Sector News (Page 11)

7 March 2016

Young Women Anxious About Their Finances


Separate household surveys by research firm Digital Finance Analytics found the proportion of women taking small high-interest loans from called “pay day” lenders grew between 2005 and 2015. The average size of those loans taken by women also rose over that period according to the firm’s analysis. The use of these loans can be a sign that the borrower is financially stressed.

NAB Group executive Michaela Healey said the financial literacy of young women needed to improve.

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2 March 2016

‘Car yard’ insurance faces ASIC crackdown


Life insurance policies in Australia are typically sold through financial advisers, obtained through group cover provided by superannuation funds, or direct through online websites. Some of the biggest life insurers in the country are AMP, TAL, CommInsure, MLC and AIA.

The average life policy might cost $987 when bought through traditional means, while a personal-use car yard life insurance product might cost $1492, ASIC found.

Dodgy insurance products and practices are not isolated to Australia.

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1 March 2016

Family made homeless from a credit card debt


Aaron Szepesvary and Buket Ozdil were forcibly evicted from their suburban Melbourne home on Tuesday, the lock drilled, the door smashed open, over an unpaid $20,000 credit card debt.

Plus at least $132,000 in legal costs. The total debt is now almost $300,000.

When the matter started the pair could have paid off the $20,000 debt easily. They did not, and now have lost everything they own

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29 February 2016

The Under 30’s and Credit Card Debt


Bankers are quietly talking about an uplift in credit card applications from young people, specifically to establish a credit rating. Hello temptation.

Your VedaScore, issued by the biggest of three credit ratings agencies, tells the story of your credit-worthiness. The average is 771 (out of 1200), which falls into the “very good” range, but Millennials score the lowest of any generation at 682: “good” but by no means great.

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26 February 2016

Gambling cards lure punters, find way around banks


Australians are using their online gambling accounts like bank accounts – and it’s good news for bookmakers.

New data has revealed punters are pouring money into online gambling accounts via new re-loadable debit cards – and much of it is flowing back to bookmakers.

eMerchants, the company setting up the prepaid cards for bookmakers, says the amount of cash being loaded onto the cards had risen from $15 million in the first half of last financial year to $90 million in the first half of this year.

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24 February 2016

‘Inheritance impatience’ one driver of elder financial abuse


Elder abuse is any behaviour or action within a relationship of trust that harms an older person. It includes financial, psychological, physical, sexual, social abuse and neglect.

Elder financial abuse in particular is the illegal or improper use of an older person’s property, finances and other assets without their informed consent or where consent is obtained it is by fraud, manipulation or duress.

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23 February 2016

How many Australians are living in poverty?


Dr Azpitarte told Fact Check that these sources are “both good and reliable sources”.

And he said that all estimates in the three reports in this fact check are of a similar magnitude, “which suggests that the poverty estimate is not sensitive to the definition of child poverty”.

Associate Professor Redmond told Fact Check that different surveys make different assumptions, and therefore produce slightly different results.

But he said all three reports are “all totally credible. There’s so many ways you could measure poverty”.

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22 February 2016

The biggest money mistakes people make


Men are most likely to say their biggest financial mistake was getting divorced or separated. The No 1 mistake nominated by women was having let their partner control the finances, with relationship breakdown a distant second.

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19 February 2016

Big 4 Banks Accused of Setting ‘Debt Traps’ With Credit Cards


Jose Lacoto managed to run up a $30,000 credit card debt.

But he’s still puzzled why his bank gave him the card, why they did not check his income status – only a simple check, he says, would have revealed he had no chance of repaying the debt.

The big four banks have been accused of using predatory advertising tactics to push “debt trap” zero per cent balance transfer cards on consumers right when they are at their most vulnerable – just after Christmas.

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