This week in banking - 1 in 14 Aussie home loans deferred and 5 other things you don’t want to miss!
Friday 22 May 2020
- COVID-19: 1 in 14 Australian home loans deferred
- Business closures see almost 600,000 Aussies jobless
- Worried about your credit rating? Here’s 6 ways to improve it during COVID-19
- International money transfers to fall by 20% due to pandemic
- Why you should switch credit cards in 2020
- Saving post coronavirus
All in this week’s banking recap.
1 in 14 Aussie home loans deferred due to COVID-19
Fresh numbers from the Australian Banking Association (ABA) have shown that 1 in 14 home loans in Australia have now been deferred due to the outbreak of COVID-19.
This totalled to almost 429,000 mortgages, (a massive $153.5 billion) and is 10% more than the ABA’s last stats update.
Plus, if you add the total number of all loans (including business and personal loans), the number of deferrals skyrockets to 703,000 since the beginning of the pandemic, which totals to about $211 billion.
Read full article: 1 in 14 Australian mortgages now deferred as COVID-19 impact continues and check out what ABA chief executive, Anna Bligh has to say about the new numbers.
COVID-19: Nearly 600,000 Australians without jobs as businesses shut
This week, new stats from the Australian Bureaus of Statistics (ABS) have shown that a whopping 594,000 Aussies have become out of work over March and April while businesses were closed.
While full-timers represented 220,500 of those job losses, part-time workers were hit even harder representing 373,800.
According to the ABS, unemployment levels now sit at 6.2%, but the Reserve Bank of Australia (RBA) previously predicted that unemployment could peak at 10% in the coming months.
Read full article: Read full article: Nearly 600,000 Aussies jobless amid COVID-19 business shutdowns for an in depth discussion of which business may or may not recover post pandemic.
6 ways to boost your credit rating during the pandemic
While your credit score may not be one of your top priorities during COVID-19, it may be worth giving it some thought to help yourself in the future.
Your credit history considers a range of things from your repaid loans, current debts and other financial moves you make. Ultimately, it will determine how valuable of a borrower you are to potential lenders later down the track.
So here are 6 ways to keep your credit history healthy during COVID-19:
1. Check your credit report and amend any errors
2. Don’t stress about deferred repayments and financial support (it won’t affect your credit score right now)
3. Contribute what you can to your debt
4. Take out a line of credit (if you haven’t before)
5. Don’t overdo it on credit applications
6. Stay put in your current job or rental property if you can
Read full article: 6 tips for improving your credit rating during COVID-19 for a deeper explanation on maintaining a healthy credit score in a pandemic.
International money transfers to plummet by 20% during COVID-19
In April, the World Bank predicted that in 2020 global remittances could drop by an astonishing 20%, the steepest in recent history.
The international money transfer industry has been hit hard by the pandemic, mainly due to high unemployment and job loss among migrant workers who can no longer afford to send money home.
World Bank Group’s president, David Malpass said that the drop will be damaging to a “vital source of income for developing countries.”
In fact, the World Bank expects funds to be sent to low and middle income countries to drop by 19.7% to $445 billion this year (compared to a record high $554 billion in 2019).
Read full article: International money transfers to plunge 20%, but still 'vital' amid COVID-19 for ways to save on international money transfers.
It could be time for a new credit card this year, and here’s why
Since the outbreak of COVID-19, the way some Aussies spend and use their credit cards has changed dramatically.
So, it may be time to reconsider what you’ve got and start shopping around for a better deal, here could be some reasons why:
- Reason #1 - The annual fee is too high and the perks are not worth it
- Reason #2 - Your spending habits have changed
- Reason #3 - The introductory period is coming to an end
Read full article: 3 reasons to switch credit cards this year if you’re not feeling great about your current credit card and are looking to jump ship.
Post-pandemic: saving after COVID-19
With the economic effect of COVID-19 becoming clearer each day, and isolation restrictions starting to be lifted, people are starting to question whether life will return to “normal.”
One indicator that things are changing is that Aussies all over the country have found ways to save that could carry on post-pandemic and well into the future.
Whether it’s saving on the daily commute to work, flying less for business meetings, buying local produce or switching to plant-based meals, some people are considering keeping up these “iso” habits to help plump up their savings stash once COVID-19 is over.
Read full article: COVID-19 and the recession: Saving in a post-pandemic world for more on what Aussies are doing to keep more cash in their pocket.
Looking for some killer savings accounts to keep your pandemic savings stash? Check out the hot deals below!