Aug
30
Written by:
Pedro
30/08/2008 4:13 p.m.
Good day Money Maestro’s!
Well it’s been a busy time for Coach Pedro but here I am ready to roll and help you guys save money, beat your banker and avoid financial whoopings! So Credit Cards, well don’t get me started on how much I hate plastic (Eftpos and credit cards), plastic makes it too easy to go whacko and burn that cash you were saving for those trips, fun and other good stuff. It’s better to stick with your Cash Diet, the easiest way to manage your weekly spending. Ok I hear you, enough of the lectures Pedro, give me the juice. Well here it is.
Do you ever overspend on your credit card? You know the bill comes in and you have spent more, more, more than you should have. I mean how where you to know, you thought you had the money right? Ah such is the trap of the credit card, spending money you don’t have! Now I have been told by a few punters that although the Cash Diet is simple and decisively effective, it does not have much ping when it comes to paying online or by phone. For this, you need plastic. Ok so if you do need a credit card, begrudgingly so be it. But if you want to keep it on a tighter rein, I got some options for you.
There are a couple of products that can help. With these you only spend money you have got, no credit with these little suckers. The first is the Loaded Card offered by NZ Post. This one basically works like pre paid mobile phone. You just “top it up” and spend the topped up amount. It’s good because in line with buckets, it keeps things clear and separate. You can for example put $300 on it and that’s all. You can’t spend more than this. Here’s a quick overview of the fees (see online for more detail (https://www.loadedcard.co.nz/fees/)
· $16.5 opening fee
· $1 for every reload
· $10 yearly account fee
· If inactive for 6 months, $5 fee
The other one is the Debit Plus card from Westpac. Now this critter has the buying flex of a credit card but is directly linked to a Westpac bank account. Ah see that, you need a Westpac account, Westpac want you to open an account with them, clever eh. Now this card is better than a normal credit card as there is no credit trap waiting for you, you can only spend money you have. But you can still spend away your whole bank account like you can with Eftpos, so tread carefully! If you have a weakness for plastic you might be better setting up a separate account to tie this little plastic money sucker too. Then at least you can transfer in a limited amount and cap your spending. Here is quick fee summary, again check online for the full details.
· $10 annual account fee
· Electronic transaction fees may apply depending on the Westpac account
· Account fee may apply. Again depends on the type of account
So there are some options for you. Remember the best way to steer clear of financial whoopings is by sticking to your Cash Diet. No plastic!
Until next time......
Coach Pedro
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