18 Nov Passing interest rate cuts on to credit card holders
Interest rates on most credit cards have not been reduced despite reserve bank lowering the cash rate by 1.25% over the last 12 months.
Each time the Reserve Bank changes interest rates, all eyes are on the banks to see whether they will pass on savings to mortgage holders.
This distracts us from the unchanged rates (averaging around 17.5%) we are collectively paying on $15bn of outstanding credit card debt. Banks have collected an additional $750 million by this sleight of hand.
Don’t be a contributor to these outrageous profits and always follow the two rules regarding credit card debt.
- Pay off your credit card in full each month, and
- Don’t forget rule number one.
 |
About Reuben Zelwer
Reuben Zelwer established Adapt Wealth Management in 2011 to help time poor clients achieve financial freedom. For over 15 years, Reuben has helped professionals, executives, business owner and those approaching retirement make the most of their circumstances by making good financial decisions. Reuben’s professional practice is complemented by substantial voluntary work, which has included setting up financial literacy and savings programs in the local community. |