, we developed a credit scoring algorithm that scores people based on their grocery shopping habits along with traditional credit risk indicators. When we simulated approval decisions with this algorithm, we found that using grocery data could help lenders predict defaults more accurately while boosting their per-customer profits.</p> <h2>Why it matters</h2> <p>According to the World Bank, <a href="https://www.worldbank.org/en/publication/globalfindex">more than 1 billion people</a> worldwide lack access to formal financial systems and, as a result, have no credit scores. In the U.S. alone, <a href="https://www.consumerfinance.gov/data-research/research-reports/who-are-credit-invisibles/">about 45 million adults</a> have no credit history or not enough of one to generate a score.</p> <p>This makes it hard for them to access credit, even if they are responsible borrowers. And without credit, it’s harder to get a car, a job or even a place to live. It’s a problem that disproportionately affects <a href="https://www.worldbank.org/en/publication/globalfindex">underprivileged groups</a>, including people of color and women.</p> <p>In response, policymakers and researchers are increasingly interested in using alternative data sources to assess creditworthiness. For instance, <a href="https://www.cnbc.com/2024/07/17/how-on-time-rent-payments-help-credit-invisible-consumers.html">Fannie Mae now considers</a> mortgage applicants’ rent payment histories, allowing those without traditional credit histories to demonstrate their creditworthiness.</p> <p>Grocery data is especially promising because there’s so much of it. Pretty much everybody buys groceries, and not just once. Information about consumer preferences is continuously being generated in every aisle of grocery stores around the globe.</p> <p>Our study shows that this data has value far beyond the grocery industry.</p> <h2>What’s next</h2> <p>We believe that our study serves as a proof of concept, offering insights for the design and implementation of future research. However, several key questions remain. For example, what if this approach affects different groups unequally? And what about privacy concerns?</p> <p>Our follow-up research aims to address these issues. We’re collaborating with a conglomerate in Peru, a cash-reliant country with a significant unbanked population. Building upon our current findings, we’re working closely with that company to test the impact of our approach on low-income populations. We’ll be helping to evaluate credit applicants using retail transaction data, aiming not just to improve profitability but also to boost social inclusion in the region.</p> <p><em>The <a href="https://theconversation.com/us/topics/research-brief-83231">Research Brief</a> is a short take on interesting academic work.</em><!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/234887/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/joonhyuk-yang-1548700">Joonhyuk Yang</a>, Assistant Professor of Marketing, Mendoza College of Business, <a href="https://theconversation.com/institutions/university-of-notre-dame-990">University of Notre Dame</a> and <a href="https://theconversation.com/profiles/jung-youn-lee-1548702">Jung Youn Lee</a>, Assistant Professor of Marketing, <a href="https://theconversation.com/institutions/jones-graduate-school-of-business-at-rice-university-5411">Jones Graduate School of Business at Rice University</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/no-credit-score-a-grocery-list-could-be-the-next-best-thing-234887">original article</a>.</em></p> </div>

Money & Banking

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How to score yourself free onboard credit on your next cruise

<p>Everybody loves to splurge on holidays especially when you’ve been given free credit! Here’s how to score yourself some free cash.</p> <p><strong>Grab a deal</strong></p> <p>With so many cruise lines now sailing out of Australia, they will all be competing hard for your business. You can book a great deal at any time of year and, alongside things like free upgrades or 50 per cent off for a second passenger, you’ll find onboard credit. Do your research and you could easily score yourself hundreds of dollars to spend onboard at no extra cost.</p> <p><strong>Book through an agent</strong></p> <p>Specialised cruise travel agents develop strong relationships with the lines and will be able to secure you the best price. As part of their offering, they can also throw in some free onboard credit. This could be with an individual shopfront agent or one of the larger online third parties, so look around for the best offers. And if you don’t see anything advertised directly, it never hurts to ask!</p> <p><strong>Stay loyal to a line</strong></p> <p>Most major cruise lines will have a dedicated loyalty scheme that operates sort of like a frequent flyer program. Cruise multiple times with the one line and they will reward you with special fares, upgrades and (you guessed it) onboard credit. Make sure you use your unique identification number every time you book so that you don’t miss out on any of your points.</p> <p><strong>Book another cruise</strong></p> <p>If you’re loving your cruise, take advantage of the onboard sales office and book another one right away. You’ll be able to take advantage of exclusive offers that you won’t find on land and many of these include onboard credit. The line will be eager to get you to sign up again before you can look at other ships, so it’s a chance for you to grab some big bonuses.</p> <p><strong>Make the best of a bad situation</strong></p> <p>When something goes wrong on a cruise (like a change of itinerary, missing a port or a fault with your cabin) the line will very often compensate you with onboard credit. We’re not saying you can create a problem to grab some cash, but if you have a legitimate problem then alert the crew as soon as possible and see if they can offer you some in exchange.</p>

Cruising

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Alan Joyce grilled over cancelled flights and Covid credits

<p>Outgoing Qantas CEO Alan Joyce has faced a line of tough questioning after appearing in front of a Senate committee on Monday, who questioned his enormous salary in the face of the cost of living crisis.</p> <p>At the explosive public hearing of the select committee on the cost of living, which Joyce had to be summonsed to after repeatedly refusing to attend, the outgoing Qantas chief executive defended the record $2.47bn full-year profit he announced just days earlier.</p> <p>Senators were confused by the extraordinary profit, given Qantas has seen 12 months of soaring customer dissatisfaction and a looming class action lawsuit over the travel credits policy during the height of the pandemic, as well as facing accusations of anti-competitive behaviour, and historically high cancellation rates out of Sydney airport.</p> <p>Joyce defended the profits, saying Qantas had been caught up in a wave of “criticism of corporate profits” due to cost-of-living pressures.</p> <p>As well as the company's incredible profits, Joyce himself, who is walking away from the CEO role at the end of the year, is set to walk away with as much as $24 million in personal pay. </p> <p>Labor senator Tony Sheldon quizzed Joyce on if he feels "embarrassed" over his huge personal salary, given the airline’s soaring complaints and his decisions to restructure the airline to pay employees less.</p> <p>Joyce refused to answer the question, saying the senator was "making a whole series of points that are just incorrect.”</p> <p>Joyce was then grilled on the seemingly "strategic" cancellation of domestic flights, in which some senators, as well as airline competitors, had accused Qantas of booking in flights out of Sydney airport and then cancelling them last minute, to block other airlines from increasing their services. </p> <p>He again denied these claims, stating that Qantas’s cancellation rate on a national level (not out of Sydney specifically) were the lowest of the major carriers, and blamed the cancellations on “supply chain issues” and “air traffic control delays”.</p> <p>Finally, Joyce was confronted over his policy of not refunding travel credits that were issued when travellers' trips were cancelled during the height of the pandemic. </p> <p>In June, Qantas announced more than $500 million in Covid credits remained unclaimed and would expire by the end of the year.</p> <p>While refunds have been offered for some credits, not everyone was able to claim these, and a class action lawsuit is now claiming compensation for lost interest on the credits.</p> <p>At the Senate committee meeting, Jetstar chief executive, Steph Tully, said the number of unclaimed credits now lies at $370 million, however this figure did not reflect Jetstar or overseas customers’ credits.</p> <p>“Around $100m” in Jetstar credits remain unclaimed, on top of Qantas’s $370m, Tully said.</p> <p>Senator Sheldon then slammed Tully for "not being transparent” before asking “what’s stopping you from refunding the money”.</p> <p>Tully replied “lots of reasons”, citing codeshare flights and “half-taken trips”.</p> <p><em>Image credits: Getty Images</em></p>

Money & Banking

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Common credit card mistakes to avoid

<p>If you regularly use your credit card, you’ll know how easy it is to plonk down the plastic for your shopping and other purchases. It’s also easy to forget those pesky card payments that follow. </p> <p>Along with the convenience of credit cards comes the danger that your bills can quickly snowball into a major debt that can linger for years if not managed properly. </p> <p>It pays to be aware of the pitfalls of credit cards and ensure you’ve got good habits in place to avoid them as much as possible. The following are a few suggestions:</p> <p><strong>Shop around for the best card deals</strong></p> <p>Don't make the mistake of signing up for the first credit card offer that arrives in your mailbox. Go online and look for the best possible card terms and features to suit you. Credit card rates can vary significantly, depending on the card and type of promotion offered.</p> <p><strong>Rewards programs</strong></p> <p>Following on from the point above, make sure the card you choose provides features you genuinely need and will actively use. Credit card rewards are promoted to make consumers think they’re getting something for free. But when you add up what it costs to earn rewards, a rewards program may not be much of a perk. For instance, credit cards that offer rewards often have much higher interest rates than cards with no rewards.</p> <p><strong>Keep track of your spending</strong></p> <p>While using a credit card sometimes feels like you’re not really spending money, not keeping track of your spending can wreak havoc on your finances. Carry a small notebook or if you’re more tech savvy, use one of the many apps available on your phone to record your purchases so you won't get a nasty shock when you receive your monthly statement. Make sure you check your statements regularly too.</p> <p><strong>Late and minimum payments</strong></p> <p>Credit card payments that aren’t paid on time result in late fees and higher interest rates. Read through your credit card statement carefully so you know when the payment is due. Consider auto-payment facilities or put a recurring note in your calendar each month a few days in advance of your payment due date to ensure you don’t miss it. Most card statements list the date that payments must be received by to avoid penalty interest fees. Ideally, it’s best to pay the full amount every month. Only paying the minimum amount will make the situation worse over time by attracting cumulative interest payment penalties.</p> <p><strong>Using cash advances</strong></p> <p>While they’re a tempting option, cash advances attract higher interest rates and should be used with care.</p> <p><strong>Handle with care!</strong></p> <p>Credit cards can be useful financial tools when used responsibly. Getting into good habits can ensure you take full advantage of the benefits while avoiding the traps.</p> <p><em>Image credit: Shutterstock</em></p>

Money & Banking

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Surprising differences in how we use credit cards and cash

<p>With more credit cards used by Kiwis than ever is definitely seems as though New Zealanders are addicted to the convenience of not having to pay with cash. But what is the impact of this on New Zealand consumer behaviour?</p> <p>Since the late 1990’s researchers have been interested in understanding the psychology behind credit card use, not least because of the proliferation of debt in the consumer market and the concern of the ease with which to gains these cards (and debt) preys on vulnerable consumers.</p> <p>A 1998 study conducted by George Lowenstein and his colleagues that was published in 2001 made the finding that payments with cash elicited quite a different emotional response to payments made with credit cards or any other payment methods where the actual payment is to a certain extent “delayed”. The suggestion is paying by traditional methods with cash requires a physical transaction that can be more painful than paying for something with credit, where you see a figure on the receipt but you’re not actually handing over a physical amount of money in real life.</p> <p>In another experiment as part of the project, Mr Lowenstein observed that people were willing to pay much more for a particular event with credit cards than with cash, with the premium ranging anywhere between 60 and 113 per cent more, which represents quite a significant difference. </p> <p>Similar research has also found people are more likely to spend money when given $50 in cash rather than $50 in a gift voucher, they were more likely to spend a higher proportion of that in the latter rather than the former, which is again probably because of the lack of physical exchange.</p> <p>So what does this mean for you? Well, if you’re looking to tighten your purse strings around the house, opting to make more purchases with cash might just be the best way to do it. By making your purchase with cash you’re statistically likely to be less likely to overspend and more mindful of the items you are actually buying, which could lead to significant savings down the track. Willpower can be hard, especially when shopping, but this is an easier way to make willpower happen.</p> <p><em>Image: Getty Images</em></p>

Money & Banking

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Nurse swipes credit card from dead patient and USES it in vending machine

<p>UK healthcare worker, Ayesha Basharat, has been slammed as she stole a dead patient's card and used it at the hospital's vending machine.</p> <p>She had taken an 83-year-old woman's card from her room in the heartlands Hospital's COVID-19 ward and used the card six times at the vending machine, making contactless payments.</p> <p>Basharat had stolen the card from the woman just moments after she died on January 24th, according to<span> </span><a rel="noopener" href="https://west-midlands.police.uk/news/hospital-worker-used-dead-patients-bank-card-buy-sweets-and-fizzy-pop?fbclid=IwAR0zaC47A9DaQWcq_aaGVGjmJOOV9ccbobeGBpAjHpu-SHpTsADEfOmeqso" target="_blank">West Midlands Police</a>.</p> <p>Police caught up to her after she continued to use the credit card despite the family of the woman cancelling it.</p> <p>Basharat has been given two concurrent jail terms of five months each, both of which were suspended for 18 months.</p> <p>Detective Constable Andrew Snowdon said the act was an "abhorrent breach of trust".</p> <p>“This was an abhorrent breach of trust and distressing for the victim’s family," he said.</p> <p>“They were having to come to terms with the death of a loved one from Covid when they found the bank card missing – and then of course the realisation that the card was taken by someone who should have been caring for her.</p> <p>“I wish the family all the best for the future and with this conviction hope they can move on from this upsetting episode.”</p>

Legal

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5 ways you can save money by using credit cards

<p>Credit cards sometimes get a bad rap, and that’s mostly because they can lead you to temptation to spend beyond your means.</p> <p>Used responsibly, however, these little pieces of plastic can actually save you money as banks are constantly running promotions that offer discounts for spending.</p> <p>The key is to pay your bills in full every month so you don’t incur the astronomical interest rate, which, in Singapore, is about 25 per cent per annum.</p> <p>Check out these 5 ways that using credit cards can help save you money.</p> <p><strong>1. Dining deals</strong></p> <p>Credit cards that offer dining deals are a foodie’s best friend and the good news is, there are plenty of such cards in Singapore, Malaysia, Australia and New Zealand.</p> <p>Be sure to subscribe to receive promotional emails and mailers from your banks to find out about current dining deals such as 1-for-1 offers, cashback or complimentary treats at selected eateries.</p> <p><strong>2. Discounts on hotels and flights</strong></p> <p>Keep an eye out for special flight or hotel deals from your credit card of choice.</p> <p>You can also get discounts when you book through hotel booking sites such as Agoda or Expedia.</p> <p>Some cards are specially designed for frequent travellers as you get complimentary use of airport lounges a number of times a year, and free travel insurance if you purchase your ticket using the card.</p> <p>Be aware, though, that some airlines charge a fee when you pay for your tickets online using a credit card, so do some calculations to see if it still works out cheaper.</p> <p><strong>3. Take advantage of interest-free instalment plans</strong></p> <p>If you need to buy expensive electronic or electrical goods, such as a new TV or laptop, the 0 per cent interest instalment offered by most major credit cards at most major electronic stores can come in very handy.</p> <p>It helps spread the payments out over your chosen six or 12 months without the high interest rates you would otherwise incur if you were to pay for it upfront using your credit card.</p> <p>This allows you to better manage your monthly expenses and avoid overspending.</p> <p>Credit card companies make profits on a simple fact of human nature: we buy today and worry about how to pay for it tomorrow.</p> <p><strong>4. Discounts on everyday items</strong></p> <p>Credit cards aren’t just useful for big ticket or luxury goods, they can help you save on everyday items too, such as groceries and petrol.</p> <p>In Singapore, cards from POSB, Citibank, HSBC and others can knock off up to 20 percent from your petrol spending each time you fill up the tank.</p> <p>There are many similar campaigns available in Australia and New Zealand.</p> <p>And with the high cost of car ownership, every single dollar counts.</p> <p><strong>5. Collect rebates and cashback</strong></p> <p>If you’re not after dining deals and you don’t like going for holidays, you may want to keep it simple and just collect good ’ol rebates or cashback from your spending.</p> <p>In Singapore, most cashback cards require you to have a minimum spend per month, such as $500, in order to qualify for rebates.</p> <p><em>Written by Siti Rohani. This article first appeared in </em><span><a href="https://www.readersdigest.com.au/money/5-ways-you-can-save-money-using-credit-cards"><em>Reader’s Digest</em></a><em>. For more of what you love from the world’s best-loved magazine, </em><a href="http://readersdigest.innovations.com.au/c/readersdigestemailsubscribe?utm_source=over60&amp;utm_medium=articles&amp;utm_campaign=RDSUB&amp;keycode=WRA93V"><em>here’s our best subscription offer.</em></a></span></p>

Money & Banking

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4 credit card rules you should never break

<p>According to a study from <span><a href="https://www.finder.com.au/1-6-million-australians-have-3-credit-cards">finder.com.au</a></span>, 40% of Australians own one credit card, 19% own two credit cards and 8% own three or more. Unsurprisingly, cardholders with several cards were more likely to have bigger credit card debts than those with just one credit card. The study found that those with several cards carried on average $6,500 of credit card debt – more than double the national average.</p> <p>However, credit cards are not necessarily a bad thing, says Prudential’s financial wellness advocate Tiffany Aliche. “It’s a myth that credit cards are innately bad,” she says. “Think of them instead like a tool, just like a hammer. You can pick that hammer up and build a house, or you can pick up that same hammer and destroy that same house. It depends entirely on the user.”</p> <p>So, is there a method to the credit-card madness? We ask trusty financial experts for their top credit card dos and don’ts.</p> <p><strong>1. Stick to one or two cards</strong></p> <p>It’s a common belief that to have good credit, you need credit cards. The truth is yes… and no. Financial wellness advocate Felicity Aliche recommends keeping at least one but not more than three cards. “Remember, if you have no credit history, you are a bad borrower,” she says. “It’s just like if my 16-year-old relative said, ‘Look, I’ve never been in an accident,’ yet she’s never driven a car, so therefore she’s a bad driver. Well, the same goes for credit.”</p> <p>However, that doesn’t mean you need to fill your wallet with plastic in order to have good credit, either. “Because the word ‘credit’ is in credit cards, people associate the two, but your credit score is about much more than that,” she says. “Your credit score encompasses many more aspects than cards. It’s about any time you borrow and pay back money, whether it’s a mortgage, car loan, student loan, even your utility bills.”</p> <p><strong>2. Remember the 30 per cent rule</strong></p> <p>You could be paying your monthly credit card bill on time, but if you’re continually carrying a high balance, that will bring your credit score down. “Think of 30% as your new maximum, and realise that anything above that is going to tank your score,” says Aliche. Gearing up for a big purchase, like a home or car? Then aim for 15%, she says.</p> <p><strong>3. Shop around</strong></p> <p>Interest rates may be low for those with a mortgage, but credit card interest rates haven’t moved much. However, that doesn’t mean you shouldn’t look for a lower rate. Let’s say you bring your interest rate down from 20% to 15%. That means for every $100, $20 is going to interest and fees, versus $15. That’s quite an amount over a period of time. “That’s why I suggest that people regularly negotiate their rate. Pick a date every year that you spend on negotiating your fee, and you may be surprised how easy it can be to lower it,” says Aliche. Better still, try and pay off the whole amount each month so you don’t pay any interest at all.</p> <p><strong>4. Look for cash-back cards</strong></p> <p>Cashback credit cards are fairly new to Australia so it’s crucial to understand your money reward options before choosing that new piece of plastic to sit in your wallet, says <span><a href="https://mozo.com.au/credit-cards/guides/cash-back-credit-cards-unveiled/84">mozo.com.au</a></span>.</p> <p><span><a href="https://mozo.com.au/rewards-credit-cards/cashback">Cash back credit cards</a></span> work in a similar way to reward credit cards like platinum and frequent flyer cards: every time you use your card to buy something you earn reward points which you then redeem for products or flights. However, with cash back cards your points are converted into cash.</p> <p>“I’m a big believer in cash-back cards,” says Foguth. “I put everything – petrol, restaurants, you name it – on one credit card that offers cashback. Even if I get 1% cashback, that’s 1% more than if I used a $100 note in my pocket,” he says.</p> <p><em>Written by Michelle Crouch. This article first appeared in </em><span><a href="https://www.readersdigest.com.au/food-home-garden/money/12-credit-card-rules-you-should-never-break"><em>Reader’s Digest</em></a><em>. For more of what you love from the world’s best-loved magazine, </em><a href="http://readersdigest.innovations.com.au/c/readersdigestemailsubscribe?utm_source=over60&amp;utm_medium=articles&amp;utm_campaign=RDSUB&amp;keycode=WRA93V"><em>here’s our best subscription offer.</em></a></span></p>

Money & Banking

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5 ways to escape the credit card debt trap

<p>Feeling the pinch towards the end of the year and want to get ahead on your finances and debt? Here are some suggestions.</p> <ol> <li><strong>Start a piggy bank</strong> Go old-school! Save up for purchases instead of buying on impulse.</li> <li><strong>Only use one credit card.</strong> The more cards you have, the more you’ll be tempted to carry a larger balance and take on unwanted debt.</li> <li><strong>Pay the highest interest rate first.</strong> If possible, pay off your credit card bills and card balance in full each month. Or pay as much as you can afford above the mandatory payments on the highest interest rate card first. Set up a direct debit for minimum payments to avoid late fees or transfer your balance to a new 0% interest credit card for a limited time.</li> <li><strong>Spend less than you earn.</strong> Cut back on unnecessary expenses and use what you already have before buying new things. Create a self-imposed ‘spending freeze’ for a few months. Take your credit card out of your wallet and only use physical cash for a month.</li> <li><strong>Don’t spend ‘imaginary money’. </strong>Avoid spending any money you haven’t yet earned and lower your credit card limit to help avoid temptation. Financial experts suggest keeping records, making a budget and sticking to it. If you have more than one card, close off each credit card as you pay it off.</li> </ol> <p><em>Written by Readers Digest Editors. This article first appeared in <a href="https://www.readersdigest.com.au/money/5-Ways-to-Escape-the-Credit-Card-Debt-Trap">Reader’s Digest</a>. For more of what you love from the world’s best-loved magazine, <a href="http://readersdigest.innovations.com.au/c/readersdigestemailsubscribe?utm_source=over60&amp;utm_medium=articles&amp;utm_campaign=RDSUB&amp;keycode=WRA93V">here’s our best subscription offer</a>.</em></p>

Money & Banking

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5 times to never use your credit card for payment

<div class="postIntro">Credit cards might be convenient and reliable, but here are some scenarios where swiping or entering your digits could be dangerous.</div> <p><strong>1. When a website address does not begin with "HTTPS"</strong></p> <p>If you don’t see these five letters in the address bar of the website you are trying to make a payment on, it means the site is not secure.</p> <p>“HTTPS is a protocol for secure communication over a computer network which is widely used on the Internet,” explains Robert McKee, lawyer and certified international privacy professional.</p> <p>“Its main motivation is authentication of the visited website and protection of the privacy and integrity of the exchanged data.”</p> <p>When the URL begins with “HTTPS”, the site is secure, and you are safe to use a credit card.</p> <p>If the site does not include an “s” in this beginning part of the URL, opt out of the online purchase, and try using a third-party payment system like PayPal instead.</p> <p>These sites act as another barrier between an organization and your credit information. If all else fails, try paying in person.</p> <p><strong>2. When you're responding to an email</strong></p> <p>It is actually better to provide your credit card to someone over the phone (only when you have initiated the call—more on that later) or even via text message than it is to respond with your credit card number in an email.</p> <p>“There is a technique called ‘phishing’ or ‘spear phishing’, and it involves emails that are designed to extract your credit card number for an unauthorized purchase,” warns Stephen Lesavich, PhD, JD, attorney, credit card expert, and best-selling author.</p> <p>Before clicking on any link, look for phishing clues like spelling mistakes, strange use of English, and logos that look off.</p> <p>Another technique is to hover over a link while not clicking on it and see if you can recognize the URL.</p> <p>Look for the same site outside your email and compare them.</p> <p>If there is anything suspicious, do not make the purchase or make it from another site.</p> <p>They’re smart, they’re sneaky, and they want your personal information.</p> <p><strong>3. When charity fundraisers approach you on the street</strong></p> <p>Quite often, and mostly in big cities, you’ll see charity fundraisers walking the streets in an attempt to collect donations in the form of money for a variety of causes – the environment, child welfare, and pet care, to name just a few.</p> <p>They might only ask to take your name down so they can contact you at a later date, but if they ask you for your credit card, beware.</p> <p>“These causes are known to target people’s emotions to get them to donate,” warns Lesavich.</p> <p>“Although legitimate in some cases, they could instead be scams to charge your credit card and get your credit card information.”</p> <p>If you want to contribute to these causes, a safer bet is to visit their website, check that it’s secure and then make a donation from there.</p> <p><strong>4. When speaking to anyone over the phone</strong></p> <p>Try to avoid giving your credit card information over the phone for the simple reason that you don’t know where it will go once you hang up.</p> <p>You also don’t know who’s listening in on the call – whether it’s people around you, someone else on the line, or even the person on the other end of the phone who’s taking down your digits.</p> <p>“One of the most common examples of card information being given over the phone is through delivery food purchases,” says Jeremy Brant, VP of Information Technology for .<br />Bank.</p> <p>“In situations like these, or other instances where a vendor is asking for card information over the phone, order the service online or pay cash in person.”</p> <p>With delivery food, should the location not have its own website (or the website is not secure), third-party smartphone apps can fill in the gap.</p> <p><strong>5. When an online merchant has no reviews</strong></p> <p>If you’re considering buying from a merchant on any type of marketplace – from eBay to Etsy – look them up online. If you Google them and there’s only one listing for the merchant, with no online reviews, no past experiences from other customers, and no social media accounts, you should think twice about handing over your card.</p> <p>This is true for online merchants, of course, but real-world merchants as well. “The Internet has given consumers a much more effective way to gauge the reputation of the companies we do business with, so use it,” suggests Adam Jusko, founder and CEO of a card comparison and news site.</p> <p>Along these same lines, look for contact information on the websites you buy from, including address and phone number if you’re unfamiliar with the merchant.</p> <p>“Cross reference the address and phone numbers by looking them up in a search engine to see if they match the merchant.”</p> <p><em>Written by Jenn Sinrich. This article first appeared in <a href="https://www.readersdigest.com.au/true-stories-lifestyle/thought-provoking/10-times-never-ever-use-your-credit-card-payment">Reader’s Digest</a>. For more of what you love from the world’s best-loved magazine, <a href="http://readersdigest.innovations.com.au/c/readersdigestemailsubscribe?utm_source=over60&amp;utm_medium=articles&amp;utm_campaign=RDSUB&amp;keycode=WRA93V">here’s our best subscription offer</a>.</em></p>

Money & Banking

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“Be extra vigilant”: One in four retirees losing $1,000 to credit card scams

<p><span>People aged 65 and over have been urged to take precautions when banking online after a survey revealed that over one in four retirees have lost more than $1,000 to credit card frauds.</span></p> <p><span>A <a href="https://www.comparethemarket.com.au/">survey of 1,500 Australian credit card holders</a> by price comparison website <em>comparethemarket.com.au</em> found that 27 per cent of those aged 65 and above have lost a significant amount to scams. </span></p> <p><span>Baby boomers or those aged between 55 and 64 were the second most affected age group, with 22 per cent reporting upwards of $1,000 lost to skimming. Only 20 per cent of consumers aged 25-34 and 11 per cent of under 25s reported to facing the same issue.</span></p> <p><span>The poll also found that almost a third (32 per cent) of the retirees have tried to avoid using their card when shopping online.</span></p> <p><span>According to the Australian Competition &amp; Consumer Commission (ACCC), Aussies have lost a reported total of $3 million to online shopping scams so far this year.</span></p> <p><span>Money expert at <em>comparethemarket.com.au</em> Rod Attrill said older Australians are especially vulnerable to these types of cons due to difficulties in keeping up with the ever changing technology.</span></p> <p><span>“Especially for scammers online, this particular demographic are also perceived as having more accumulated wealth which makes them an attractive target when grabbing card details,” said Attrill. </span></p> <p><span>“This is why it’s vital for any consumer, old and young alike, to be extra vigilant anytime they use their credit card for online purchases or even when withdrawing money at an ATM.</span></p> <p><span>“If you suspect your financial details were stolen, you should alert your bank immediately for a better chance at recovering your money.”</span></p>

Retirement Income

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Why it’s so hard for seniors to get a credit card

<p><span style="font-weight: 400;">Although the minimum age for getting a credit card for most banks and providers is 18 years old, there’s little said about the maximum age.</span></p> <p><span style="font-weight: 400;">Many banks look at a variety of factors including income and whether or not that person is in any kind of employment, but what are retired people supposed to do in order to get a credit card?</span></p> <p><span style="font-weight: 400;">The question was posed to Noel Whittaker, who used his lengthy experience on personal finance, to answer the question on </span><a href="https://www.theage.com.au/money/planning-and-budgeting/why-is-it-so-hard-for-a-retired-person-to-get-a-credit-card-20190716-p527l4.html"><span style="font-weight: 400;">The Age.</span></a></p> <p><span style="font-weight: 400;">The question he received is below.</span></p> <p><span style="font-weight: 400;">“We have just spent the entire afternoon on the phone to the ANZ bank with whom my husband has a credit card with a $39,000 limit and I have a supplementary card. I would also like a credit card in my name in case his gets stolen when we are overseas. We own our home and have over $500,000 in super (in his name) and I cannot get a credit card! Tried the advocate - they didn’t want to know,” the anguished writer said. </span></p> <p><span style="font-weight: 400;">They went onto explain that they were tired of being treated like a “second-class citizen”.</span></p> <p><span style="font-weight: 400;">“Tired of being a second-class citizen and non person! Worked all my life and paid taxes! Also got turned down by ING because I am 68 years old and don't have an income other than a $333 pension. There must be thousands of us out there who cannot get a credit card. How do I get a credit card if my husband dies? I don't have an income!”</span></p> <p><span style="font-weight: 400;">Whittaker had a simple solution for the question asker and acknowledged their pain.</span></p> <p><span style="font-weight: 400;">“I accept the fact that obtaining a credit card has become extremely difficult for people who are retired. However, the simple solution is a debit card which has no annual fee and can still be used to make purchases,” Whittaker wrote.</span></p> <p><span style="font-weight: 400;">“The good news is that you can never get a shock when the credit card statement comes in because all a debit card can do is access money already held in your bank account. The only bad news you won’t accrue any points but these have been devalued so much in recent years that it’s not worth worrying about.”</span></p> <p><span style="font-weight: 400;">Whittaker was also careful to address the question asker’s concerns about losing a credit card overseas. </span></p> <p><span style="font-weight: 400;">“I appreciate that you may need a credit card for hotel bookings but you can often get around that by using a travel agent, and prepaying your travel costs. I reckon there is a big opportunity here for a lending institution to offer a credit card with the criteria is based on merit.”</span></p>

Money & Banking

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Parents' surprise credit card bill after son books $2,300 flights

<p>A 13-year-old boy has given his parents a shock after he bought a $2,300 return flight from Adelaide to Rio de Janeiro using their credit card.</p> <p>The New Zealand boy booked the NZ$2,400 Qantas tickets through the flight booking site Webjet on a hand-me-down phone which still had his parents’ credit card details loaded, the <em><a rel="noopener" href="https://www.stuff.co.nz/travel/travel-troubles/113150382/autistic-boy-13-books-2400-worth-of-flights-to-rio-de-janeiro" target="_blank">Sunday Star Times</a> </em>reported.</p> <p>The autistic boy’s father, who wished to remain anonymous, said he first became aware of the booking when he received a confirmation email from Webjet, which he and his wife initially dismissed as a scam.</p> <p>“When we discovered it was real my heart started to flutter and I ended up on the phone to Qantas and Webjet trying to sort it out all weekend,” he said.</p> <p>“[The boy] has always been interested in travel and often talks about travelling. We think what’s happened is he’s seen a Webjet ad on TV while my wife was making tea in the kitchen.”</p> <p>The father cancelled the booking in an attempt to get a refund, but he was still hit with cancellation fees. </p> <p>“I explained that he was a minor and on the autism spectrum but there was not much response to that,” he said.</p> <p>On Friday, a Qantas spokesperson confirmed that the case had been reviewed following media enquiries, and the family would receive a full refund. </p> <p>“We’ve taken another look at the case and it is a genuine mistake so we’ll be making sure the fares are refunded without any cancellation fee being applied.”</p> <p>The parents have been told the repayment could take 12 weeks, but the father said he was relieved to gain the money back. He said he would make sure to clear his old phones in the future.</p> <p>“We’ve cancelled our credit cards too, just to be on the safe side. It definitely could be a good lesson for others.”</p> <p>Last year, a 12-year-old Sydney boy made <a rel="noopener" href="https://www.sbs.com.au/news/how-did-a-12-year-old-australian-boy-manage-to-fly-to-bali-by-himself" target="_blank">headlines</a> after he stole his parents’ credit card and flew to Bali alone. Following a family argument, the boy reportedly went to the airport, boarded a flight for Perth and another for Indonesia. He spent four days on the island, where he checked into the All Seasons hotel, drank beer and hired a scooter. The boy was eventually found by the police and taken home by his parents.</p>

Travel Trouble

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“It’s so dishonest”: Bill Shorten snaps back at Leigh Sales' questions on ABC

<p>Bill Shorten and the Labor party's policies have been put up to the test following intense scrutiny from ABC’s<span> </span><em>7:30</em><span> </span>host Leigh Sales.</p> <p>The interrogation went for almost 20 minutes, with Sales grilling Shorten on a range of Labor’s more controversial policies, such as its plan to combat the issue of climate change.</p> <p>Shorten has been bombarded by questions about the cost his emissions reduction target will have on the economy since the beginning of the campaign. It is now his opponent's, Scott Morrison, favourite talking point.</p> <p>Sales asked Shorten whether it was true that the low emissions economy would impose a short-term cost to the economy.</p> <blockquote class="twitter-tweet" data-lang="en"> <p dir="ltr">This election is about the future – which means this election is all about climate change. <a href="https://t.co/BTwfrH3Tnf">pic.twitter.com/BTwfrH3Tnf</a></p> — Bill Shorten (@billshortenmp) <a href="https://twitter.com/billshortenmp/status/1123477629699489792?ref_src=twsrc%5Etfw">May 1, 2019</a></blockquote> <p>Shorten was ready and drew on his meeting with steelworkers in Whyalla on Wednesday.</p> <p>“There is a cost to investing in new technology, but they’re absolutely convinced that the only way we will keep making steel in Australia is by investing in renewable energy,” he said.</p> <p>“Let’s just talk to the two million Australian householders who’ve invested in solar power. There is an initial cost, depending on the deals they can get, but most people who go into solar, they don’t go back do they?”</p> <p>Sales took that answer as an admission that the plan imposes an upfront cost, even if there’s a profit in the long-term.</p> <p>“So if there is a short term economic cost, you have a 45 per cent target for the reduction of greenhouse gas emissions. What will be the cost of that to the economy over the next decade, not in dollar terms but as a percentage of economic growth?” she asked.</p> <p>“It won’t have a negative effect on economic growth. In fact, most of the mainstream modelling shows that our economy will continue to grow,” Mr Shorten said.</p> <p>“But if you have firms that have to be shifting and making the transition to having lower carbon emissions, that may mean that they have less money to spend on other forms of investment,” Sales snapped back.</p> <p>She added, “It may mean they have lower profits, so therefore they have less money to deliver in the form of company tax into the government’s coffers. Those sorts of things could have a spin-off impact onto the GDP numbers.”</p> <p>“The problem with what you’re saying is that you assume that there’s no cost to doing nothing, and there is,” Mr Shorten replied.</p> <p>“I don’t assume that there’s no cost to doing nothing. I accept your position that there’s a long-term benefit. What I’m asking you to do is square with voters about exactly what the short-term cost is of getting to that position,” Sales pushed.</p> <p>“Well my absolute conviction and belief is that if we don’t change, the cost will be far greater than any initial investments,” he said.</p> <p>“If you’re asking me to specify what a particular company and a particular factory will have to do, I can’t do that. Nor could you, nor could the government," the Labour leader continued.</p> <p>Shorten was on a roll and kept talking, despite Sales' attempts to jump in again.</p> <p>“No, no, let’s be fair here, Leigh. Let’s be fair. I’m not going to get caught up in this government game of gotcha, where you’ve got to invent a number, which you can’t possibly,” he said.</p> <p>“The reason why the government’s trying to focus on how much it might cost to put in a new renewable energy system is that they’re trying to distract from the fact they have no climate change policy.”</p> <p>“But if we could stick with Labor...” Sales interjected.</p> <p>“It’s so dishonest, this debate. It’s so dishonest,” exclaimed Mr Shorten.</p> <p>“You say you can’t just pluck a number out of nowhere. You’ve come up with a 45 per cent target. You must have done...” said Sales.</p> <p>“Well sorry, I didn’t pluck that out of nowhere, that was the Paris Agreement, that’s what the scientists tell us,” he said.</p> <p>The pair continued to talk over each other until Sales got her next question out.</p> <p>“As a government, you are adopting that as your policy, you must have done some projections, short term, to what that will mean to GDP. Will it take say, 0.1 per cent off GDP, 0.5 per cent off GDP over 10 years?” she asked.</p> <p>“Both in the short term and the long term, the cost of not acting on climate change is far worse than acting on climate change,” he said.</p> <p>Shorten continued his rebuttal, stating, “The Australian people and business are so far ahead of the political debate, you must be bored by the government’s rhetoric, which wants to simply say we can’t do this, can’t do that. The rest of the world is so far ahead of us it’s embarrassing.”</p> <p>Sales then asked about the internal conflict within Labor over the Adani coal mine in Queensland.</p> <p>“If there’s a miner sitting in Rockhampton tonight and she wants to know – ‘Mr Shorten, do you reckon this mine will be a good thing for my industry and for Queensland?’ – what would you say to her?” Sales asked.</p> <p>“I’d say my view on this mine is going to be based on the best science, whether or not it stacks up. And if it stacks up and passes all the scientific tests, I won’t engage in sovereign risk. We won’t arbitrarily upend things,” Mr Shorten said.</p> <p>“Adani didn’t get the finance, but now they appear to have it. They were talking about a 60 million tonne mine with 10,000 jobs. Now the promises have shrunk,” he said.</p> <p>The next topic was Labor’s franking credits policy, with a focus on 83-year-old Chris Phillips, who is set to lose $9,000 each year under the policy.</p> <p>“Is your policy driving someone like Chris heavily onto the public purse?” she asked.</p> <p>“He already is. And this is the real heart of the issue. When you get an income tax credit when you haven’t paid income tax, it is a gift from the government. You’re already on the public purse,” Mr Shorten said.</p> <p>The pair touched briefly on superannuation and tax, with Shorten rejecting the accusation that he’s making super “less enticing” for Australians.</p> <p>Sales ended the interview with a general question.</p> <p>“Is it fair for a viewer to conclude that a Shorten Labor government will be at its core about the redistribution of wealth? That you want to take more from the wealthy and give more to people on lower incomes?” she asked.</p> <p>“No, that wouldn’t be right. What we want to do is have real change, because frankly, more of the same under this government isn’t good enough,” Mr Shorten responded.</p> <p>“Let’s not dumb politics down to six-second sound bites. I’ll give you, as quickly as I possibly can. We’re going to have real change because more of the same isn’t good enough. </p> <p>"We’re going to get wages moving again. We’re going to take real action on climate change. We’re going to look after three million pensioners and senior health card holders with dental care. We’re going to provide a million Australian families with better child care support. And end the chaos.”</p>

News

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4 things you should consider before switching credit cards

<p><span>Thinking about changing your credit card? Our lifestyle and how we use our money can change throughout the years, so it’s always good to re-evaluate your spending habits from time to time and check if your card still fits the bill. </span></p> <p><span>Here are the four things you should consider before switching to another credit card.</span></p> <p><strong><span>1. Annual fees</span></strong></p> <p><span>The annual fee is not always a deal-breaker – in general, the higher the annual fee is, the more rewards and features the credit card offers. However, if you don’t use your credit card often, you are unlikely to get value out of it as the annual fee cancels out the benefits.</span></p> <p><span>Some cards will also waive annual fees if you spend a certain amount in a year. But if you are not a big, regular spender, a zero-dollar annual fee card might be what you are looking for. </span></p> <p><strong><span>2. Interest rates</span></strong></p> <p><span>Not everyone can pay their bill in full every month – and this is where interest rates matter. Your ability to repay debts may be significantly influenced by the interest rates of your credit card. You may end up getting stuck in a cycle if your card is charging interest rates faster than you can pay off the bills. </span></p> <p><span>When this occurs, you might want to find a balance transfer credit card with a low or zero per cent interest rate for a limited period. You can then move your debt from the old card to the new one, save on interest and focus on getting on top of your balance. </span></p> <p><strong><span>3. Foreign transaction fees</span></strong></p> <p><span>When you are travelling overseas, having a credit card can give you a peace of mind – it makes transactions possible even if you don’t have cash at hand. This convenience comes at the cost of foreign or international transaction fees.</span></p> <p><span>You don’t even have to be abroad to be hit with these fees – if you are shopping online and the merchant happens to be out of the country, the card can still charge you to cover the currency conversion. Most banks and credit providers generally charge between 2 to 3.5 per cent on any purchases being made under these circumstances.</span></p> <p><span>Frequent travellers and shoppers can cut costs by opting for cards that have no foreign currency exchange fees. Many of these cards will also offer other travel benefits, including low to no ATM withdrawal fees.</span></p> <p><strong><span>4. Rewards</span></strong></p> <p><span>You may be a good customer, with regular spending and on-time payments. However, if the rewards that you were promised upon signing up still turn out to be elusive, it might be time to find a new card.</span></p> <p><span>Rewards might take the form of travel miles, points, cash-back, gift vouchers, special offers and more. While these benefits might sound tempting, you most likely have to spend a significant amount on the card to be able to access them. Rewards credit cards also generally come with higher interest rates.</span></p> <p><span>Are you thinking of finding a new credit card? Let us know in the comments.</span></p>

Retirement Income

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5 ways you can save money using credit cards

<p>Credit cards sometimes get a bad rap, and that’s mostly because they can lead you to temptation to spend beyond your means.</p> <p>Used responsibly, however, these little pieces of plastic can actually save you money as banks are constantly running promotions that offer discounts for spending.</p> <p>The key is to pay your bills in full every month, so you don’t incur the astronomical interest rate charged on top of your purchases.</p> <p>Check out these 5 ways that using credit cards can help save you money.</p> <p><strong>1. Dining deals</strong></p> <p>Credit cards that offer dining deals are a foodie’s best friend and the good news is, there are plenty of such cards in Australia.</p> <p>Be sure to subscribe to receive promotional emails and mailers from your banks to find out about current dining deals such as 1-for-1 offers, cashback or complimentary treats at selected eateries.</p> <p><strong>2. Discounts on hotels and flights</strong></p> <p>Keep an eye out for special flight or hotel deals from your credit card of choice.</p> <p>You can also get discounts when you book through hotel booking sites such as Agoda or Expedia.</p> <p>Some cards are specially designed for frequent travellers as you get complimentary use of airport lounges a number of times a year, and free travel insurance if you purchase your ticket using the card.</p> <p>Be aware, though, that some airlines charge a fee when you pay for your tickets online using a credit card, so do some calculations to see if it still works out cheaper.</p> <p><strong>3. Interest-free instalment plans</strong></p> <p>If you need to buy expensive electronic or electrical goods, such as a new TV or laptop, the 0 per cent interest instalment offered by most major credit cards at many major homewares and electrical retailers can come in very handy.</p> <p>It helps spread the payments out over your chosen six or 12 months without the high interest rates you would otherwise incur if you were to pay for it upfront using your credit card.</p> <p>This allows you to better manage your monthly expenses and avoid overspending.</p> <p>Credit card companies make profits on a simple fact of human nature: we buy today and worry about how to pay for it tomorrow.</p> <p><strong>4. Discounts on everyday items</strong></p> <p>Credit cards aren’t just useful for big ticket or luxury goods, they can help you save on everyday items too, such as groceries and petrol.</p> <p>Do your research and work out what the best rewards programs are available in Australia that suits your lifestyle and needs.</p> <p>With the high cost of car ownership, every single dollar counts.</p> <p><strong>5. Collect rebates and cashback</strong></p> <p>If you’re not after dining deals and you don’t like going for holidays, you may want to keep it simple and just collect good old rebates or cashback from your spending.</p> <p>Most cashback cards require you to have a minimum spend per month, such as $500, in order to qualify for rebates.</p> <p><em>Written by Siti Rohani. This article first appeared in <span><a href="http://www.readersdigest.com.au/money/5-ways-you-can-save-money-using-credit-cards?items_per_page=All">Reader’s Digest</a></span>. For more of what you love from the world’s best-loved magazine, <span><a href="https://www.isubscribe.com.au/Readers-Digest-Magazine-Subscription.cfm">here’s our best subscription offer</a></span>.</em></p> <p><img style="width: 100px !important; height: 100px !important;" src="https://oversixtydev.blob.core.windows.net/media/7820640/1.png" alt="" data-udi="umb://media/f30947086c8e47b89cb076eb5bb9b3e2" /></p>

Money & Banking

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Shocking Commonwealth Bank statement shows why credit card limits must be capped

<p>A whopping 1.9 million Australians are struggling with credit card debt, a recent report by the Australian Securities and Investments Commission has found.</p> <p>It remains the number one issue facing callers to the National Debt Helpline, with the problem so huge that in February this year, ASIC was tasked with setting up a cap on credit card limits, based on an amount that can be “affordably repaid” within a set period.</p> <p>In a joint submission to ASIC’s credit card <span style="text-decoration: underline;"><strong><a href="https://asic.gov.au/regulatory-resources/find-a-document/consultation-papers/cp-303-credit-cards-responsible-lending-assessments/">responsible lending consultation paper</a>,</strong></span> the Consumer Action Law Centre, Choice, Financial Counselling Australia and the Financial Rights Legal Centre called for the cap to be limited to two years.</p> <p>“A two-year assessment period would ensure that Australians are not trapped in long term, expensive credit card debt,” the submission said. “We consider that this proposal would significantly reduce the consumer harm being caused by inappropriate credit card product design and lending practices.”</p> <p>Take Mary’s story contained in the submission; she’s a 79-year-old age pensioner who has been struggling to pay off a $1500 credit card debt for 15 years, because of the accumulating interest.</p> <p>Or Assam’s story, a 58-year-old disability support pensioner, who has been unable to work since 2003 due to ill health. His bank CommBank has given him no fewer than five credit cards and jacked up his limit on his CommBank Mastercard from $2000 to $44,600 in 2015.</p> <p>His credit card statement from January 2018 reads: “If you make only the minimum repayment each month, you will pay off the closing balance shown on this statement in about 146 years, five months. And you will end up paying estimated total interest charges of $340,604.78.”</p> <p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://cdn.newsapi.com.au/image/v1/33ea379623497e971a82a88c0ad627ea" alt="Assam’s CommBank credit card statement." width="650" height="366" /></p> <p>Consumer Action Law Centre senior policy officer Katherine Temple told <strong><u><a href="https://www.news.com.au/finance/business/banking/you-will-pay-off-your-balance-in-146-years-five-months-cbas-centuryandahalf-debt-trap/news-story/9cb48ba1668ae4a47d9498ea4de2e927">news.com.au</a></u></strong>: “People who are in persistent credit card debt are actually very profitable to the banks.</p> <p>“People who are struggling to make ends meet tend to be the ones that pay the most in interest and fees, so trapping people in a cycle of credit card debt is often in the banks’ interests.”</p> <p>She added: “Banks have designed and marketed credit cards in a way they are setting many people up to fail. What we see is people often don’t get to the point of default, they are constantly just making the minimum repayments but not really getting ahead in terms of the principal amount owed.</p> <p>“In the industry they call them ‘revolvers’ and ‘transactors’. The intention is to keep people revolving, always having a balance that’s accruing, rather than transacting where you pay the balance off every month.”</p> <p>Although credit cards have always been subject to responsible lending obligations, the assessment has been based on people’s ability to repay the minimum amount, which means people could be left paying off the same debt for decades.</p> <p>The new ASIC rules, which will apply to all new cards issued after January 1, 2019, has been welcomed by consumer groups who have long argued credit cards have “been designed to trap many people in long-term, expensive debt”.</p> <p>Ms Temple said it was “just another example of the banks designing their products in the way that makes them the most money rather than in a way that helps people’s financial wellbeing”.</p> <p>“If they were serious about doing the right thing they would be promoting savings more and selling us products that suit our needs, rather than trying to trap us in decades of debt,” she said.</p>

Money & Banking

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"A huge wake-up call": Big banks' $24,000 rip-off on credit card rewards

<p>If you have a credit card with any of the Big Four banks, you will get just $12 of value out of your rewards program if you spend $24,000 in a year. <br /><br />New analysis by financial comparison website Mozo shows the average net value of rewards credit cards offered by the major banks has fallen 96 per cent in the past two years, following the Reserve Bank’s interchange fee regulation. <br /><br />In 2016, a customer spending $24,000 a year received an average of $284 in rewards. But today, you would need to spend $60,000 to receive the same value. <br /><br />“If you spend less than that the figure’s going to be worse, if you spend more it’s not going to be so bad, so it really depends,” Mozo product data manager Peter Marshall said. <br /><br />“The main point is it’s more important than ever for people to know what value they’re getting out of their rewards versus how much they’re paying to keep that card, and reassess whether they’re getting the benefits that justify it.”</p> <p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://cdn.newsapi.com.au/image/v1/0e4cd915d0eb5d7b8e4afaadbe2f8317" alt="CommBank customers are now in the red. Picture: Mozo" width="650" height="488" /></p> <p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://cdn.newsapi.com.au/image/v1/99d8d6283559f46bf7f2de344b55d9fb" alt="Points earning has dramatically fallen. Picture: Mozo" width="650" height="488" /><br /><br />Mozo’s calculations were based on typical credit card spend of $2000 a month, per RBA data, with introductory bonus points and annual fee waiver offers excluded. The net value was derived from the rewards value minus the annual fee. <br /><br />Last year, the RBA introduced changes that reduced the fees banks could charge each other to process credit card transactions. As those fees were used to fund credit card rewards programs, the rewards program has suffered. <br /><br />“It was basically a nice profit margin that was built into the system for them,” Mr Marshall said. “That’s been capped so it’s reduced the income stream. We’ve seen a range of responses to that — there’s reduced points earning, lower caps on how much you can earn, but also higher annual fees on some cards.” <br /><br />Out of the Big Four banks, Commonwealth Bank cardholders were the worst off, with a customer on the typical spend now $58 in the red under the changes. Westpac customers were the winners with a net value of $48. <br /><br />“Our results are a huge wake-up call for cardholders to start questioning whether their rewards card is worth it after all,” Mozo director Kirsty Lamont said in a statement. <br /><br />“They are now having to spend two-and-a-half times more to earn the same amount of net rewards value they would have received two years ago on the typical annual spend. No longer a card exclusively for big spenders, [American Express] cards generally offer better value for the typical spender.”</p>

Retirement Income

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Nicole Kidman shares the crucial decisions she credits for her daily happiness

<p>Aussie actress Nicole Kidman has shared the micro-decisions she believes helps maintain her daily happiness despite her overwhelmingly demanding schedule.</p> <p>The 51-year-old balances her duties as a mum, wife and award-winning actress all with a smile by making the right choices day in and day out.</p> <p>In an interview with <a href="https://www.byrdie.com/nicole-kidman-skincare-routine--5b35522486b08/slide3" target="_blank"><strong><em><span style="text-decoration: underline;">Byrdie</span></em></strong></a>, Kidman revealed the secret to her happiness, saying she always chooses “to feel gratitude, first and foremost.”</p> <p>“Choosing to sleep in sometimes rather than get up and exercise – give things up so that I can have more time with my kids," she said. </p> <p>The <em>Big Little Lies</em> star also said it was a priority for her to spend time with her husband of 12 years, Keith Urban.</p> <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 658px; padding: 0; width: calc(100% - 2px);" class="instagram-media"> <div style="padding: 8px;"> <div style="background: #F8F8F8; line-height: 0; margin-top: 40px; padding: 33.24074074074074% 0; text-align: center; width: 100%;"> <div style="background: url(data:image/png; base64,ivborw0kggoaaaansuheugaaacwaaaascamaaaapwqozaaaabgdbtueaalgpc/xhbqaaaafzukdcak7ohokaaaamuexurczmzpf399fx1+bm5mzy9amaaadisurbvdjlvzxbesmgces5/p8/t9furvcrmu73jwlzosgsiizurcjo/ad+eqjjb4hv8bft+idpqocx1wjosbfhh2xssxeiyn3uli/6mnree07uiwjev8ueowds88ly97kqytlijkktuybbruayvh5wohixmpi5we58ek028czwyuqdlkpg1bkb4nnm+veanfhqn1k4+gpt6ugqcvu2h2ovuif/gwufyy8owepdyzsa3avcqpvovvzzz2vtnn2wu8qzvjddeto90gsy9mvlqtgysy231mxry6i2ggqjrty0l8fxcxfcbbhwrsyyaaaaaelftksuqmcc); display: block; height: 44px; margin: 0 auto -44px; position: relative; top: -22px; width: 44px;"></div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/p/Bk8YmOKlIDW/" target="_blank">A post shared by Nicole Kidman (@nicolekidman)</a> on Jul 7, 2018 at 1:15pm PDT</p> </div> </blockquote> <p>Kidman said to keep her relationship with her husband healthy, she always needs to stay flexible and always be “willing to adapt to change”.</p> <p>In such a fast-paced world, Kidman says she chooses to ‘go with the flow’ to live stress-free.</p> <p>“I like that feeling of going, you know what? This morning, I’m just not going to do that,” she said.</p> <p>“I’m just going to sit and read the paper, and we’re all just going to kick back.</p> <p>“And I know that we have plans, but we’re not going to do that,” she added.</p> <p>“We’re going to change that. I have a big thing about just being easy on yourself, and on others. To go with the flow.”</p> <p>Although the star keeps on top of current affairs by reading <em>The New York Times, The Washington Post</em> and <em>The Wall Street Journal</em>, she exercises when she needs to get away from it all. </p> <p>In the interview, Kidman confessed that she likes to get massages to ease stress, revealing that she has been trained as a masseuse since the age of 17.</p> <p>“It’s an interesting story because my mother was diagnosed with breast cancer when she was 45, I was 17, and I became a masseuse and did a course because we couldn’t afford for her to get massages after her chemo and her radiation,” Kidman said.</p> <p>“We didn’t have enough money. So I learned to give massage. And then I really fell in love with giving massage.”</p> <p>Kidman also said that making decisions such as “saying thank you and smiling” also allow her to live a fuller life.</p> <p>Do you agree with Nicole Kidman’s tips? Share your thoughts in the comments below. </p>

Movies

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Can you spot the 2 glaring mistakes on this bank's credit card?

<p>One of Singapore’s top banks has released an exclusive gold-plated credit card for its high-rolling millionaire customers.</p> <p>However, the unveiling of the credit card issued by United Overseas Bank (UOB) was overshadowed by two glaring mistakes on the plaque it was displayed on.</p> <p>Can you spot the two mistakes on the diamond-studded plaque?</p> <p style="text-align: center;"><img width="498" height="645" src="https://oversixtydev.blob.core.windows.net/media/7819322/1_498x645.jpg" alt="1 (157)"/></p> <p>The plaque reads: “For those who value exclusivity in it’s most extinguished form.”</p> <p>“They should have employed a better copywriter to 'extinguish' themselves from the competition!” noted one social media user who posted a photo of the plaque.</p> <p>Commentators also speculated whether the word was meant to be written as ‘distinguished’ or ‘exquisite’, while others pointed out that there was an unnecessary apostrophe in ‘it’s’.</p> <p>The UOB exclusive Reserve Card is offered only to UOB Privilege Reserve wealth management service clients who keep above a minimum balance of $2 million in assets with the bank.</p> <p>Social media users quickly criticised the copywriting on the plaque, with one saying: “I’m just glad there is a card that is designed for firefighters finally.”</p> <p>“When you have 1 million to spend, I guess you would need to extinguish the heat from swiping the card,” another wrote.</p> <p>The bank has since said that the plaque was a display for a promotional event earlier this week and it is not the final copy.</p> <p>“The promotional text that was printed only for a table display at a private event last night had been overlooked during our clearance process,” Ms Choo Wan Sim, head of Cards and Payments Singapore at UOB, told <span style="text-decoration: underline;"><em><strong><a href="https://www.channelnewsasia.com/news/singapore/diamond-embellished-uob-reserve-metal-card-10451802" target="_blank">Chanel NewsAsia</a></strong></em></span>. </p>

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