The banks are urging customers to take on deeper debt loads whether they can afford the repayments or not, a new study by the Australia Institute claims. read more..

If you’ve gotten yourself buried under a mountain of debt — namely credit card debt — you’ve likely seen products and services advertised which claim to be able to help you. They might claim to help you pay down the debt faster, save money in the process, or push themselves as tools that will ultimately help you improve your credit file. But should you waste your time, and money, on these credit repair kits and related things? In most cases, no.   read more..

Let’s say you suddenly have an extra $5000 to “play” with. You need to make a decision. Should you put it towards paying off existing credit card debt? (Let’s say you have $8000 in credit card debt for example’s sake.) Should you put it into savings and earn a very modest, but relatively stable, amount in interest? Or should you invest it, potentially earning even more in interest? read more..

As credit card interest rates creep higher along with the Reserve Bank’s rate rises, 20% p.a. is becoming increasingly common and repayment costs are soaring.

As an example, a balance of $10,000 on a credit card with rates of 20.71% leads to a 2.5% minimum monthly payment of about $250. A card holder who repaid just that amount each month would require five years and nine months to discharge the entire balance. The total interest charge would be $7,126, or just over 70% of the original principal. read more..

So, you’re having a baby. Congratulations! With a new addition to the family comes new expenses — especially up front expenses as you prepare. It can be tempting to use credit cards to pay for these things — setting up a nursery, buying a crib and car seat, new baby clothes, and more. But should you? read more..