Salary sacrifice – an easy and clever way to boost your super

Boost your super so you have a nice nest egg at retirement

Is it the odd name that leads people to think that it is all a bit too hard? Or is it maybe a perception that you need to be a high income earner to take advantage of it? Whatever the reason, the truth is that salary sacrificing is actually quite a simple, accessible and effective way for many working Australians to save on tax while boosting their super nest egg.

Read more…

Understanding the way Interest works on Credit Cards

Interest free days vs No free days

Credit Cards can be a useful tool as an emergency backup, but to use them to your full advantage it is vital to have a good understanding of how credit card interest charges.

Cards usually come with either “up to x days” interest free on purchases, or a no interest free period.  So what’s the difference?

To use our cards as an example, we have an “up to 55 days interest free” card (Visa Classic) and a Low Rate Visa card with no interest free days on purchases. The Visa Classic allows you to potentially have 55 days of no interest charged on a purchase if you pay the full balance of all purchases owing every month.  But, be aware. It doesn’t mean you get 55 days interest-free from the moment you buy something. The “55 days” refers to from the start of your statement cycle to your statement’s due date. So if you buy something on the day your statement cycle starts you will have 55 days interest free until your next statement bill is due (as long as you pay it in full). If you buy something 10 days after the billing cycle you will get 45 days interest free, and so on. So you could get between one day interest free, and a maximum of 55 days interest free.

The main advantage with this type of card is that if you pay your balance owing in full every month, you are getting an interest free revolving credit fund. But if you don’t pay your bill in full each month, interest charges will apply on items from the date of purchase.

Our Low Rate Visa on the other hand, calculates interest from the day you make a purchase until you pay it off, however the interest rate is considerably lower than the interest free period card. This type of card is a big advantage if you are not able to pay your balance owing in full every month.

All credit card statements include a repayment table which outlines the interest and time frames anticipated when only paying the minimum repayment on your account.

This is a great indicator of the true cost of your card, so keep this in mind when making large purchases that you can’t repay in full at the end of the statement period.

Cash advances (withdrawing cash from your credit card) aren’t considered a purchase so no interest-free days apply, no matter what type of credit card you have.

Our website gives all the great features and benefits of our Visa Classic and Low Rate Visa card.

Speak to our lending officers on 1300 65 65 81 or enquire now to get the card that best suits your needs today.

Paper or Plastic?

Personal Loans v’s Credit Cards

Personal loans and credits card, at a basic level, offer the same thing: the ability to access borrowed funds. The critical difference is in how these funds are accessed and repaid, which means while personal loans and credit ultimately do the same thing it’s still worth seeing which best suits your situation.

Read more…

The importance of having adequate insurance

Do you have adequate insurance?

No one wants to consider the prospect that their home or personal possessions could suddenly be destroyed, damaged or even stolen. But imagine the heartbreak of realising you weren’t covered for the cost of rebuilding or replacing treasured items should tragedy strike.

Read more…

Gearing for success – Not all debt is bad

Many of us have borrowed at one time or another for our larger purchases, like a holiday or a car. However, when done sensibly and with careful planning there are cases when borrowing to invest can be even more worthwhile.

Gearing is a sophisticated investment technique and is not suitable for everyone. We recommend you speak with a Bridges financial planner. Here’s a quick run down of positive and negative gearing. 

Read more…

Do you need to be retired to access your super?

Apart from perhaps the family home, super is the biggest asset that most people will ever have. Unlike other assets and investments, however, the principle of super is that it should be preserved for retirement and not frittered away. While this generally makes good sense, life is not always so straightforward and there are times of need where you or your family could benefit greatly from gaining access to your super. So how flexible is the system and what are the rules around early access? Here’s a quick guide to the possibilities.

Read more…