Will the interest rate rise affect your credit card repayments? - The RBA has decided on a further interest rate hike this month.
|
|
Business Related Topics...
Entertainment, Recreation & Sports Related Topics...
Health & Fitness Related Topics...
Home & Family Related Topics...
You are here: DIME Home > Finance > Will the interest rate rise affect your credit card repayments?
The RBA has decided on a further interest rate hike this month.
Author: Sam Gooch
Date: Dec 3, 2009 - 11:55:06 AM
Printer friendly page
The RBA has decided on a further interest rate hike this month.
Australians' credit cards balances could be set to change as a result of a recent Reserve Bank of Australia decision.
The Monetary Policy Committee met this week and decided to increase the official interest rate by 25 basis points, taking it to 3.75 per cent.
For the third consecutive month, the RBA has decided to raise the base rate from 50-year historic lows that were implemented as the global financial crisis struck.
In a statement issued by governor of monetary policy Glenn Stevens, the reason cited was that the country's economy has resumed growth.
Credit, including that for housing, is expanding at a "solid rate", he said, going on to add that property prices have also risen "significantly".
Furthermore, there has been an improvement in labour market conditions, which is expected to result in a lower unemployment peak than previously forecast.
Similarly, inflation has eased from its high point last year, Mr Stevens explained - and it is anticipated that it will be maintained at a moderate level in the near-term.
"In Australia, the downturn was relatively mild and measures of confidence and business conditions suggest that the economy is in a gradual recovery," Mr Stevens said.
When it comes to spending on credit cards this Christmas, shoppers may want to take the interest rate into account.
A recent article from news.com.au drew from the opinion of several experts, including Credit Union Australia chief executive Chris Whitehead.
While it may be advisable to aim for a product with 0% interest on purchases included in their credit card terms, others may benefit from simply reducing their limit to ensure that they do not over spend.
Mr Whitehead warned against being complacent since economic forecasts suggest next year, the country's finances will improve.
"If you know you are susceptible to excess credit card spending, lowering the limit on your card is a smart option," he commented.
He went on to advise that people make sure the end of their interest-free period does not coincide with increased base rates and home repayments.
View all articles by Sam Gooch
College Account or Retirement Account Which Money To Spend?Jun 27, 2011 - 6:08:52 PM It can be very hard at times to figure out which money to use for paying your student's college bills. Some use their retirement balances which get favorable tax treatment, while other people use their special college account funds.... [Read the full story] |
How Do Credit Card Companies Make Their Money?May 26, 2011 - 8:26:22 AM We've all received offers, often quite persistent, to sign up for a new credit card. Credit cards themselves are great, because you can get the things you need even without cash readily available. However, don't you ever wonder how many credit card companies are out there? Because of the growing market for credit card users, it seems that every day, you get a solicitation letter for a new credit card company. The large playing field results in a lot of competition for credit card companies.... [Read the full story] |
3 Quick Ways To Save MoneyMay 23, 2011 - 3:03:57 PM There are hundreds of easy ways to begin cutting your expenses and saving more money each month. Some are as simple as cutting down on impulsive shopping sprees and entertainment, while others involve a little creativity. If clipping coupons is the only thing that comes to mind when you think about ways to save, read on!... [Read the full story] |
Mortgage Assistance In Canada - The Right HelpMay 3, 2011 - 10:01:27 PM Most people take out mortgages to purchase a home. These mortgages are generally paid on a monthly basis. But, for some people getting the right mortgage plan may be difficult due to lack of proper information and for some due to lack for credit history. The government provides mortgage assistance in Canada so that the citizens can overcome the difficulty in taking out a mortgage.... [Read the full story] |
| Search for articles: |
|
|
 Putting Up a Small Commercial Printing Business |
| So You Might Be Unemployed And Desire To Become A San Francisco Real Estate Investor Now |
| Meditation and Mindfulness: Dealing With Emotion |
| CPA Websites: Five Essential Ideas for Composing Convincing Articles |
| Set Goals In Order to Come Up With Your Action Plan |
| Is the Air in Your Home Safe to Breathe? |
| Coarse Fishing Tackle Review: The JW Young 13ft Trotter Rod |
| Section 1031 Exchanges For San Diego Real Estate Investors |
| Phoenix Real Estate Investing For Highest Possible Earnings |
| Legendary are the Volk Racing TE37 Wheels |
| Developing the Next Generation Wall Station (ChaseDesk™) for Healthcare - A Case Study |
| What are step down transformers? |
| Introducing Sharehype, the Revolutionary Tool for Online Marketers |
| Rewards To Shopping For Austin Real Estate On The Web |
| Hydroponics for Beginners |
Would you like submit your articles and have them approved on a priority status? Find out more about how you can become a Priority author for pennies a day! Click here.
|
| Dime-co.com Home |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About
Featured Authors
Subscribe to our RSS feed for immediate alerts