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Tag: Savingsguide.com.au

  • The Top 5 Reasons You’re Still In Debt

    debtToday we feature a Savingsguide.com.au Australia article on the hang-ups you might have with money that could be stopping you from recovering from debt issues.

    This article is posted in its entirety in aid of our ‘Make Credit Work For You’ section, helping you to stay credit savvy, and giving you the best chance to prevent credit rating defaults and have your credit file looking its best.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Below is Savingguide’s article about why it is you might still be in debt:

    The Top 5 Reasons You Are Still In Debt

    By Alex Wilson, Savingsguide.com.au

    Have you ever wondered why it is you are always in debt? I have. It’s much like trying to lose weight, you always find yourself secretly knowing what you are doing wrong but never wanting to admit it.

    This is what led me to start thinking about some of the reasons we as consumers remain in constant debt. While we probably know that we are doing these things, it’s not until someone calls us up on it that we realise we need to fix it.

    So here are the top 5 reasons that you continue to have a credit card debt, personal debt or any other kind of debt.

    Tell me if you agree or not at the end as I would love to know your thoughts on this.

     

    5. You earn X per day, but spend Y

    I did the simplest thing the other day. I got my monthly salary, divided it by the number of working days in the month and found out how much money I make, on a daily basis, after tax.

    What astounded me was that it wasn’t a whole heap when you factor in that each day I buy train tickets, coffees, food and the odd magazine or gift.

    One of the biggest reasons we as consumers remain in debt is that we end up living to work, instead of working to live. Do you really want to spend all that money on a work day when it’s bit by bit taking away from your daily earnings?

    Do the math – figure out your daily rate and then do a rough calculation of how much you spend on any given day. It’s scary.

     

    4. You focus on what you want, not what you have

    Another reason you are still in debt is that you forever focus on the things you want, not the things you already have.

    Stop desiring over clothes, cars, fast food and other easy ways to spend. Start focusing on the clothes you already have, the car you already own and the food you already have in the cupboard.

    Consider reading about how to stop buying stuff to solve problems – it might give you some ideas on how to make do or assess whether you really need something.

     

    3. You swipe credit, delaying your rational thinking

    Swiping a credit card obviously puts you in debt. Another thing it does is disconnect you from the reality of your finances. Money becomes a play thing.

    Try and reconnect with your money, use only cash for a while. It gives you a better sense of what you are spending. Parting with a $50 note is much harder than swiping a card.

    This mentality of delaying your rational money saving thinking is partly to blame for why you remain in debt. Always opt for cash where possible.

     

    2. You have no clue about expenses, their amount and their due date

    You know you pay the mortgage, phone bill, Foxtel bill and more – though you don’t really know how much they all cost as a whole.

    Yes the phone bill is only $29, but when you add it onto the list of other expenses that recur every month, it quickly gets out of control.

    Learn the total of your expenses by setting up a direct debit account that is solely for recurring expenses. After a month or so you will quickly see the stand alone expense transactions and it will help you calculate what you pay on any given month.

    From there, open up your work PC or home PC and make a calendar in Outlook or Google Calendar. Make recurring appointments on the days these debits come out of your account. This means you will always know in advance what expenses you have coming up.

    I even set mine to alert me on my phone 24 hours before they are due. It keeps me in charge of my expenses and fully understanding of just how much I am spending.

     

    1. You have no budget and no focus on repaying debt

    Another reason you remain in debt is because you are not proactive enough. Having a budget is one thing, but what you really need is a budget that focuses on finding spending leaks that can be repaired and used to fund extra debt repayments.

    Read more about budgeting to get out of debt here or alternatively, check out the Savings Guide Budget Spreadsheet here.

    A MyCRA Credit Rating Repair tip to stay credit savvy…

    If you are educated on credit reporting in Australia, you will save money. Know what the rules are around credit reporting in Australia, and know what your credit file says about you. If you discover inaccuracies on your credit file you can save yourself money by having them removed.

    If you have neither the time, nor knowledge of legislation that is required to deal with Credit Providers, a credit repairer can advocate for you to make the case for removal of inaccurate defaults from your credit rating on your behalf.

    Image: artur84/ www.FreeDigitalPhotos.net

     

  • Use a budget to take advantage of low interest rates

    budgetIf you didn’t already know, interest rates are now at their all-time lowest at a reserve rate of 2.75 per cent. And banks have begun to lower their interest rates – which is good news for borrowers. In this week’s Make Credit Work For You post, we look at how can you best benefit from those cuts by saving.

    You might be saving for a home, or you might be saving in your home – but we show you how to budget. If you’re saving for a home loan, now seems like a great time to purchase – with interest rates at their all-time lowest. If you haven’t quite made it there with your deposit, we look at how a strict budget now might get you there quicker. If you own your own home, take advantage of these low interest rates by paying down your mortgage as fast as possible. This can give you space to re-borrow, to invest or to renovate in the future.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    When interest rates are low, you can borrow or if you have current debt, you can pay your debt down in less time. We show you how you can do that, with tips from Savingsguide.com.au. Their article ‘A Guide On How To Budget To Save Money’ caught my eye this week. With new credit laws coming, and new information about you becoming available to lenders very soon, I believe it’s time to help Australians develop some really good credit habits, and to have their credit reports reflecting that.

    Nothing helps with credit habits better than a budget does. As soon as you start with a budget, it forces you to take stock of what you have, and become aware of your spending and credit habits. Australians in that frame of mind are more prepared for next year’s changes to Privacy Laws. And prepared they do need to be. Borrowers will be under the microscope. And they need to be on top of their game when it comes to their finances to not be disadvantaged by credit reporting changes. Let’s look at an excerpt from Savingsguide’s article on how to create a budget:

    How to create a budget

    To make a budget, you must consider the following:

    Income

    Decide whether your budget is going to be weekly, fortnightly. I would usually choose whichever budget aligns with the regularity of when you get paid. Once you’ve decided, write down all the income you receive in that month.

    Expenses

    Write down everything you spend in a week. Chances are you won;t get it right on the first stab, as we spend unconsciously. Here are some ways to track what you’re spending for your budget:

    Keep a spending diary. Keep all your receipts, and tally them at the end of the week.

    Go through your daily bank account, to check for debits from your account (insurance, membership fees et) that you might not even have be aware of.

    Use a tracking app, such as Expense Manager or Expenditure.

    Are you in the red? Or in the black?

    Tally up your figures, and you’ll have an initial idea of whether you are running your finances in the red or the black. If you’re in the black, fantastic! You now can just add some extra space in your finances. If you’re in the red, a budget will help you to get back on track. Why not colour code using red and black to help you?

    Analyse where your money is going & where your budget is leaking

    Where is the money heading? What area of your life is draining your finances the most? Chances are, if your budgets look anything like mine, entertainment costs are always shocking. The amount I spend unconsciously on food, shows and late night tipples are, without a doubt, the major unnecessary drain on my income.

    What are your essential costs, and how much do you have left over once they’re paid for?

    Trim the fat from your budget

    Now look for where you can cut back. Discretionary spending is a major source of savings in a budget. Aim to reduce your spending, not cut it out entirely. Great budgets are consistently refined and improved, so start relatively gently. How much do you need to save to get into within your income? Where can that come from easily, and sustainably?

    Consider these points:

    Housing costs should only comprise 30% or less of your net income. If it’s costing more than that, perhaps it’s time to make some big decisions about where or how you live.

    The average Australian household spends the same amount on alcohol as they do in utilities per week. If that’s the case, there is a major saving opportunity there.

    We should always consider what we have (in the pantry, in the house to sell) when writing out budgets. We should aim to declutter our life to add extra money to our budget. Sell the stuff you don’t need people! Draft budget

    You now have a draft budget. I would call it a draft, as it is a work in progress, one that needs continual revision and maintenance. You should have allocated a general sum to each section of your life, including a sustainable and sensible amount you will be saving per week.

    Tips to help you succeed with your budget

    For the best results when budgeting, you should consider these three core principles:

    Automate your money. As soon as your pay comes in, automatically move your money into the sections you have decreed for your budget. This means money gets automatically deposited for rent, debt repayments, savings etc. We can be our own worst enemy, so take yourself out of the equation.

    Discretionary cash. For your entertainment budget throughout the week, I like to have it in cash. The reason? Because once it’s gone, I know I’ll just have to stay in and watch TV until next week.

    Keep it simple. It’s essential to not start out too strictly with a budget, it’s often where people fall down (more on this below). Remember, you can always save any money that’s left over and you can always change the amount you’re budgeting throughout the week.

    Maintaining your budget

    Once you have a budget, you will find yourself needing to occasionally maintain it and update it as you go. Track your budget progress

    The absolute best way of maintaining enthusiasm and drive is to watch how your finances have improved. Look at your dwindling debt, or increasing emergency fund. You’ll feel empowered and capable of continuing all the good work. Use a budget program

    Apps such as iReconcile or Moneybook can be a great way to easily manage you budget if you’re technically minded. Alternatively there is the Savings Guide made budget planner for purchase here.

    Constantly revise your budget

    I can’t stress this enough. Budgets are ongoing processes- sometimes they’re too harsh, sometimes they’re too soft. Could you save more? Are you living at an absolute pinch, and eating only two minute noodles? Extremes are never good, and great personal finance is about sustainable saving.

    Keep your budget goal orientated

    It’s easy to lose motivation, and everybody does. The key is to continue to look at your goals, adapt your goals and celebrate how much closer you are to achieving them.

    Fixing your budget

    Got a problem with your budget? Here are some solutions to common budgeting woes.

    Losing motivation: Your budget fit isn’t right. Either your budget is too tight, and you’re unhappy or it’s too loose and you’re not seeing the changes you need. Use some trial and error to work out what fit works for you. You can change your budget figures from week to week, until you get it right. The important thing is it’s both comfortable and effective.

    Broke the budget: It happens to everyone. Don’t give up on the whole thing because of one bad week. It’s a slip up, not game over, so just move on.

    Forgotten expenses: A major expense can easily be forgotten, and can easily undermine a lot of hard work when it it is. Don’t panic, this is why we budget, to ensure that unexpected expense is covered. Note the expense in your revised budget, and you can be sure you won’t have to worry about it again.

    You get a pay raise: Add it into your budget, but aim to invest the raise in your savings or debt repayment. You’ll be amazed at how quickly your finances improve, and how budgets can enable you to live within your means.

    If you have tidied your budget up, and managing to make headway with savings, it is a good time to take stock of what your credit file says about you. Before you apply for a home loan, check that your credit report is accurate and up to date. Each year you are entitled to a free annual credit report – and if you haven’t ordered one this year, you should.

    You can request a free credit report through Australia’s credit reporting agencies such as Veda Advantage, Dun & Bradstreet or Tasmanian Collection Services. You may need to contact all of these agencies. A report will be mailed to you within 10 working days. If it’s urgent you can request one quicker for a fee.

    Check that everything reads correctly. If there’s anything you’re not sure about – particularly credit listings which might hold you back from obtaining credit, address them with your Credit Provider before you apply for credit.

    To get help to make a case to dispute your credit listing, you can contact a credit repairer. Click here for more advice on this.

    Image: patpitchaya/ www.FreeDigitalPhotos.net

  • Fixing up Your Finances

    repairing financial damageIn our Make Credit Work For You spot this week, we look at how to dig yourself out of financial strife. ‘Repairing Financial Damage’ was written by Fran Sidoti over at Savingsguide.com.au. We hope it helps if you are experiencing some financial difficulties.

    MyCRA Credit Rating Repair  www.fixmybadcredit.com.au. https://www.facebook.com/FixMyBadCredit.com.au

    Repairing Financial Damage

    No matter how good we are with money, life can tend to get in the way of our best intentions sometimes. Whether you’ve had to dip into savings or accrued some debt on your credit card, it’s very easy to get in a spot of financial bother. If you want to dig yourself out- and pronto- here are some things you can try.  

    Set Financial Goals  

    Probably you already have some. But it’s worthwhile revisiting them, to reconfigure what you want from your finances and how you intend on getting there. Are your financial goals the same as they were 6 months ago? Has your financial situation altered, without you changing your financial set-up? Write out your short, medium and long-term goals, it doesn’t even matter how far-fetched they are. Writing out our goals is the one area in life where we can be as unrestricted as we please.  

    The Road Map  

    Now, how do you intend on achieving those goals? Was your budget a bit too stringent, or perhaps a bit too lax? Is your financial situation sustainable? If you feel as if your set-up isn’t tenable, then what needs to change? Perhaps your expenditure is too high or you need to consider other income sources to get you where you want to be in 5 and ten years time.  

    Financial Fix Up  

    Probably your short-term goals are now a bit different considering you’ve got a couple of things to fix up. If you’re looking to restore depleted savings or pay off a bit extra on your credit card, analyse what you can change in the short-term to clear yourself as quickly as possible. What expenses can you cut down on? It’s amazing to think that organising your food for the week- for example- could be enough to pay an extra $100 into your savings or credit card, and get you well on the way to recovery. If your expenses are already as tight as they can be, look at ways to earn some extra income for the short-term. You could check out freelance work, or write some blogs online. Maybe a couple of weekends helping out your mates would do the trick.  

    Structured Repayment  

    If that isn’t going to fix the issue quickly enough, or if you’re paying high interest, think about consolidating your debt into a loan and having a structured repayment plan, It could give you the consistency you need to organise your budget and will almost certainly allow you to do at a lower interest.  

    Stay Positive  

    The worst thing to do would be to beat yourself up about it. Like all things, having rock solid finances is an ongoing process and no one has it perfect all the time. Things happen, and feeling negatively about the situation is only making your life harder unnecessarily. Negativity will also make it harder to approach the situation and make it all the more tempting to stick your head in the sand. Better to reflect on the positive changes you’ve made to your finances, and how you are now completely equipped to deal with the setback. We get better at salvaging a challenge every time and although we’d all like to never have one, the chances of smooth sailing all the time are slim. So get back on the horse and you’ll be right back on top sooner than you think.

    If your credit file has met with some setbacks during the process, then you will want to reflect on what to do for your future. It really depends on where you want to be over the next five years. Your credit file will show up with any credit defaults for the next 5 years, and any late payments for the next 2 years. If you have a major financial goal you want to achieve over the next 5 years, such as buying a property, or a business venture, then you’ll need a good credit rating to borrow. You may be prevented from accessing mainstream credit (at affordable interest rates) if you have bad credit.   All may not be lost though. Depending on the circumstances surrounding your default you may be eligible for credit repair. To check this out, you can contact us on 1300 667 218.

    For more information on credit repair and how we might be able to help clear your credit file permanently, visit our website www.mycra.com.au.

    Image: David Castillo/ www.FreeDigitalPhotos.net

  • Money: The Top 4 Relationship Busters

    relationship financeWhat are the ways your relationship may be at risk due to money matters? Last week we featured how your credit rating can be at risk when you enter joint debt. This week, we look at how your relationship in general can be impacted by finances. To follow we feature a great article from SavingsGuide.com.au, titled ‘Relationship Finance: The Top 4 Romance Busters’. Here it is in it’s entirety:

    Relationship Finance: The Top 4 Romance Busters.

    Money is the major reason for divorce, as well as the major source of friction in many relationships. Researchers are increasingly seeing that ‘financial cheating’- as in, lying or hiding financial issues from a partner- is as damaging as the traditional kind. Likewise, finding a financial simpatico with another person is one of the major pillars of a good relationship. So what are the top 4 relationship busters when it comes to money, and how can we avoid them in our own relationship? Inspired by an article from Investopedia.

     Weigh Me Down

    It’s unlikely, in the modern world, that two people can come together without one or both bringing with them some kind of debt. From youthful indiscretions with a credit card, student debt, a mortgage, a car loan- debt is a major factor in most of our financial arrangements. Sadly, when it’s not dealt with openly, it can also be a major sticking point i our relationships. The Fix: The only course is to be straight up. This debt is going to be a drain on your finances for a while yet, and will mean you can contribute less to the joint finances. That’s the reality of the scenario, and honesty is the only way to approach it. Your partner will deal with it, or they won’t.

    Joint Or Separate

     Relationship finance is often regarded as a tell-tale sign for the overall wellbeing of the couple. Serious judgement calls are attached to how couples deal with their finances. Either they split everything, and “they’re not committed”, or they’re completely financially entangled, and “heading for disaster”. Trying to organise your finances according to what the rest of the world says will only strain the relationship. The Fix: Your relationship is unique, as your financial organisation should be. The key is to communicate with your partner about what they feel is appropriate, and be open to change it as the relationship evolves.

     Know The Type

     When you get together, nothing is more important than whether he likes Neil Young or not. We tend to spend so much time on the inconsequential, often the really big issues get left to the side. However, you’ll be able to get a pretty good feel for how a person deals with money. Spender? Saver? Frugal to the point of no fun? These are big issues, and pretending otherwise is just putting your head in the sand. The Fix: Be open with how you see money, and where you would like your finances to be in 5 and 10 years. Talk about how their parents dealt with money, research shows it’s a big indicator.

     Little Tykes

     Every self-help book in the world has told us what issues to avoid talking about when we start a relationship. Heaven forbid you scare him off, talking of kids or money. Well, the final major relationship buster is a combination of the two- the finances of having kids. The Fix: Generally, you ascertain whether you want to have kids first, but with the costs of raising a kid now hitting the $1 million mark, you also have to discuss how to structure your finances to adapt, especially with one partner out of the workforce for a while.

    As we discover in this post, and also last week in the post ‘How to Avoid Sexually Transmitted Debt’ the most important aspect to the meeting of financial minds is to keep an open dialogue about money. Talking freely and honestly, preferably keeping the emotion out of your discussions will save your relationship. It would also help you to avoid surprise bad credit from your partner.

    If you have Sexually Transmitted Debt  – that is defaults, writs or Judgments that you didn’t initiate, and you believe are impacting your credit file unnecessarily, talk to one of our Credit Repair Advisors about where you might stand with getting your bad credit repaired. Ph 1300 667 218.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • Save your pennies for a good cause…Buy Nothing New Month

    Wants and needs are two different things. But in the throes of spending – whether it be purchasing that new TV, or replacing your house with the latest furniture, the two concepts can be pretty difficult to separate. This thinking causes many of us to buy more than we can afford, and we find ourselves struggling to pay back credit. Too many runs of this, and we end up defaulting on our repayments and a Credit Provider somewhere penalises us with bad credit that takes 5 years to shake off. Education and awareness is the key to changing this kind of behaviour – which is natural in all of us. That’s why when we came across October’s “Buy Nothing New Month” – we thought it was a great idea. We hope it helps you.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    Could you last the rest of the month without buying anything new? That’s the concept for “Buy Nothing New Month” which runs until the end of October. The idea is to only buy necessities, and say a big NO to every other shopping expedition which could see you parting with your hard earned money during October.

    Savingsguide.com.au ran a post on Tuesday on this topic ‘Buy Nothing New Month’ and we think it’s a terrific concept.

    Buy Nothing New Month (BNNM) was created by the Sacred Heart Mission in a bid to encourage mindfulness about spending habits. The official BNNM website for has a real edge to it – it seems aimed at changing the minds of young people and building a better future. Savingsguide.com.au’s Toria Phillips writes “isn’t it nice to see more people getting on board as it become more socially acceptable, heck maybe even cool, to be a saver?”

    Here’s more from BNNM about what the month is all about:

    Buy Nothing New Month is the global movement for collective, conscientious consumption.

    It’s a little idea, that started in Melbourne and is spreading to the Netherlands and USA.

    In 2011, Sydney Morning Herald ran a poll asking “is Buy Nothing New Month a good idea?” Over 10,000 voted. 82% said “yes”

    It’s a one month challenge to buy nothing new (with the exception of essentials like food, hygiene and medicines)

    Buy Nothing New Month isn’t Buy Nothing New Never. Nor is it about going without.

    It’s literally about taking one month off to really think, “Do I really need it?” If I do, “can I get it second-hand, borrow it or rent it? What are my alternatives? Can I borrow from a friend? Can I swap with my neighbor?”

    It’s about thinking where our stuff comes from (finite resources) and where it goes when we’re done (often landfill) and what are the fantastic alternatives out there to extend the life of our ‘stuff’.

    It’s easy. It’s fun. It’s moving from consumption-driven to community-driven.

    It’s good for us, our wallets and our planet.

    Hop on board!

    Don’t worry that the month is almost out – take the last week or two to give it a go – or maybe run it into November if you can. For tips on how to do it – visit the BNNM website’s How to Page.

    Back in September we wrote an article involving data from the Australian Bureau of Statistics which showed one in seven Australians spend more than they earn – ‘Are you spending more than you earn? You’re not alone.’ These are alarming figures and it makes me realise that not enough Australians understand the power of credit. It is a great concept, but as long as we make it work for us. We should use it to enhance our lives so that we can spend time with the ones we love, or to really improve our quality of life. Not make ourselves slaves to it. All it does is end up becoming a monkey on our back when we are living with bad credit history.

    This disease of consumerism also known as ‘Affluenza’ (when too much is never enough) is mentioned on the BNNM website, and it is an idea that some Australians have taken on board, and it has enabled them to change their ‘stinkin- thinkin’ about money.

    Is this you?

    “We all know this stuff but we forget. Or, more accurately, we choose to forget. We want what we want and we want it now. So, we cram that whining voice inside our head telling us to be frugal deep into our subconscious, buy the thing we like, and only release him later. Of course, by this stage it is invariably too late to undo the damage so we shrug our shoulders, say “oh well” and convince the whiny voice that we “forgot” and that it was really all beyond our control,” Savingsguide.com.au’s Toria Phillips muses.

    If so, put that little voice on loudspeaker! Change your stinkin thinkin – and take the ideas of Buy Nothing New This Month and apply them in your life. This won’t guarantee that you do not make the occasional bad choice, and it won’t guarantee that you aren’t a victim of credit rating errors which lead to bad credit history. But it gives you a good sporting chance of keeping a clear credit file and having the real financial independence that everyone deserves.

    For advice on how to restore your good name and have a clear credit file or help to dispute unfair credit listings, contact a Credit Repair Advisor on 1300 667 218 or visit our main site MyCRA Credit Rating Repairs for more information on what we do www.mycra.com.au.

    Image: Pixomar/ www.FreeDigitalPhotos.net

  • Bill Shock: telco bills ruining credit ratings

    Botched phone plans and lack of data usage monitoring is leaving many Australians shell shocked over their mobile bills, with bills so large many can’t pay up or refuse to pay up, leading to an increased rate of defaults. We look at what is happening with Telco consumers, the new laws that have come in to combat bill shock, and some practical things that you can do to prevent it happening to you, and threatening your good credit rating.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    A large number of current credit listing complaints we receive from telco consumers relate to data usage on mobile phones. Consumers are confused when it comes to data allowance on their smartphones, and the providers up till now, have not been helping.

    Often clients claim they have gone over their allowance really quickly, or the plan they were put on was not appropriate for what they intended to use their mobile internet for. Often they can have great difficulty in cancelling the accounts or coming to a resolution with telcos over these billing issues.

    Our current statistics show almost 26% of our credit repair clientele in the 12 months to July were telco customers.

    Consumers have either reluctantly paid the bill, thought the matter was settled, only to find they were defaulted anyway, or they have just refused to pay the bill until they got some resolution – but have copped a bad credit rating through the account being more than 60 days in arrears.

    Either way, they were dished out at least 5 years of bad credit from the episode unless they have been able to make a successful complaint.

    Complaints numbers

    Recently the Telecommunications Industry Ombudsman (TIO) surveyed its services. It counted 52,231 new complaints about telcos received between January and March 2012. Almost two-thirds were about mobile phone services.

    The TIO reports new complaints about over-commitment caused by inadequate spend controls have over doubled in 12 months (4,282 in the January-March 2012 quarter, compared to 2,181 in the same quarter in 2011). In the same periods, new complaints about disputed internet charges increased 180 per cent (From 981 to 2,823).

    “It is well known that more internet browsing and downloads are now done on mobile phones and other mobile devices. With this change in consumer behaviour, we have seen complaints about excess data charges almost treble over the last year,” Ombudsman Simon Cohen said.  “The incidence of these complaints will reduce if consumers are only contracted for services they can afford, and where spend management tools such as notifications and usage meters are accurate and reliable”.

    The powers that be have heard the many complaints. Some changes have been swiftly made to improve transparency and service for telco customers. A revised Telecommunications Consumer Protection Code has been made in conjunction with the Australian Communications and Media Authority (ACMA) which will amongst other things require telcos to provide their customers with notifications when they have used 80% and 100% of their data usage in the plan.

    These changes come after pressure from ACMA for Telcos to offer better protection for consumers, or face external regulation.

    For more information on the TCP Code, see our September post ‘Telco bill shock should in theory now be a thing of the past.’

    In the meantime, many consumers are still facing bill shock. We look at what you can do to prevent it.

    Preventing Bill Shock

    Savingguide.com.au published a great article late last week detailing some practical things that you can do to avoid bill shock. Here is an excerpt from ‘How to Avoid Bill Shock’:

    Read Your Contract

    I’ve said it before and somehow I feel I shall say it again: read the contract. From start to end. Before signing up to anything. Now, let’s just say you have already signed up and you didn’t read it before, you are not off the hook. Read it now. I’m serious, go do it… like, right now!

    Now that you’ve read your contract, you’ll know exactly how much data you get for your regular fee and how much you’re going to pay if you exceed that limit. Without this knowledge, you’re really just playing a guessing game and you’re probably going to lose.

    Don’t be Silly

    Seems obvious, doesn’t it? Yet here we are. If you are on a limited data allowance, don’t fritter it away on silly things! When I first got my smart phone I was so enamoured by the fact that I could get the internet on my handset that I would lie in bed, checking the week ahead’s weather on my mobile rather than simple make the walk to the study and use my PC, on which the internet is virtually limitless! Fortunately, I did not have to learn the hard way but many people will. Don’t be one of them.

    Start Downloading

    I know, I know, I just told you not to download stuff but this is the exception. Downloading the right apps is going to make all the difference, in fact these two apps are the best way to keep your data use under control.

    Data Usage Monitor

    A data usage monitor like 3G Watchdog (Android) is a brilliant addition to your phone. Simply enter the date your billing cycle commences and your data allowance, and a little symbol appears on your phone’s desktop, changing colour to warn you when you’re reaching your limit.

    Programme Closing

    A programme-closing app is your next best friend. Apps like Advanced Task Killer enable you to close any programmes that might be running without your knowledge with the push of a button. And without programmes secretly running, chewing into your data allowance, you’re much less likely to suffer that dreaded disease, bill shock.

    This is great advice. But what about if you already have a phone bill that has left your head spinning?

    How to Dispute That Shocking Mobile Bill

    1. Attempt to resolve the dispute with the Telco first. If a bill has just popped up you don’t agree with, let your Provider know, and DOCUMENT ALL CORRESPONDENCE WITH THEM (and document who you speak with if you are calling).

    2. You may need to make a formal complaint in writing. If there is no resolution over the telephone, set out what specific resolution you require, and all the details of your complaint. The telco has 30 days to answer any written complaint you make.

    2. Get all responses in writing. The matter may seem at an end, but sometimes people believe they have sorted it out only to find out later they have been defaulted anyway. If you have come to a resolution with the telco verbally, get it in writing and make sure it clearly states what will happen from here.

    3. If the matter can’t be resolved to your satisfaction internally, take your case to the Telecommunications Industry Ombudsman. The TIO will make a decision on the matter, and their decision will be final. Make sure you provide as much evidence as you can for the Ombudsman to make an informed decision – you may only get one shot at it.

    4. If at any stage you have a credit file listing from a Telco which you believe shouldn’t be there, you can undertake professional credit repair services. The credit repairer works on the consumer’s behalf to remove credit file listings which contain errors or inconsistencies or just out and out shouldn’t be there. It gives the consumer the best chance of presenting the best case for removal of a disputed listing, and actually having an unfair listing removed completely off your credit file. The credit repairer can also escalate the matter to the TIO on the client’s behalf if necessary.

    If you would like help disputing your telco default or other credit listing, contact a Credit Repair Advisor on 1300 667 218 or visit our main website for more information MyCRA Credit Rating Repairs www.mycra.com.au.

    Image: Ambro/ www.FreeDigitalPhotos.net

     

  • Consumer advocate Graham Doessel, showing ordinary Aussies how to avoid bad credit history from credit card debt

    A major source of bad credit history is credit card debt. People spend more than they can afford, and may even take out one card to pay off the other – and never really clearing their debts until one day their credit rating is tarnished. Credit success begins with choosing the right credit card. It’s important to read the fine print before you decide on a credit card. Avoid getting enticed by rewards and low interest periods, and take the time to understand what you can afford so you can choose the card that fits you and your lifestyle. That’s the key point to avoid bad credit history through credit card debt.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au

    Australian money saving website, Savingsguide.com.au posted a great article yesterday on choosing a credit card. They mentioned how essential choosing the right credit card is to your finances – it can be the difference between good and bad credit history. Here are their 5 tips for choosing the right credit card.

    5 Tips When Getting A Credit Card by Savingsguide.com.au:

    1. At The End Of The Month. If you’re unable to pay off your credit card at the end of the month, Yahoo! Personal Finance suggests looking for cards with 45 days of interest free and then cards that have the lowest interest on purchases. I would also suggest keeping credit use to a minimum until you’re able to pay it off at the end of the month.

    2.  Fee. If you’re planning on using your credit card frequently and for rewards programs, then an annual fee might be a worthwhile spend. You could be looking at anywhere between $50 to $250 a year, but if you’re redeeming your points for money-saving purchases like flights or accommodation, it might be a worthwhile investment. If, however, you’ve got the card as an emergency back up when you go overseas, you may as well just get a card that doesn’t have an annual fee.

    3. Interest Rate. When getting a credit card, it’s essential to weigh up whether any outlay on the card is a worthwhile investment. The same is as true of interest as it is of the annual fee. The card might have a high interest rate but if you can be certain you’re going to be able to pay it off at the end of every month, then those cards can also offer great rewards. Often, it’s stipulated you have to be earning over a certain amount to qualify to use the card.

    4.  Use It Everywhere. People look dismayed when they come to my work and pull out an Amex or Diners. Sure, we can transfer it. At the cost of a 3% surcharge, which usually precludes anyone from wanting to use it. Amex and Diners come with great rewards but a lot of businesses, at least in my town, have no interest in processing them so you have to rely on two cards. Recently, however, cards have been released where they are two cards in one (an Amex and Visa, or an Amex and Mastercard). So if you’re keen for the reward points, it could be worth investigating that option.

    5. Bonuses. Credit cards are big business, and they want to make sure that they keep yours. Hence, the amazing world of bonuses for your credit cards. The most obvious, and the most commonly used, is the protection should you be a victim of fraud. If it happens on your credit card, the bank will usually cover you as part of your credit card contract. If the same thing happens on your debit card, you’re not always as lucky. Other bonuses can include short-term insurance on items bought on your credit card or little luxuries like privileged access to concert tickets when they go on sale and the best seats. If a credit card fulfils all your other criteria, a bonus scheme could be a great way for you to save a bit of money throughout the year.

    Some great advice there on choosing credit cards. One important point is to not be sucked in by promises of rewards or other special deals when choosing credit cards – concentrate on the fees, interest and repayments. If you can afford all of that, then look at the possible benefits rewards can bring.

    Here is my advice to prevent bad credit history from credit card debt:

    Create your own credit limit.
    Set yourself a limit based on what you can comfortably afford to repay. It’s important to realise that you will pay at some point for the credit you use. Make sure at worst case scenario you can afford to repay it. You will then have confidence in your spending without the temptation to overspend.

    Don’t exceed the credit limit.
    This will just mean you incur hefty charges.

    Pay off the balance each month.
    Ideally, pay off the entire card balance within the interest free period. If you don’t, you will be charged interest right back to the date you purchased each item. You not only lose the interest-free period on those past purchases, but until you pay off the balance there will be no interest free period on anything you spend in the future.

    Or, choose a low interest card, but still pay more than the minimum repayment amount each month.
    If you have debt which carries over on your card month to month you should look at a card that has a lower interest rate. It may not offer an interest free period, or hefty rewards points, but the lower interest rate should mean the carried over debt is more manageable for you, and will prevent possible bad credit history.

    Avoid cash advances.
    Interest usually applies immediately on any cash advances from credit cards – whether the withdrawal is within the interest free period or not.

    For help with repairing bad credit history, or more information on your credit rating, visit our website www.mycra.com.au or call MyCRA Credit Rating Repairs tollfree on 1300 667 218.

    Image: worradmu / FreeDigitalPhotos.net