“Is Australia lazy with regard to saving money?”
There is a report that was put out by Info Choice that indicates that Australians as a whole are costing themselves around $6.1 billion a year by not shopping around for banking products.
This figure of 6.1 billion (and yes that’s billion with a “B”) is broken down as follows:
$5.4 billion on home loans
$257 million on credit cards
$482 million on other personal lending
Currently in Australia there are 22,046,871 people. So if we divide this $6.1 billion between each person that equals $276.68.
That is $276.68 between every man, woman and child. So if you took out the children (who are unlikely to have any debt) this figure would be much higher. This figure also includes people who have no debt. So take them out and the amount would jump up again.
Also remember this only takes into account debt with a bank; this $6.1 billion figure does not include money you might save in fees on savings accounts by shopping around.
So the question is, “Are you costing yourself money by not shopping around?” Where is the best place to start? How do you find savings in less than 20 mins?
Well, there are a huge number of websites that compare all sorts of Australian debt-related products. In fact, the company that did this report, Info Choice has a website www.infochoice.com.au that compares all sorts of bank products.
Start there and then google other websites that compare debt in Australia.
Remember you don’t have to change anything. You might just want to look at a good rate. Then call your own bank and see if they will drop their rate to the one you are looking at. You never know what they might say until you threaten to leave for a lower rate.
I suggest you do this right away. Find out if your deal is overpriced. Find out if your savings account fees are too high. Find out how much your home loan rate is compared to the cheapest you can find.
Do some phone calls and if necessary, change companies. You might find out that with 20 to 40 minutes of phone calls, paperwork and investigation, you could start saving yourself $500 a year. Also this is not just for this year but you will save a lot going. This might be some of the easiest money you have ever made.
Also I suggest that once a year you recheck that you are on the best deal. Mark it in your diary to do this. You might find that things have changed and there are even better offers than what you are currently on.
I don’t think Australians are lazy by nature however; we could be a touch more productive if $6.1 billion dollars is slipping through our fingers each year.
Thanks Adam Goulding (Also known as Mr Home Budget)
For more information please go to www.mrhomebudget.com.au
