Are you the 99%, 53%, 1% or who cares what %?
Filed under: Banks, Cost of living, Economics, General Budgeting, Interest Rates, Credit Cards & Mortgages in NZ
The “Occupy Wall St” protest has hit New Zealand this weekend – “occupying” Auckland, Wellington, Christchurch and Dunedin. I have tried to get my head around this – and I have to say I am failing miserably. When I started seeing “We are the 99%” posts coming up on my Facebook feed – I took a look at that and understood what they were saying.
We are the 99 percent. We are getting kicked out of our homes. We are forced to choose between groceries and rent. We are denied quality medical care. We are suffering from environmental pollution. We are working long hours for little pay and no rights, if we’re working at all. We are getting nothing while the other 1 percent is getting everything. We are the 99 percent.
I get anger that banks and financial institutions had screwed up, lost an awful lot of money, got bail outs, and yet still managed to find many millions of dollars to pay huge bonuses to the people who screwed it all up, while people lost homes and jobs.
Well who wouldn’t be pissed at that? I find it astonishing that governments are bailing private companies out, but there’s not a penny for us if we hit the skids. No one bailed us out when IBM got rid of hubby. We had to manage that ourselves – as does everyone. We have friends who have lost everything – no one bailed them out.
But I am also somewhat confused about why the blame is only being shoved on the corporates – and not those of us (ie just about all of us) who have spent the past decade or 2 spending vast sums of money we don’t have (ie debt) on cars, various iGadgets,clothes, shoes, posh food, holidays and houses. We have to take some responsibility here. Blaming the big bad corporation doesn’t change the fact that as a whole the western world gorged itself on debt and consumerism. No one forced us to buy iPhones. (I wonder how many people occupying Wall St still have smartphones, and are updating Facebook with their adventures via the very items the corporations sold us, and we willingly bought with money that the banks invented for us to spend, increasing the debt balloon that they now say is the source of all ill in the world).
But what has got me really confused was this has morphed into a strange anti-government, anti-money,anti-whatever-we-can-think-of-to-be-peeved-about-as-long-as-we-can-blame-the-anyone-who-is-richer-than-us sort of movement. Everyone is supposed to have a voice – no one is considered to be worth more than anyone else. This to me is an alien concept – in $ terms of course people are worth different amount – please never let a brain surgeon work on me if you only pay them the same as the cleaner. In human terms – I will always value kindness and decency in someone more than I will value someone being an arse.
I saw this video of the “assembly” in Atlanta – I gotta say – if that’s the alternative to the current political system we have – no thanks.
I am way too independent to sit there and parrot back what I am told to say – what are we? 5? Repeat after me “You are all individuals”…
So – are you the 99%? Probably not.
Global Rich List puts your income into world wide terms. And you may be surprised at how little income it actually takes to get you into the top 1% of earners in the world. Global Rich List doesn’t work for NZ$, but just £25,000 a year or $49,000 USD gets you there. At current exchange rates that works out at $49,500 or $61,500 NZD.
The New Zealand minimum wage is $27,040 a year which (using the UK£ to work it out – £13,600) puts you in the top 10.5% richest people in the world. And yet on that how many people still have mobile phones and internet access?
The median wage in New Zealand is $49,000. That means that 50% of wage earners in New Zealand are actually among the top 1% of earners in the world.
Those of us who pay for those of you who whine about all of that… or that… or whatever.
Ok – so this made me laugh. Can’t see this lot repeating back what they are told 3 words at a time and looking gormless.
So I won’t be occupying Wellington. To be honest I am too damn busy dealing with our current financial situation, budgeting our money, saving where and I can and spending what I have spare on stuff produced by people who also earn money. Some of them earn less than me, some of them earn more than me. Some of them are worth that much, some of them aren’t. I make that decision myself, and decide for myself where I will spend money, how much to spend, and whether to take on debt. If I take on debt – I take full responsibility for that decision, and for any mistakes I may make.
And I have absolutely no idea which % I am.
I am not a number – I am a free man .
Why are Visa and Mastercard forcing you to have contactless credit cards?
Filed under: Banks, Interest Rates, Credit Cards & Mortgages in NZ
ASB contactless credit cards are a faster and simpler way to pay for your purchases. Now you can fly through checkouts at participating stores, paying by just tapping your card on the terminal.
This new technology sends payment data to the terminal at the checkout with just one quick tap to the terminal. Once your payment has been confirmed you’re ready to go.
Problem is – it seems that these cards are being sent out automatically to people. And many of those people are phoning the banks and trying to get an old style card back because they don’t want a contact-less credit card. We don’t want one either – the security holes in this system are big enough to drive fly an Star Destroyer through)
The problem is they are being refused. That’s right – you have NO CHOICE except to have a credit card that allows funds to be taken out of your account without you ever having to swipe it, push the chip into a machine or type in a pin or sign for it.
Given that banks and Credit Card companies has thus far failed to find a way to stop your average common or garden credit card fraud – you would think they would be loathe to invent a system that is wide open to mistakes, abuse and the emptying of your account.
And the worse thing is that if this does turn out to be watertight as a sieve – most people wont even notice because most people never look at their credit card statements. It should be noted that although I have posted up a picture from ASB and quoted their website – this is not something ASB are forcing on us (or any other bank for that matter). This is being driven by the Credit Card Companies – though I have to say that the banks probably have the power to tell the to get stuffed if they wanted to.
Time for an RFID Blocking Wallet???
New Zealand Interest Rate changes
Filed under: Banks, Economics, Interest Rates, Credit Cards & Mortgages in NZ
The reserve bank has held our base interest rate – and now it seems most of the “experts” how claimed the rate would be rising by the end of this year have changed their minds and now claim it will be march next year.
Apparently they will have to go but then some say they shouldn’t. Some say they should stay the same.
Helpful.
Interesting, I checked the ASB home loan interest rates – and they have gone down recently:
As at 01:33:46 a.m., Thursday 4 August 2011
- Housing Variable 5.75 % p.a.
- Housing Fixed (6 Month) 5.85 % p.a.
- Housing Fixed (12 Month) 6.15 % p.a.
- Housing Fixed (18 Month) 6.40 % p.a.
- Housing Fixed (24 Month) 6.65 % p.a.
- Housing Fixed (36 Month) 6.95 % p.a.
- Housing Fixed (48 Month) 7.35 % p.a.
- Housing Fixed (60 Month) 7.75 % p.a.
- ORBIT Home Loan 5.75 % p.a.
As at 12:25:54 p.m., Thursday 15 September 2011
- Housing Variable 5.75 % p.a.
- Housing Fixed (6 Month) 5.85 % p.a.
- Housing Fixed (12 Month) 5.90 % p.a.
- Housing Fixed (18 Month) 6.10 % p.a.
- Housing Fixed (24 Month) 6.30 % p.a.
- Housing Fixed (36 Month) 6.70 % p.a.
- Housing Fixed (48 Month) 7.05 % p.a.
- Housing Fixed (60 Month) 7.40 % p.a.
- ORBIT Home Loan 5.75 % p.a.
I’m still not fixing from my flexible rates.
The Mortgage Pig
Filed under: Avalon's Money Thread, General Budgeting, Interest Rates, Credit Cards & Mortgages in NZ, Property & General Investing
I was on the train today heading to the Wairarapa for the weekend, and I was mulling over our latest money saving exploits. And I was thinking about Fred’s comment and how we actually attempt to make sure that saving are just that – real savings – and that we don’t waste the money elsewhere.
Because of course Fred is quite right – it’s all very well not spending money on something – but if you then spend it on other stuff – you really haven’t saved anything at all.
That’s where the Mortgage Pig comes in. This was an idea I came across on the MoneySavingExpert forum – and seems to have been “invented” by Aliasojo.
I decided a while ago that I really wanted my mortgage paid off. It wasn’t very large to start with admittedly, but it wasn’t coming down as quickly as I would have liked.
As the mortgage was one of those background constants that just gets paid every month without thinking about it, I figured that if it was in front of us and on our minds more, we might make more of an effort to collect more money to chuck at it.
So……I got a mortgage pig.
It’s a large green pig which sits on my kitchen worktop in a very central position with a ‘speech bubble’ printed on A4 paper and stuck to the wall above it. The mortgage pig explains (in the speech bubble) who he is and why it’s a good idea to check whether you really need that bottle of wine or takeaway and if it might be better to give the cash to him instead. It also a bit to remind us why we wanted to pay off our mortgage and lists the things we want to do in the future.
Now we don’t use cash. And while we have used a physical piggy bank in the past – because we don’t use cash – it takes too long to save anything. So we have a “Virtual Mortgage Pig”. It’s not large, it’s not green and it doesn’t have a speech bubble explaining what it is. Instead, we have a category on Quicken called Mortgage Pig. When we make a saving, get a bit of extra income (such as share dividends, trade me sales), or we use our ASB points to buy stuff instead of money, we transfer the money to Mortgage Savings. Now that our personal mortgage has gone and been replaced by a business mortgage – the Mortgage Pig savings get paid to our Investment Savings Pot.
At the moment, not all our “savings” will make it to the Pig. That’s basically because the past year or so have been very hard for us financially, and to be perfectly frank – savings we make in one area are pretty much eaten up with price rises in another. Right now it feels like Standing Still financially is a battle of epic proportions – let alone trying to get ahead!
Should we have any money left at the end of the month – that too would be a Mortgage Pig saving – and get shoved into to the Investment Savings. These savings are what keep our rental business afloat. Given how much money we lost on because of our issues with Agile Property Services’ negligence and failures to manage our properties – that account is in pretty much a mess. But with some hard work, and some tough management – we are clawing back the losses he caused. It does help that the tenants we now have are paying rent like clockwork, and I am not having to pay it for them. Ill be blogging more about that later – but every time I start I just get too furious at the trouble the Property Manager caused me – and his refusal to get some balls and deal with me.
So yes – it doesn’t really matter how you do it – but you do need some way of locking in the savings. Like I said – ours is for mortgages – which is the best use of money you can make. If you haven’t got a mortgage – then it’s really up to you. I really like the idea of the Mortgage Pig. It’s a bit silly, it’s a bit fun, and you can basically run it however it suits you: from putting all spare change in – to literally deciding not to buy a takeaway and gettimg cash out to put in the pig instead. Remember there is no “one true path” and what works for me may not be good for you – but there is certainly no harm creating your own version of “The Mortgage Pig”.
Thanks Fred 
Banks are stepping up to help Christchurch
Filed under: Banks, Interest Rates, Credit Cards & Mortgages in NZ, Life in New Zealand
As soon as the government announced it’s package to help people in Christchurch, ANZ was on the TV with an advert outlining it’s 1,000,000,000 package to help affected people in the red zone.
We’ve created a $1,000,000,000 kick-start fund to provide lending to home owners living in the Government’s designated residential red zone.
A heavily discounted variable rate – currently 3.70% p.a. – will be available to eligible residents for the first year of lending – no matter where you relocate in New Zealand.
What does the fund provide?Eligible residents will get a 2.04% discount off ANZ’s variable home loan rate for the first year of lending up to a value of $500,000.
Who is eligible?Any home owner living in an area of Christchurch which has been designated as part of the Government’s designated residential red zone. What do you need to do to qualify?
- You must be eligible for and take up the Government scheme
- and deposit the net proceeds of the Government payout into an ANZ call account within two months of receiving it
- At the point of taking up the lending, you’ll need to direct credit your salary directly into an ANZ transaction account
- The loan must be drawn down by 31 December 2012.
Kiwibank have a similar package to ANZ:
If you accept the offer from the Government and wish to purchase or build a property elsewhere, we’re offering:
a 2% p.a. discount on our variable rate for a year from drawdown – this means that the rate will be 3.65% p.a.
no application fee for new home purchases
no fixed rate break costs or early repayment fee if you already have a Kiwibank home loan.You’ll need to:
contribute the Government’s net payout towards the property purchase price, and
have your salary direct credited to a Kiwibank account.The maximum loan amount is $500,000, and the loan needs to be drawn down before 31 December, 2012.
ASB have also updated there aid package, but to be honest it really is pretty weak compared to ANZ.
Westpac and BNZ haven’t released an up to date package for people in the red zone – which is a pretty poor show really. So ANZ and Kiwibank are the winners here for taking some decisive steps – good on them.
Paying off debt – still too hard for most people :(
Filed under: Banks, General Budgeting, Interest Rates, Credit Cards & Mortgages in NZ
According to a piece on the herald today, Kiwi consumer debt (that doesn’t include mortgages on property) still stands at a whopping $11.96 billion. That’s $11,960,000,000. Now the Stats NZ population clock stands at over 4.4 million, but census information says there are 895,000 people here under the age of 15. Which leaves an “adult(ish) population of 3.5million give or take. Which means on average every one over the age of 15 would be carrying a debt of $3417 each, all at high interest rates. This is debt on credit cards, store card and hire purchase.
That’s actually quite a lot really.
And according to the article, the most that people are thinking of doing to sort this out is not get further into debt. But there are very few people thinking of paying it down.
Now for the moment, we also have some consumer debt on a credit card – expenses from setting hubby up as a contractor. As you know, we swapped this to a “low” interest credit card, saving us about $250 a month in interest, and that is being paid off rapidly, and will be gone by the end of September. To be honest, I felt really unconformable having the debt there, and it just didn’t seem to be getting lower. So we took steps and have budgeted $2000 a month to pay the card off. Now most people will not have the income to do that, especially here in New Zealand. But the bottom line is – debt has to be paid off somehow.
It doesn’t have to be $2000 a month, but it does have to be more than the minimum payment, and having consumer debt means if nothing else – you have to stop buying things you cannot afford.
Its a pain – but its true.
Apparently the interest we are collectively paying on our credit cards (at an average of 18%) is $650 million in a year.Now shared amongst the same 3.5 million of us sharing the debt, that works out at a reasonable sounding $185 a year each. But when you consider that you pay that for the privilege of having the debt, and you actually don’t have anything to show for it – its a bit of a waste of money isn’t it?
Believe me – that $2000 debt repayment could be much better spent on us having some fun. Though actually because I’m completely sad – once the credit card is paid off, its going to be used to pay down some of our business mortgages. We may however be able to use 1 month of it to fund the purchase of a new laptop. In the meantime, I gain a huge amount of pleasure from denying the banks a fair chunk of interest each month.
Like what Avalon has to say?
Click Here to buy Avalon's Guide or Click Here to buy the E-Book
Would you apply for a mortgage for someone else…
Filed under: Banks, Economics, General Budgeting, Interest Rates, Credit Cards & Mortgages in NZ, Property & General Investing
and then complain when you realise that you were scammed and the mortgage broker lied to you when they told you it was to help a British couple out whose money was locked up in the UK???
Much as I would like to help people make the move to New Zealand – the answer for me is
NO WAY IN HELL! 
Because call me nuts – but isn’t it fraud to apply for a mortgage or loan under you own name, when you know its actually for someone else, especially when you are doing so on the promise of being paid money by these people when the loan draws down, and then a monthly fee from them?
This is what has happened to a couple on the Kapiti Coast. They got scammed by Kerry Brundle, a mortgage broker. And they have finally woken up and gone to the police – along with many other victims who for some utterly inexplicable reason took out loans to give this woman money. The mortgage payments were supposed to be met by Brundle, or some other fictitious character and then the people scammed were also supposed to receive a payment when the loan was drawn down, and then ongoing payments each month. To say “Thank you”.
Mark Mason can testify to how persuasive Ms Buddle could be. He took out a $42,000 mortgage on his house in Paraparaumu in 2008 so he could lend her money to renovate her home. He has since had to sell his house to avoid a mortgagee sale.
“She said it would be good for both of us. I trusted her, she was a friend. I thought this has got to be easy – get $1000 upfront then $100 a month – for signing a piece of paper.”
Were they all barking nuts???
Why oh why oh why would you mortgage your house, risk yours and your families financial future to give money to someone else? Charity is one thing – stupidity is quite another. If you have the money and want to help people – that’s great: laudable and entirely your choice. But when you are prepared to sign loan documents under your own name knowing full well that you are lying about the loan being for you in exchange for money, I’m afraid any sympathy I have goes out the window. To me – this is what greed is – you do something which highly unethical, because someone is going to pay you money to do it.
That doesn’t diminish how much of a snake Kerry Brundle is – living like a millionaire on the money she scammed out of people. There are an awful lot of people out there pretending they have a lot of money when they don’t, so she will not be the last person to get caught for trying to live off other people’s money I’m sure.
Why do people do this?
We were prepared to take a certain amount of risk when taking out mortgages to buy our investment properties. But always – we ran the numbers, listened to advice, and remembered that if we screwed up or things got difficult – we were risking not just our home and future – but that of my Parents and brother as well. I sure as hell would never risk that to borrow money for someone else! If I give money – for any reason – it is money I can afford to give – and I give it because I want to – not because someone will pay me to do so.
Like what Avalon has to say?
Click Here to buy Avalon's Guide or Click Here to buy the E-Book
I’m a credit card tart and proud of it!
Filed under: Banks, General Budgeting, Interest Rates, Credit Cards & Mortgages in NZ
A credit card tart is someone who swaps the balance of their credit card to another card in order to take advantage of special low introductory rates on balance transfers.
This was hugely popular in the UK in the years before we emigrated, where it was not unusual to get several offers in the post each month from different providers, often with 0% interest on the balance transfer.
Now many people took these out, and ended up spending yet more money and ended up with a lot more debt. But people in the know used these rates to pay down debt faster and faster – including us.
Yet when we came to New Zealand, there was no such thing. With standard interest rates on cards at about 20%, “low” rates were about 7% at the cheapest. But now ANZ are offering 2.99% on balance transfers for 6 months. And while most banks won’t “lend” me money (because we have investment properties), one of our mortgages is with ANZ and they have decided to take our business. I am not taking on an extra credit card – I will be canceling the ASB card as soon as I have the physical new card – I just want to take advantage of a good offer!
This is the only credit card we have with debt on it – and it is associated with Hubby’s contracting business – so this is where all the set up costs, training costs and such went. The interest we are paying on the card with ASB is about $200 a month. On the ANZ card it will be about $30.
Not a bad saving.
Even better – one of those money saving options that results from not having to “give up” a single cup of coffee (or anything else!)
Of course the trick to being a successful Tart is to keep paying off the credit card at the same rate, and not see the $170 reduction as extra money you can spend! I will be aiming to have the balance paid off in full by the end of the 6 months introductory period, and then we can go back to not having a revolving balance on any of our cards.
So thanks today goes to ANZ bank – for not only helping me out with my finances and budgeting, but for making the process of getting the cards and transferring the balance an easy and pleasant one. I am very impressed.
In contrast to my opinion of Kiwibank.
Like what Avalon has to say?
Click Here to buy Avalon's Guide or Click Here to buy the E-Book
Making the most of your Credit Card Provider
Filed under: Banks, Interest Rates, Credit Cards & Mortgages in NZ
Did you know that when you buy good and services on a credit card – you automatically access one of the most convenient consumer protection services I have seen?
Most people don’t.
If you don’t get the service you paid for, and you are getting nowhere with requesting refunds – you can contact your credit card company and ask them to reverse the charge.
You get a nice credit on your card, and the seller has to take it up with the credit card. In the UK you can often do this over the phone, but here in New Zealand you usually have to fill out a form laying out the steps you have taken to resolve the issue with the seller. Often, an email or two that you have sent the seller, showing that you got no reply, is enough.
Please don’t be shy about using this service – especially if you live somewhere where you are being charged for your credit card.
It can save you a lot of money – and to be honest – even if it saves you a little bit of money – better that money is in your pocket than the pocket of someone who “sold” you goods or services they didn’t provide. This also means you should try and pay for good and services with a credit card whenever possible, so that you do have this kind of protection.
Good luck – it works for me, and prevents dishonest businesses taking advantage of me!
(Note: I learned today that this apparently is not the case everywhere – such as Malaysia.)
Like what Avalon has to say?
Click Here to buy Avalon's Guide or Click Here to buy the E-Book
Well Done to ASB
Filed under: Banks, Interest Rates, Credit Cards & Mortgages in NZ
It’s really nice to be able to say that a Bank has done something really worthwhile but I think ASB deserve a gold star for doing just a little more to help people in Christchurch, and show a bit of team spirit and flexibility.
We realise that some ASB customers have been significantly affected by the Christchurch earthquakes so we have updated our assistance package to reflect this. If your home is uninhabitable or your income has been significantly impacted talk to us as you may be eligible for the following discounted rates on your existing products:
Home Loans
Save on your home loan rates for up to 12 months
We’re offering up to 12 months at a reduced rate to help make things easier. That means 0.5% discount off your existing fixed rate; and/or 1% discount off your floating rate.
Up to 6 months payment holiday on a home loan
Take a break from repayments (although interest will be added to your loan during this period increasing what you owe).
No Early Repayment Fees if you repay a fixed rate home loan, where a home is destroyed or suffered major damage as a result of the earthquake.
No establishment or adjustment fees if you need to establish or restructure a home loan as a result of the earthquake.
Credit Cards
A discounted rate of 6.24%p.a. on your ASB Credit Card for 12 months. This rate is subject to change.
Immediate consideration of any requests for emergency credit limit increases and review of credit card instalment repayments
Personal Loans
Up to six months payment holiday and a discounted interest rate for existing Personal Loans for 12 months. This is set at the current housing variable rate.
Term Investments
Access to funds in ASB Term Deposit or ASB Term Fund accounts without receiving a reduced return on your ASB Term Deposit or paying any ASB Term Fund withdrawal fees.
Insurance
Our support if you’re working with IAG on claims over and above the Earthquake Commission cover.
All Christchurch customers are also eligible for a 90-day emergency overdraft facility
Borrow up to $10,000 if you have a home loan (or $2,000 if not) at a special variable rate of 1.25% p.a. below ASB’s housing variable rate. Right now that special rate is 4.5% p.a.
These discounts are actually quite significant. To help put that in context, I recently had to negotiate damn hard to get a 0.1% discount of my floating rate mortgages, and my fixed rate (only one of those with ASB) is still fixed with no discount.
And the no early repayment fee can literally save tens of thousands of dollars.
ASB have similar offers in place for businesses affected by the Quake, and this is in addition to the emergency package that they set up, along with the other banks, immediately after the quake:
ASB Christchurch Business Rebuild Fund
We’ve set up a $100 million fund for ASB SME business customers with existing loans that have been substantially impacted by the earthquake.
The fund will offer a 12 month interest free period, followed by a discount of 1.00% off your rate(s) (fixed or floating) at that time for up to two years.
Principal repayments are not required during the first 12 months.
The offer is available until 31 August 2011.
To ask about any of these options, or just chat about your situation and how we can help, please call us on 0800 272 222 between 8am to 5pm Monday to Friday.
Lending criteria applies. Interest rates subject to change. ASB terms and conditions apply.
ASB Christchurch New Business Fund
We’ve set up a $100 million fund to encourage new business in the Christchurch region.
This fund is available for both existing small to medium business customers and new businesses whose future cash flows are expected to be financially viable within 12-24 months.
A maximum amount of $1 million business lending per customer.
The fund will offer a 12 month interest free period, followed by two years at 1.00% discount on customer rate for two year fixed rate and variable rate Term Loans and Overdrafts.
Principal repayments are not required during the first 12 months.
The offer is available until 31 March 2012.
I mean – Interest free loans for up to a year? I cannot tell you how mindblowing this is in New Zealand. This is not a place that ever took up the idea of 0% on credit card transfers (though ANZ are offering 2.99% at the moment).
Im really impressed – and let’s be honest here – it takes and awful lot for me to impressed with a bank. I am assuming that the other banks will follow their lead – but ASB got there first, and they get the credit.
Like what Avalon has to say?
Click Here to buy Avalon's Guide or Click Here to buy the E-Book
Avalon’s Guide On Facebook
-
