Interest rate – yikes!

Because I haven’t carried debt on my credit card for some time, I haven’t had much cause to check the rate on it. Its now at 14.45 per cent!. And mine is supposed to be a low-rate card! In Australia, your interest rate doesn’t change if you are late paying, or if you are over limit, though you do have to pay fees in those circumstances. Basically, everyone with a certain card type pays the same rate. It’s just unfortunate that everyone’s card – and mortgage rates – seems to be on the way up. If I had credit card debt now, I’d definitely be motivated to seek an alternative card though.

If you are wondering about the rate, it’s high because Australia is actually in a very good economic state right now. The sub-prime issue in the US hasn’t made huge inroads to our markets here yet.

I guess the good part about the high rates is that I’ve got a 7% return on a sub-account to my main savings account. I have easy online access to it and can get it immediately by transferring it to the main savings account any time.

In other news, our Aussie dollar is closing in on the US dollar – soon we might be on par or higher! In 1996 when I came to the US on a holiday, the AUS:US exchange rate was about 76c:$1, but the Aus dollar has actually been down as low as nearly half the US one in the last few years. I think you’ll be seeing a lot more Aussie tourists visiting in the near future as it has become so much more affordable (unfortunately I won’t be among them anytime soon as I have other financial priorities right now, but I do plan to come back and see so much more).

 

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