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  • Why You Need To Consider Your Options When It Comes To Financial Advisers

    Posted on May 28th, 2021 admin No comments

    A financial adviser can assist you with making financial decisions and planning for your future. Advice from a financial adviser may include advising on budgeting, investing, super, retirement planning, estate planning, insurance and taxation.

    Finding and choosing a financial adviser to suit you is made simpler by keeping these essential tips in mind.

    Decide What You Want From Financial Advice

    It’s crucial to know precisely what you’re looking to get out of a financial advisor if you want financial advice. Depending on your stage of life, how much money you have available and what you’re trying to achieve, your needs must be accommodated appropriately to ensure that you’re receiving the right kind of advice. Think carefully about what you are aiming to get out financial advice.

    Choose The Right Financial Advice For You

    A financial adviser can give two types of advice. Financial advisers can provide general financial advice that doesn’t consider personal situations or goals or how you may be affected personally. Essentially, it’s not advice that may take into account your best interests.

    However, personal advice must be based on a careful review of your financial situation and goals and align with your best interests. It can include:

    • Simple, single-issue advice – Assistance with one financial issue (e.g. how much should you contribute to your super)
    • Comprehensive financial advice – Assistance in developing a financial plan to reach your financial goals
    • Ongoing advice – Regular monitoring and review of your financial plan and affairs

    Find A Financial Adviser

    Once you have a clear financial goal in mind, it’s time to look into finding someone who can help you achieve it. You can find a licensed financial adviser through:

    • A financial advice professional association
    • Your super fund
    • Your lender or financial institution
    • Recommendations from people you know
    • Speaking with us.

    A good adviser will get to know you, keep you informed, and help you achieve your goals. They’ll also discuss how much risk you’re comfortable with. Going on this journey with your financial adviser can assist you in setting up your financial future comfortably. Begin a conversation with us to see if we can assist you on this journey.

  • Buy Now Pay Later – Is This Service Right For You?

    Posted on May 20th, 2021 admin No comments

    If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

    Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

    Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

    Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts.

    Before you sign up, keep in mind:

    • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
    • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
    • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
    • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
    • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
    • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

    If you are someone who could make use of BNPL services, you may wish to:

    • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later.
    • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
    • Always budget for bills, loan payments and BNPL payments, and
    • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

    If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.

  • How Does A No Interest Loan Work?

    Posted on April 22nd, 2021 admin No comments

    Sometimes there are a few unexpected expenses that can impact on our financial situations, and make things just a little more difficult to deal with. The refrigerator breaking down the same week that the car registration is due could be too much of a financial burden for many individuals. With many credit-providing schemes and dubious loans advertised to the public, there is a simpler way to solve your financial issue if you are applicable.

    The No Interest Loan Scheme is provided by the Australian government for individuals and families to have access to safe, affordable credit.

    No interest loans are designed to assist people in getting back on a more stable footing financially, allowing them to borrow up to $1,500 to pay for essentials. The term for this loan is between 12 and 18 months, with no credit checks, interest, fees or charges. Repayments for no interest loans are affordable as you are only paying for what is borrowed.

    To receive a no interest loan, you must:

    • Have a Health Care Card, a Pensioner Concession Card or an income less than $45,000
    • Have lived at your current address for more than 3 months
    • Show that you can repay the loan.

    There are only a couple of steps that need to be completed to apply for a no interest loan under the scheme. A meeting must be arranged with a NILS provider through a telephone or website enquiry, in which you will be interviewed and helped through the application process. Then they will assess your eligibility and present you with an outcome. Loan assessments generally take between 45 and 90 minute, with the loans being approved within 2 days. If all paperwork is provided on the day, it can sometimes be same-day approval.

    No interest loans can only be used for essentials. These can include:

    • Household items, like a fridge, washing machine, computer or furniture
    • Educational materials e.g. tablet or textbooks
    • Some medical and dental services
    • Car repairs and tyres

     

  • Here’s how to start investing

    Posted on March 19th, 2021 admin No comments

    There are a lot of options when it comes to investing, but often people are daunted by the prospect. A lack of accessible information, misconceptions about investment opportunities and fear of losing money are often reasons people opt out of investing.

    Investing can be as easy as a savings account separate from the account that is used for spending, in which a percentage of monthly income can go into. If there are adequate funds, consider investing in real estate for passive income. With real estate values growing over time, on top of earning rental income during ownership, there will be an opportunity to sell later on at a higher price.

    Diversifying investment portfolios can seem overwhelming, but all that it takes is putting money into multiple investment avenues. This can be in shares or managed funds with a financial advisor, investments with different rates of return, or in startups or cryptocurrency.

    These avenues of investment can still be a lot to take in for individuals, so financial advisors are always a good option for those looking for a little more of an expert opinion on the issue.

    https://www.entrepreneur.com/article/341491

  • Signs of unauthorised and mistaken transactions

    Posted on February 25th, 2021 admin No comments

    When checking through your transactions, you might come across a transaction that doesn’t look right. If this is the case, you should get into contact with your bank as soon as possible. 

    An unauthorised transaction: Money transferred from your account without your permission

    A mistaken transaction: Paying the wrong person by using the wrong details

    Here are the signs to look out for to identify unauthorised or mistaken transactions:

    • Persons or companies whose names you do not know
    • Cash withdrawal from a place you have never been 
    • Transaction date you don’t recognise
    • Payment that has doubled up

    But keep in mind:

    • Transactions can take days to show up – they are not always immediate
    • Name of a shop or restaurant might not match the bank statement (they may have a different trading name which you can verify online)
  • Repairing errors in your credit score

    Posted on February 18th, 2021 admin No comments

    Your credit score can affect loans and credit you apply for. You are able to have errors on your credit report fixed for free. 

    The following are typical errors in credit reports, that you are able to get fixed for free.

    Errors by the credit reporting agency – there may be instances where the agency that reports your information has done so incorrectly. This can lead to errors about:

    • Your name, date of birth or address
    • Debt listed twice
    • Amount of debt

    This type of error can be fixed by contacting the agency directly.

    Errors by the credit providers – there may be instances where the credit provider incorrectly reports information. This can lead to errors about:

    • How long your credit is overdue
    • Whether you were notified about an unpaid debt
    • If your debt was defaulted as overdue when it is in dispute
    • Changes in your payment plan that were not appropriately represented 
    • Accounts that were created as a result of credit fraud

    These types of errors can be corrected by contacting the credit providers. If they agree that there has been a mistake, then the agency will adjust the details. If there is disagreement, then contact the Australian Financial Complaints Authority (AFCA) to file a complaint and receive a resolution. 

  • Stay on top of your credit cards

    Posted on January 28th, 2021 admin No comments

    The following are some tips which will make it easier for you to stay on top of your credit card payments so that you can worry less and save more. 

    Pay on time

    Check when your credit card due date is and plan your spending so that you can always pay before the date. By paying before the due date, you will avoid paying interest or late payment fees but also keep your credit card score healthy. 

    When you have so much going on in life, it can be difficult to remember a date. To ensure that you’re always paying on the due date set a monthly reminder on your phone. 

    Pay as much as you can each month

    Pay the most amount of money you can for each repayment so that you pay the debt faster and save money on interest and late fees – this means paying more than the minimum amount. If you are struggling to pay the minimum amount, contact your bank or credit provider to see if you can renegotiate. You should also consider talking to a financial counsellor. 

    Taking action earlier rather than later will save you money and prevent your debt from growing. 

    Cut back on your credit cards

    Multiple credit cards can get overwhelming and result in you paying a lot more than you actually need to. Aim to reduce the number of cards you have one at a time. You might choose to prioritise by:

    • Smallest debt: Pay off the card with the least debt first and then move onto the next smallest debt.
    • Highest interest rate: Pay off the card that charges the highest interest and then the one after. 

    Regardless of which option you choose, continue to pay minimum amounts for all cards and only continue using one card. Once you pay off each card, remember to cancel it!

    Reduce your credit card limit

    The easiest way to avoid the temptation of overspending is by placing a limit on your credit card. You can do this by contacting the branch remotely or visiting in person and it takes at most, 2 business days. 

    Remember that you don’t have to settle on a bad credit card deal. If you realise that your bank is being unfair, or charging too much compared to other banks, make sure you get in touch with them to try and get the best deal for you.

  • Things you should do every time you get paid

    Posted on January 21st, 2021 admin No comments

    It can be tempting to treat yourself on payday, but in the long run, planning your spending will be more rewarding. Creating a payday routine will help you pay your bills on time and save more money to put aside. 

    The very first step needs to be completed the night before payday. Transfer any funds you have leftover from the previous payday to your savings account. This will allow you to spend less money you consider ‘extra’ and save it for your long-term goals.

    The second thing you need to do is pay as many bills as possible, rather than wait till the ‘due date’. As it is, once money comes into the account, a lot of it is earmarked for bills and payments that need to be made, so rather than holding off on them, you should pay them immediately. This will also give you a clear indication of how much money you have.

    Finally, creating a to-do list on the day of your payday is an effective method of viewing or planning your expenses. This will give a clear indication of small and large expenses that need to be paid before your next payday. They will also help identify unnecessary expenses or when extra money is being spent when it shouldn’t be. 

    These are simple techniques that anyone can apply to get ahead of over-spending on payday. 

  • Pros and cons of reverse mortgages

    Posted on December 10th, 2020 admin No comments

    Reverse mortgages allow you to use the equity in your home as security to borrow money. The following are pros and cons of acquiring a reverse mortgage. 

    Pros

    • You will be the owner of your home and can continue to live in it
    • Some of the money you gain from it could be used to supplement retirement (especially relevant if your super isn’t covering all expenses 
    • You could use the lump sum payment for renovations if your home is in a bad condition
    • You could put the money aside for emergencies that can arise 
    • You won’t feel stressed about your living situation

    Cons

    • Over time, your debt will grow while your equity decreases
    • Interest and fees will accumulate and contribute significantly to your loan balance
    • The interest rate that is charged on a reverse mortgage will be higher than on a standard home loan
    • Reverse mortgages could impact whether you receive Age Pension
    • Reverse mortgages could inhibit your ability to afford aged care
    • If you are the sole owner of your home, then if you move or pass away, the person staying with you may not be able to stay
    • If you plan to invest the money from your reverse mortgage, then your home is at risk (not just the portion being invested) 

    Planning for unforeseeable circumstances is especially important during retirement. Therefore before you choose to opt for a reverse mortgage, make sure you consider your options. 

  • The risks involved in debt consolidation

    Posted on November 25th, 2020 admin No comments

    Debt consolidation is a form of refinancing which involves taking one larger loan out to pay off multiple small ones. Although this might make managing repayments easier, you may end up paying more money interest rate or fees. 

    There will be companies that make offers which are too good to be true. If you feel that an offer is unrealistic and the company is promising that they can get you out of debt no matter what your situation is, you should reevaluate using their services. Don’t trust companies that: 

    • Are not licensed
    • Ask you to sign blank documents
    • Refuse to discuss repayments
    • Rush the translation process
    • Won’t put all loan costs and interest rates in writing before you sign
    • Arrange a business loan when you only need a consumer loan

    The goal behind the consolidation is to manage your payments, not create more fees and interest for you. Therefore, before signing onto an agreement, check how consolidation compares with your current fees and interest rates altogether. Also, take into account expenses and penalties associated with your existing loans and whether you will have to pay more money for paying off your loan early. If the expenses work out to be more, it might not be worth going through this entire process. 

    Debt consolidation isn’t the only option if you’re struggling with repayments. Other options may be available which are more suited to you. You should discuss with your mortgage provider, credit provider or financial advisors to determine if there is anything that can be done.