Inside. Issue // 03 September 2013 By Kyabra Community Association & Fair Finance Australia TAKE ME I M FREE

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1 Inside Watch Your Regular Insurance Repayments Jean s Story: How She Stopped Renting Household Goods... Identity Fraud It Wouldn t Happen to Me! I Didn t Think I Spent That Much on Takeaways! Talking Stars + Good2GoNow = Cheap Appliances Surviving on Newstart TAKE ME I M FREE Issue // 03 September 2013 By Kyabra Community Association & Fair Finance Australia

2 Watch Your Regular Insurance Payments If you pay your insurance premiums fortnightly or monthly by direct debit from your bank account, then monitor your account as a payment dishonour could result in later problems. If just one payment is dishonoured and you don t notice, and/or take no action to catch up you may not be fully covered by your policy. When you miss a payment, the insurance company will send you a letter about the matter which you should action. But be aware, whilst you are in arrears any claims that you may make may be declined as you are technically not covered. Different companies have different policies around this, but it s better to not to be in that position. One solution is to set up a separate bank account call it your Bills Account and on each pay or benefit day get your bank to transfer a fixed amount to cover all your direct debts. Use this account as the one for all your direct debits, including insurance and other direct debit bills. This bills account can then be easily monitored for any dishonours as they are not buried in amongst all your everyday transactions. Having an account dedicated to bills means you can easily monitor your payments. That way you don t accidently overspend and leave yourself short for those really important payments, like insurance and rent. ASK YOUR BANK ABOUT GETTING A FEE FREE ACCOUNT Jean s Story: How She Stopped Renting Household Goods... When we first met Jean, she was a regular user of a rental service. She obtained much of her household items such as beds, furniture and electrical items through a rental service. When Jean discovered No Interest Loans (NILS), Jean realised there was another more affordable way to furnish her home. Jean found out that by renting her furniture she was paying almost three times what the items where actually worth. Over the past 3 years Jean has gradually replaced her rental items with items purchased through a NILS loan. Because she is spending less on rentals, she can use this money to repay her NILS loan faster. Jean still has a few rentals left, but it won t be too long before she owns all her own furniture. The money she has spent on renting will be better used on other household priorities. OWN IT, DON T RENT IT! ~ 2 ~ ~ 3 ~

3 Identity Fraud It Wouldn t Happen to Me! Many people on average to low incomes think that identity fraud is nothing to worry about. However not having much money in the bank does not mean that they aren t a target. When it comes to identity fraud, it s not just your money someone may be after. Identity can be used to purchase goods and services that then result in defaults on your credit report which may mean that you have difficulty gaining access to loans and/or rental properties. All that someone needs to sign up for a mobile phone or internet plan is a driver s licence with address and date of birth and a good credit rating. In the few months until the service is cancelled, someone can rack up a bill in the thousands. An unpaid phone bill can mean a credit default against your name and the loss of a good credit rating. If you never bothered to report the theft or loss of your licence to the police, then correcting your credit report becomes very difficult and almost impossible to fix. All corrections must be based on evidence and a police report is really useful in these circumstances. So, when it comes to important identity documents like drivers licences and passports, please keep them in a safe place. If they do go missing, or are stolen then report this to the police. The she ll be right attitude does not work here. You never know when it could come back to bite you! I Didn t Think I Spent That Much on Takeaways! When it comes to counting how we spent our income, we are often very forgetful. One convenient way to keep tabs on what you are buying is to use a spending diary. All you need is a piece of paper or a notepad and simply write down everything you buy over a two week period. For those who own a smartphone, you can now use an app called Track My Spend which is available for both iphones and Android phones. The app is a great tool for calculating how much you spend as you go, and saves adding your bits of paper. Tracy, a single mother of two kids, who used Track My Spend said, I was amazed, I didn t think I spent so much money on takeaways. I thought it would have been around $30, but after two weeks, of recording everything I bought, I had spent $130 on fast food! You can find more information on Track My Spend app at the MoneySmart website. CONTACT VISIT WWW. MONEYSMART. GOV.AU FOR MORE S AND TOOLS TO HELP YOU MAKE THE MOST OF YOUR MONEY ~ 4 ~ ~ 5 ~

4 Talking Stars + Good2GoNow = Cheap Appliances If you thought you couldn t afford an energy efficient appliance, think again. The HESS Talking Stars program is currently providing generous subsidies to help people on low incomes to purchase energy saving appliances. HESS TALKING STARS FINISHS IN JUNE 2014 This is how you can save you money on purchasing a new 3.5 energy star rated fridge The recommended retail price of a 393 litre fridge is $797*. Through the Good2Go Buying Service you can get this fridge for $579*. With a HESS Talking Star subsidy we can reduce this price by a further $200. The price now is only $379*. The HESS Talking Star subsidies and the Good2GoNow Buying service can only be accessed through the No Interest Loans Scheme (NILS). So you will need to be eligible for a NILS loan to take advantage of this great offer. Other products which can be purchased through both the Good2Go Buying Service and the HESS Talking Stars program are: Refrigerators and freezers Chest freezers Dishwashers Washing machines Clothes dryers If you own your own home you can also purchase: Solar and instantaneous gas hot water systems Installed spilt system airconditioning Not only will you save money on a new appliance but you will also save on your energy bills. To find out more, contact Kyabra or Fair Finance. *Prices were correct at time of printing but are subject to change without notice. Surviving on Newstart If you are on a Centrelink allowance such as Newstart or Youth Allowance you are probably finding it very tough to make ends meet. Unlike other payments such as the Aged Pension or the Disability Support Pension, Newstart is not, according to the government, a living wage. They call it an allowance because as the Government sees it, it is a contribution to your income and it is up to you to top it up by working or some other way. The Queensland Council of Social Service (QCOSS) has clearly shown that single people on Newstart do not have sufficient income to afford a basic standard of living. That is one that goes beyond the survival items of food, shelter and clothing and provides an opportunity for quality of life and social inclusion. It requires access to health, safety and modest contributions to wellbeing such as recreation, entertainment and social outings. QCOSS states that households who can t afford this basic standard of living then they face tough choices every week about what to go without. Over time, these households would be at risk of problems like unsustainable debt, electricity disconnection or eviction and could easily face family conflict or breakdown because of financial stress. So if you re in financial stress because you re on a very small government allowance here are some tips: Ask family or friends for help Avoid rent by sharing with families or friends Make use of emergency relief centres for cheap or free food Ask your job service provider if they can assist in paying for the things which will help you search for work Avoid taking out loans ~ 6 ~ ~ 7 ~

5 Community Microfinance Reaching more people by recycling money by providing access to safe, fair and affordable credit. NILS (No Interest Loan Scheme) Interest free loans up to $1,200 for new household assets (whitegoods and furniture), educational, medical and basic household repairs. To locate your nearest NILS provider visit org.au. Alternatively: Call: Website: Call: Website: Fair Finance Loans Personal loan from $500 to $4,000 over 1 to 2 years for any worthwhile purpose Call: fairfinance@foresters.org.au Website: StepUP Loans Low interest loan from $800 to $3,000 over 1 to 3 years for asset purchases such as whitegoods, cars, computers, medical expenses and house repairs. Where: Logan East Community Centre Call: stepup@lecna.org.au P: P: Disclaimer: The information contained within this newsletter from all writers is provided for informational purposes only and is not intended to substitute obtaining professional financial advice.