April is Financial Literacy Month. It’s time to step up and make sure you know your personal finance basics. If you have kids, whether first graders or teenagers, it’s also a great time to help educate them about healthy money habits.
This month was originally created by The Jump$tart Coalition for Personal Financial Literacy, and has since officially designated in a resolution by the United States Senate and by presidential proclamation.
The month is celebrated by a host of government agencies and private companies with a stake in helping us get smart, money-wise.
You can further your personal finance know-how by reading my weekly roundup of favorite blog posts!
1. Dinks Finance lists how we can think like a bank in order to make sure that we always have money in the bank.
2. How does a $500 annual fee sound? Ask Mr.
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As credit card companies compete heavily to solicit new customers by offering lower interest rates they have to find creative ways to recuperate some of the profits that they lose due to these lower interest charges. There are a plethora of different types of credit card fees that cardholders are subject to.
The following paragraphs outline five of the more common credit card fees which are likely to be encountered.
Late Payment Fees
Late payment penalties account for millions of dollars in charges, and no credit card is immune to them. These fees usually range from $15-$40 per billing cycle and are incurred every time a payment is missed or less than the minimum amount due is paid. These fees can easily be avoided by scheduling automated online bill payments or by contacting the card issuer with at least a one-week notice to arrange a payment extension.
Cash Advance Fees
Some credit cards allow the cardholder to withdraw a cash advance for a fee of 1 to 3% of the total cash value.
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Halifax has announced that it will be linking credit card rates to the base rate. But with APRs already high is this fair, how does it work, will others copy it and what makes up the interest rates on your card?
What is Halifax doing?
From August, existing Halifax customers will have their credit card APR based on the average interest rate applied to their balances between January and March this year.
This will be called a single personal rate and will be the same for purchases and cash advances.
Then in November the rate will start tracking the base rate, currently 0.5%, and their credit card interest rate will rise as the Bank of England lifts the cost of borrowing.
With base rate at a record low of 0.5% the move means all credit customers will see their interest rate rise in years to come as the Bank of England moves borrowing costs back to a more normal level.
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Using a balance transfer card is a great way to save yourself some money. If you have a high interest balance on a credit card, you can transfer that balance to a card that offers 0% and avoid paying interest. This sounds like a smart way to get around paying a high interest rate and it is, but you have to know what your doing when it comes to making a balance transfer. If your not careful, you could end up not being hit with fees that make that great looking offer not so great. Here are some tips to help you get the most out of your balance transfer deal.
0% on Balance Transfers and Purchases
When its time to make a balance transfer, make sure you choose a card that has a 0% interest rate on both balance transfers and purchases. Even if you dont plan on making purchases, its better to have the 0% offer on purchases than to not. This could come in handy in the event you have unplanned expenses occur.
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With homeowners being burdened with some of the highest mortgage interest rates ever seen, and with many of them having to cope with monthly housing expenses that exceed their income capabilities, it is not surprising that Australians are trending towards conservative credit card spending. In particular, 35% of the citizens of Western Australia have a savings account with a zero balance and are currently paying mortgage payments that are less than ideal for their income.
The high mortgage rates are not the only contributing factor, as the cost of food and energy has also increased, causing many Australians to reconsider their personal finances. As citizens begin to realize the advantages of frugal living, safe investing, and minimising debt, the economy is gradually improving.
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