Money trends that will keep you one step ahead

UNDERSTANDING the trends that are shaping the financial sector will give you greater control over your savings and debts in 2019.

The release of the banking royal commission’s final report in February is likely to toss up a few curve balls, and there are other issues bubbling away. Here are four things to watch.

1INTEREST RATES

The Reserve Bank hasn’t moved its official interest rate since August 2016, and forecasters expect no change until at least later this year.

Ratecity.com.au research director Sally Tindall said 2019 would be interesting, amid uncertainty about the Australian and global economy.

“It’s going to be hotly watched to see if the Reserve Bank ends up cutting rates after saying time and time again that the next move will be up,” she said.

However, the banks “don’t dance to the beat of the RBA anymore” and showed this in 2018 with their own rate rises, Ms Tindall said.

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This could be repeated in 2019, so people should pay down their debts, she said.

“Now is the time to get ahead on your mortgage if you can, to get some breathing space for when rate rises do finally arrive.”

2CREDIT CARDS CRACKING

Ms Tindall said credit cards would become less popular amid the surging popularity of buy now, pay later schemes such as Afterpay, and card providers weakening their reward programs.

“A lot of young people are choosing not to get a credit card,” she said.

Others would ditch their cards when they realised the rewards were no longer worth it, while new repayment rules would make it harder to get cards, Ms Tindall said. “Look for a credit card that is not sending you backwards – 30 cards have no annual fee.”

3GET YOUR DATA WORKING HARDER

People’s Choice Credit Union spokesman Stuart Symons said that from July 1, major banks would have to make available to you all your credit card and debit card account and transaction data, with mortgage data to be made available from February 2020.

“You will be able to authorise others to receive this information – and that’s where the power can truly make your data work for you,” he said.

“Imagine being able to use live information to help with budgeting, understanding your spending habits better and being able to compare credit cards, telephone plans and energy deals.”