Tag Archives: credit

Woolworths Still Offering $50 Shopping Card

The Woolworths Everyday Money credit card is like a lot of rewards credit cards in a number of ways.

The rewards credit cards seek to help out their customers by rewarding them for their spending. The cards are differentiated by what types of rewards are offered and by how much it will cost for these rewards to kick in. Typically, rewards credit cards are a nice way to offset the costs of doing business in today’s corporate world.

The Woolworths Everyday Money Credit Card has a number of features, most of which are good when compared to other cards. The card features no annual fee for the first year, which means customers will save on somewhere close to $50 that they otherwise would have had to pay during that opening period.

The card offers what they are terming a competitive type of interest rate. This rate promise goes along with the advertised offer of no interest for the first 55 days in which you have the cards. Together, this means that the card has one of the lowest APR numbers in the entire industry.

One of the most unheralded aspects of this card is the security system that comes along with it. There is chip technology, meaning that you are safer in the unfortunate case that your card is stolen or you happen to lose it. This can set your mind at ease and it can potentially save you lots of money in case of an emergency.

The rewards are obviously the best thing about this card, and you get some right off the bat. They offer a $50 shopping card when you first get the credit card if you spend on your card before 30 April 2009. You can also earn three rewards points for every dollar that you spend, and you will be given a shopping card every four months if you use the card.

One of the ways in which the Woolworths Everyday Money card compares most favorably is with the interest rate. While many rewards cards are charging north of 20% APR on purchases, this card keeps it well below that threshold.

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Emergency Fund: Should I Have One?

There was a point in my life where I thought that having an emergency fund was like taking away my money, but soon I realised it is the other way round. Having an emergency fund is more beneficial than you can imagine.

For example, if an emergency happened that cost you around $1000 – what would you do? No big problem. What if you’re like thousands of other Aussies without car insurance when your car breaks down badly (ie. your timing belt goes!) — what is your financial response? Do you have enough in your everyday money to absorb the cost? Consider, what happened if you needed to suddenly travel interstate or overseas? What if you loose your job unexpectedly? There are plenty of unique scenarios which happen at the drop of a hat.

Be wise with your money and don’t assume that you will cruise through difficulties. For some who are clever enough to have an emergency fund, they can easily pay off the emergency and perhaps still have some left over. But what about those who don’t have an emergency fund? Therefore, we can divide it into two categories, one is those who pay interest and another is those who earn interest.

Paying Interest

This category applies to those who depend heavily on credit cards. In this case, you use the credit card to pay for the $100 emergency. Your credit card is the fastest way to solve any emergency situation that involves money. However, credit cards can have negative effects on your long-term financial plan especially if you don’t have the best credit card suited to your financial abilities. Lets say you manage to pay the $1000 emergency on your card, but you will have to bear the burden of paying back to the bank not only of the $1000, but also the interest. The percentage rate ranges between 10 – 20% per year, so can you imagine how much the interest adds up if you don’t pay it back within a few months. Look for a balance transfer credit card with a low ongoing interest rate if you’re needing to get a better deal than what you’re currently getting.

Therefore, while you are still paying for the first emergency, you don’t manage to save for the second emergency. Then when the second emergency happens, you will have to borrow again, and that adds up to your burden. Then the cycle is repeated when you are still trying to pay for first and second emergency; you don’t have any credit to absorb the third emergency and your debt is going up to a point that I am sure you don’t want to think about! Okay – so three bad things happening in quick succession…unlikely I know, but be prepared.

Earning Interest

This category applies to those who are clever enough to understand the importance of having an emergency fund. They put aside a small amount of money every month, lets say $100. Then as the time goes by and first emergency happens, you don’t worry much because it can easily pay the $1000 emergency, and perhaps some of them might have that balance in their fund, so they can continue to save for the second emergency while at the same time, earning the interest from the bank. This is a prudent move that everyone should make. Now, when the second emergency happens, again they don’t have to fret. They easily settled the second emergency and this time, as usual, they might have even more money remaining in the fund – and they keep on saving and earning interest. Look for savings accounts with as high interest as possible which can accessed at any time.

So, in conclusion, I shall add that for just a small amount of around $100 every month, you are on your way out of any financial burden and heading towards a peaceful and more organised life.

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Top 5 Saving Tips For A Longer Holiday

You work hard all year to get your big holiday vacation and then it feels like it’s over before its even started. Holidays move so quickly that it is easy to wish for a longer break. You may feel that long vacations are for the mega rich and gap year students but with careful planning, longer holidays can be acheived. There are 5 key tips for learning how to save for a longer holiday.

  1. Set Goals – Firstly and most importantly, set your goal of wanting a long terms holiday and make a deadline for when you need to pay for the holiday. Having specific figures and dates to aim for will help you reach that target. The longer the run up you give yourself to save, the better and less stressed you’ll be when you book the holiday because you’ll have all the money (or most of it available right there and then).
  2. Separate Savings Account – Having a high interest savings account will keep your saving cash separate and earn whilst it is just sitting there. Having it apart from your normal account will reduce the temptation to spend it. Many people like to pay directly into their savings account from their pay check or they set up a direct debit to transfer from their account as soon as they are paid. This helps because you don’t get to see the money and it is in your savings account before you even have it.
  3. Rewards Credit Cards – Consider one of the rewards credit cards or frequent flyer credit cards on the market which reward your spending with travel perks such as Qantas points, free travel insurance or even a free flight. Its worth checking out the options. Don’t be put off – you don’t need to apply for a gold or platinum card to get great travel perks.
  4. Make Small Daily Savings – There are also many daily savings you can make to your expenditure. If you regularly get a coffee on the way to work why not keep a jar of coffee at work and have one there. This would offer great savings per day. Similarly, if you take bus rides for short journeys perhaps you could walk and save the case, as well as getting great exercise.
  5. Shop Around – Lastly, it is always important to book early and research all the prices. With internet price comparison sites such WebJet, it is easier to find the best price available and these sites should always be checked before buying.

With a bit of forward planning and following these 5 simple tips, it is possible to make saving to earn a longer holiday.

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