Jellyman Investing - Personal Finance for Australians
If you're an Aussie (A.k.a Australian) and looking to get control of your debt, or maybe learn about investing in the stock market, possibly real estate investing, then you've come to the right place. My name is Jed Guinto and this is Jellyman Investing!!
The origins of this podcast name will be explained in due course! Many years ago, I was broke and deep in 5-figure debt. I didn't know anything about finances, didn't know how credit cards worked, had no savings and the thought of one day buying my own property was just wishful thinking.
Maybe you're going through some of this. Fast forward 5 years and everything has changed. No more debt, no more credit cards, 5 figures investments in the stock market, I have my own property and a passive income. All in 5 years. Is this something you'd like to achieve?
My goal to teach you how to get control of your finances, teach you secrets and techniques we've personally used to take our lives back from Banks and institutions charging us exorbitant fees, real estate agents using fancy jargon to confuse you and finally, social media pressuring you to make financial decisions you don't understand. Welcome, to Jellyman Investing!
Jellyman Investing - Personal Finance for Australians
S01_E03 - Debt, Credit Cards and Personal Loans
https://www.patreon.com/Jellyman_Investing
There is nothing I hate more than Credit Cards and Personal Loans. Many times designed and marketed to prey on the weak of our society to keep them down, low and poor. Generating billions of revenue for banks at interest rates that are utterly ridiculous and difficult to understand.
Before I get on with this episode and vent like crazy about credit cards, a reminder that I have a Patreon page….
Patreon.com/Jellyman_Investing
where you can read articles, download spreadsheets, get internet resources and even chat with me. It's free to join.
Also, a disclaimer, that I am not a financial advisor, please consult with a professional before making any financial decisions. On with the episode.
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Before making any investments or significant purchases, it's crucial to eliminate debt, especially from credit cards or personal loans. These debts act like a hole in a ship, hindering progress regardless of other factors.
Debt, especially with high interest rates, impedes financial growth. Many only pay the minimum on credit cards, which barely reduces the principal, the original borrowed amount. This results in most payments going towards interest, with interest continually growing due to ongoing spending.
Many aren't aware of their interest rates and are shocked when they realize how much they've paid. As debt grows, banks frequently contact debtors, contrasting with their usual unavailability.
To address debt, consolidating loans through a balance transfer can be effective. For instance, if you owe $5,000 on each of three credit cards from different banks, a bank like ANZ can consolidate this debt. This means you now owe ANZ $15,000 instead of the three original banks.
The advantage is that ANZ may offer 0% interest on the consolidated debt, compared to the high rates of the original banks. This allows payments to fully reduce the principal. However, this 0% interest is usually temporary, often for 12-18 months, and may involve transfer fees. After the promotional period, a higher interest rate may apply.
The key to success with this strategy is having a plan to pay off the debt before the low-interest period ends. This approach requires discipline but is vital for financial success. The first step towards building a sound financial plan is to get out of debt.
