Smart use of plastic will avoid interest costs
TIME spent travelling between home and work can become a moneymaking exercise for people prepared to think a little differently.
Whether it’s on foot, by car or on public transport, new technologies have created new ways to generate some extra cash while on the move.
It won’t be enough to retire early, but these days every dollar counts. Here are some ideas.
ON FOOT
If you have a smartphone, you can use the Job Spotter app, which launched in Australia last month and allows people to photograph and upload “help wanted” signs from business shop front windows. The images are uploaded to jobs site indeed.com, and app users receive $1 to $1.50 on average per ad.
“Indeed launched the app in the US last year and so far there have been over 800,000 jobs uploaded by users. Job Spotter is already the second biggest source of mobile clicks among US jobseekers,” said Indeed’s managing director for Australia and New Zealand, Chris McDonald.
Student Jorja Larkin, 21, found out about Job Spotter from a friend in the US. “I walk past a bunch of shop front window job ads on my way to and from the train station, so it’s a really easy way to make a few extra bucks, which never hurts when you’re on a student budget,” she said. “It’s become almost like a game now. I’d say I would make an average of $5 -$7 a SAVVY credit card users looking to avoid paying hefty interest costs can do so if they are smart about the way they use plastic.
While credit card interest rates remain on average at 17.28 per cent, card users are getting slammed by high costs if they fail to pay off their card in full each month.
The nation’s credit card balance has climbed to a giant $52.5 billion; nearly two thirds of this is accruing interest.
Analysis by financial comparison website Mozo has revealed that on the average card balance of $4400, users are getting stung by $63 in monthly interest charges if they cannot clear their card debt in full.
But for the smarter card users, Mozo’s spokeswoman Kirsty Lamont said there are some simple tricks to avoiding interest altogether.
“Paying interest is like throwing money down the drain, you really don’t want to be paying interest if you can help it,’’ she said.
Ways card users can escape interest costs include using interest-free days – there are now seven cards available on the market that have interestfree days spanning 62 days or the equivalent of nine weeks.
Balance-transfer deals where you transfer one card debt to another and enjoy a lengthy interest-free honeymoon period of up to 24 months is also another way to avoid interest costs – if you pay your debt off during this time.
Earlier this year ANZ reduced interest rates on two of their cards by 2 per cent to 11.49 – its lowest rate since 2003.
The bank’s head of consumer cards Anuja Sivamalai said there are some easy behavioural tips that could save customers from paying interest.
“Set up reminders and direct payments to remove that balance or use your banker to make sure you are on top of when those payments are due,’’ she said. “Check the terms of the interest-free periods because the days fluctuate.
She urges consumers to limit the number of cards they have and warned them to be aware that promotional offers often revert to higher interest rates once these periods end.