Mike Smith, chief executive of Australian banking major ANZ has issued a stark warning, suggesting that world’s bank will be forced to alter their business model in response to the “permanently” higher cost of banking.
Mr. Smith issued the warning whilst unveiling the latest set of ANZ results last week. ANZ’s third quarter underlying profits leapt 37 per cent.Despite the great performance, Mr. Smith added a note of caution, saying that the costs of wholesale funding were now a permanent feature of banking a result of the global financial crisis.
Australian banking major ANZ says it will eliminate $18,600 in debt racked up by pensioner on his credit card, after the lender began steadily increasing his credit limit over the last nine years.
Alec Stubbs, a 72 year old pensioner, who has lived on a pension for several years, receiving $485 a fortnight, had his credit card limit increased to $46,000 since 1991.
Australian banking major, National Australia Bank, once again differentiating itself from its big four rivals over exception fees, says that credit card law reform would benefit consumers.
Lisa Gray, who runs the lenders personal banking division says that NAB has already implemented changes to its credit card portfolio, which are consistent with the federal government’s proposed changes to credit card laws.
Nearly half of all Australian households say they worry over the threat of looming interest rate rises, but only 20 per cent say they expect to have to carry increased debt levels in the next few months.
According to the results of the latest survey by Dun & Bradstreet, which polled consumer expectations across 1,205 individuals in Australia, nearly half or 49 per cent said they believed that interest rates would rise further, and the hikes would dent their finances.
Spending by Australians on charge and credit cards including advances increased in May according to the Reserve Bank of Australia, who said $19.631 billion was spent during the month.
The amount spent in May on charge and credit cards rose from $17.960 billion in April, whilst the number of transactions was slight higher to, at 131.035 million in May, up from 123.289 million in April.
Australians are saving more with the level of household savings increasing during the June quarter. However credit card have usurped the mortgage as the main type of debt being carried by Australians for the first time in nearly four years according to the results of a survey.
Australian banks charged their customers a collective $12.7 billion in fees last financial year, which represents an increase of nine per cent from the previous year, according to new data from the Reserve Bank of Australia.
Global banking giant Citibank is currently running an extremely compelling offer on their Citibank Emirates card.
The Citbank card has a great deal on balance transfers, with a rough annual interest rate of 2.9 per cent, and perhaps the best feature is that card holders earn 3 Skyward Miles, which is the Emirates Airlines frequent flyer program for every $1 spent (normally is just 1.5 miles per dollar spent).
Nearly 40,000 bank customers have signed up to what looks like Australia’s largest ever class action law suit, with the initiator saying it believes it will register as many as half a million claimants for legal action seeking reimbursement of “exorbitant” exception fees.
Personal loans can be amongst the cheapest way to borrow, but we can’t help but stress how important what the reason you are borrowing the money for.
If you are looking to finance a new flat screen television or go on holiday, or any other luxury, a personal loan is not your best option. Fortunately the financial crisis has made most people more aware of their finances and changed the way they think about borrowing.