Fire Your Bank! Money Tip without the Boring Stuff

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Not happy with your bank, credit union or building society, but overwhelmed by the thought of canceling and re-activating all those direct debits?  The Government introduced new rules from November 2008 which should make it easier (in theory anyway).  Following is a link to http://www.fido.gov.au/fido/fido.nsf/byheadline/Switching%20bank%20accounts?opendocument#2 which provides a step by step process.

For people who love detail, included in the information is a  booklet published by APCA (Australian Payments Clearing Association) which includes lots of good information.  There is also a copy of the  Code of Conduct that the financial institutions need to adhere to.   Just go to Part D.  It states they have to provide you with the information within five working days.  Make sure you keep them on their toes. Read the story »

5 simple ways to avoid overspending at the shops

Beat the Retailers at their own Game

We are all prone to overspending. Ladies, just look at all the clothes you have purchased over the years, and half of them you probably don’t wear. If I calculated how much I have spent just on clothes since I started work at 15 years of age, I would no doubt be horrified (best to stick my head in the sand!).

The men are not going to get away with it either. From my experience they tend to purchase big ticket items, such as big screen TVs, power tools, and stereos. Read the story »

Margin Lending - the good, bad and the ugly.

Margin loans are simply an investment loan that is secured against the assets you are purchasing, such as shares and managed funds.   You don’t need to sign over your house and that is why so many people like them.    However, investors can get into trouble if their investment falls below a certain level, known as the loan to valuation ratio (LVR).

You may have heard of margin calls.   When these happen, investors are in a bind.  They can either sell down their investment to restore the LVR,  in other words forced to crystalize losses, or have to find the funds to top it up.  What a tough decision to make in this current economic climate.  You could be buying bargains, or perhaps throwing good money after bad.    Some institutions also allow you to assign other assets.  Read the story »