More Willing to Lower Rates
Consumers are becoming more savvy about their rights and the tactics employed by credit card companies. As a result, credit card lenders are more willing to lower rates when they are asked. They know that their competition is waiting to gobble up their customers, so they will drop rates for good customers with little more than a phone call.

More Willing to Negotiate with Default Accounts
In the past, credit card companies would not budge when customers were delinquent in their payments. Instead of helping out the customer, they sent them to collections and practically forced the bankruptcy proceedings. Today, things have changed.

Credit card companies have faced financial losses during the economic slump. As a result, they are more willing to negotiate with owners of delinquent accounts. If the customer is forced into bankruptcy, the credit card company ends up with nothing. If they negotiate a settlement, they receive at least some of what they owe. This is a way they are cutting their losses in order to try to regain some stability.

Better New Customer Offers
More and more people are shunning consumer credit in these tough economic times. After all, it is the credit hungry society that we live in that seems to have gotten us to this point. People are learning to live on cash instead of credit.

As a result, credit card companies are having to work harder to get new customers. This can benefit us as consumers, because these companies are offering greater benefits to their customers. Higher cash back rates, larger rewards programs and lower introductory rates are all items we can benefit from if we are going to use credit cards. When you get a great offer on a credit card and use the card wisely, you can benefit without spending huge amounts of money on interest rates and fees.

Fewer High Credit Limits
Credit card companies have been hit by huge numbers of consumers declaring bankruptcy or defaulting on their debts. This, in a way, benefits consumers, because credit card companies are no longer offering huge credit limits to borrowers who have no business borrowing that amount of money. A student fresh out of college is not going to be able to get a card with a $12,000 limit today, and this is good news for those who want to use credit wisely without the temptation to over-spend.

Harder for Those with Poor Credit
While you can still get a credit card with less-than-perfect credit, it is getting harder. Credit card companies are steering away from potentially risky borrowers. Again, this is not necessarily a bad thing, because it gives at-risk consumers some boundaries when it comes to credit. The bottom line is that if you can use credit wisely, credit is available, but you may have to work a little harder to find it.

The worst part of the deal is that government leaders specifically stated that there would not be any new tax increases. This was good news for financially battered citizens. It’s too bad it wasn’t true. Some of the fees have been increased by up to ten per cent.

If you’re planning to transfer an automobile registration, prepare yourself. You’ll be paying up to $400 more for the transaction. Personalized license plates can be fun to own, but maybe not when they cost an extra $40. Even disabled motorists are being targeted for rate hikes. Their parking permits have increased by six per cent.

The NSW government is obviously aware that the rate increases would affect the majority of citizens. What better way to raise a large amount of money than to increase taxes on those that have no choice but to own and operate their own vehicle? The alternative is to depend on the inadequate public transport system. Automobile owners are trapped into paying the rate increases – and without warning.

We already know the consequences for residents for this underhanded rate hike. They’ll be paying more for fees that they can’t escape. But what about the consequences for the government officials that put the rate hikes into action after promising there wouldn’t be any tax increases? Unfortunately, we already know the answer to this question.

One of the options developers are using is to continue their construction of exclusive homes with plenty of amenities, but on a smaller scale. Some developers are changing their plans in mid-project. Penthouses that were designed to cover an entire floor are being downsized to half (or less) of the original space. It’s a win-win situation. The developer is able to sell the houses within a reasonable amount of time, and the buyer gets a well constructed home at a more affordable price.

The worldwide recession has not been kind to the housing market. As recently as 2007, sales of homes with prices of $5 million and above were not surprising. The Real Estate Institute of Victoria reports that the number of multi-million dollar homes sold so far this year is half the number sold in 2007. In Melbourne, the number of $5 million and above homes sold is only twenty-five per cent of the number sold in 2007. Today, many of these homeowners are struggling to keep up with payments or are selling their homes at a loss.

Potential buyers wishing to purchase homes in upscale areas may be in for a treat. Home prices in general are declining, and prices for luxury homes have seen the greatest fall in prices. Consumers are not interested in handing over two million or more dollars for a home, even if they can well afford it. Existing home prices are becoming more reasonable and developers are constructing new homes according to the money-conscious crowd of prospective homeowners.

This may or may not be the time for you to jump into home ownership or upgrade to a more expensive home. It’s definitely a buyer’s market, but this doesn’t mean you need to take advantage of the situation. The Australian economy is far from stable, and your financial circumstances can change in a matter of minutes.

This may be a great time to downsize, though. If you’ve decided that you don’t need all the space of your current home, you might be able to purchase a smaller but more upscale home in an area that you would have considered to be off limits two years ago. You’ll need to keep in mind that it may take awhile to sell your existing home, and you may not be able to sell it for what you think it’s worth.

There are certainly some outstanding housing deals available right now. But as with any purchase today – proceed with caution.

The recent recession has made quite a few people change their lifestyles. Top-end restaurants, as well as the more moderately priced restaurants, are one of the first luxuries to go when money gets tight. Money-conscious diners soon realise that eating meals at home or at less costly restaurants can save them extraordinary amounts of cash. Even consumers in good financial positions are being more cautious with their money, and expensive restaurants no longer fit into their plans.

Melbourne is one of Australia’s hardest hit areas for upscale restaurants in. Many restaurants in this city have taken a cut in their prices to attract customers and have let some of their staff go. Some have become quite creative with their lunch and dinner specials, which is something that was unheard of several years ago. The days of attracting customers merely by reputation are gone.

The list of crumbling dining businesses continues to grow. Seagrass, one of Southbank’s finest seafood restaurants, several Docklands eateries, and the Surf Coast’s Acquum and Bellbrae Harvest restaurants have succumbed to the economic pressures. The Crown Casino’s Bistro Guillaume is still in business, but struggles daily.

Reports of Bistro Guillaume losing $100,000 monthly have surfaced lately, but owner Guillaume Brahimi denies the estimates. The award-winning Bistro Guillaume has seen a twenty per cent decline in business recently, but Brahimi insists that the bistro is surviving the financial downturn. There has been speculation in the restaurant industry about whether this celebrated swank restaurant will be able to weather the current economic storm.

Other upscale restaurants across Australia have similar stories. The reason for the struggles and sometimes demise of these luxury dining establishments are the same as any other business: they thought the financial good times would last forever and their debt load was more than they could handle when times became rough. Consumers are becoming more frugal whether they are in dire financial situations or worried that they may soon be, and expensive restaurants just aren’t on the list of “must haves” anymore.

It is a shame that these restaurants that once served their exquisite fare to appreciative diners are teetering on the brink of bankruptcy or have already closed their elaborate doors. But the owners and investors are learning the same difficult financial lessons as the rest of us: don’t take on large amounts of debt, no matter how good the economy looks, spend your money carefully, and always be prepared for the worst.

It will be interesting to see if the remaining top-end restaurants will be able to recover enough to stay in business. In today’s economic situation, even lunch and dinner specials and free appetizers won’t entice many of us to eat out. We’d rather save our money for life’s essential items. Many of us have decided that eating out doesn’t have to mean dressing up in our finest clothes and being catered to by an attentive staff. We’re just as happy and have just as much fun going to an inexpensive restaurant and pocketing the change.

Evidently, Australians are thinking twice before leaving their spouses now that we are in an official recession. Two can live more cheaply than one, and married couples are putting this logic above their wishes to leave an unhappy or faltering union. Many are hoping to hang on until the economic picture brightens a little and they are able to survive on their own.

The divorce process can be quite costly, and then there are payments to the ex-spouse to consider as well as the cost of raising children alone in some cases. Hard-earned assets are typically split evenly, leaving each of the parties to once again build up assets to match the pre-divorce values.

Even those who have divorced their spouses are attempting to re-open their divorce cases in order to receive a larger settlement. There are currently two well-publicised cases: Brian Myerson in London and Steven Simpkin in New York. The ex-wives of both men opted to take mainly cash and properties in their divorce settlements, while the two men kept their (at the time) impressive investment funds.

When the recession hit full force, the investment funds took a dive, and Myerson and Simpkin attempted to take their settlements back to court to regain some of their losses. Both cases are pending. A sensible person would ask, “What if the investment funds had taken a leap in the other direction? Would these men be offering their ex-wives a portion of their profits?” Probably not.

Fortunately (or unfortunately, depending on your situation), Australians are unlikely to see cases such as these with successful endings. The overall attitude in the courts so far has been that allowing these types of cases would do nothing more than make a mockery of the current divorce proceedings and laws. By the way, a few Australians have already attempted to re-open divorce settlements because of the declining value of their assets. So far, no victory has been claimed.

While the divorce rate across Australia continues to decline, requests for pre-nuptial agreements have seen new heights. This is a popular way to ensure that the assets each spouse brings into the marriage will still be the property of the spouse should the marriage end in divorce. Brides and grooms entering into a second (or higher number) marriage usually have more reason to want to protect what they already own.

Perhaps the current recession will make some of us work a little harder at keeping our marriages together and finding ways to compromise. No one can be expected to remain in a marriage that involves abuse, but maybe marriages that are falling apart because of “irreconcilable differences” can be mended. Time will tell.

It appears that the stock market bottomed out in March. Or so we think. Even the experts won’t give us a straight answer on this one. This is the wildest financial ride since the Great Depression, and no one seems to know what to predict for the immediate future. The financial wizards are still scratching their heads over the gains we’ve seen in the past three months.

The three months of stock increases could very well be just a surge in the recent bear market. It is possibly a sudden spike in stock prices before the market falls even further than it did in March. And it could also be the beginning of the end of the recession. It’s too soon to tell. Financial experts are hesitant to put their reputations on the line by committing to forecasts for the next three months.

Whether we are experiencing a fluke increase in stocks or the onset of a much-awaited bull market remains to be seen. We shouldn’t start celebrating just yet. But one thing to keep in mind is that when the market swings downward, the swing back up will match the intensity of the fall. This means that when the market climbs out of the dismal hole it has been in, we can expect extraordinary gains. This is something to look forward to but not something to expect immediately.

While it is evident the stock market has improved in the past ninety days, there is speculation that unemployment will continue to take its toll on Australians. Our economy is still weak, and unemployment is expected to rise even more during the second half of 2009. Along with the growing unemployment numbers, we can expect to see lower housing prices, decreased revenues for service and product businesses, and retailers struggling as a result of decreased consumer spending.

What does all this mean for the average Australian? It’s difficult to tell. There are signs of financial hope, but this may not be a long-lasting improvement. It takes anywhere from two to seven years to recover from a recession. Considering the magnitude of the current recession, it is probably frivolous to think we could actually be climbing out of it.

On the other hand, is there any harm in having high hopes and optimism to see us through these difficult financial times? It’s always a good idea to look at the bright side of a situation and to look forward to better times as long as we’re not fooling ourselves into denying the less pleasant aspects of our circumstances.

Those that lived through the Great Depression know that it’s possible to endure dire financial situations. They know that difficult times can make people stronger, more resourceful, and less apt to take their daily comforts for granted. We need to keep in mind that eventually this frightening financial fiasco will end. We will learn some valuable lessons and perhaps be more cautious with our money for the rest of our lives because of it.

Australia hasn’t seen a financial situation like this for quite some time. Not even the experts who are paid to analyse the economy can give a definitive prediction for the coming months. For now, we just need to continue to prepare for the worst and hope for the best, which is what the experts seem to be doing.

The average worker will certainly feel the effects of their employer’s cost-saving measures, and in some cases, this will lead to real financial struggles. This isn’t the story that’s been hitting the news lately, though. What seems to be more important, as far as the media is concerned, is the fact that business executives are likely to see an end to their mega-bonuses.

For years, these top business executives have taken home huge cheques for their annual bonuses. These are, allegedly, for jobs well done. It seems that this yearly ritual has gotten out of control. Many of these bonuses are larger than the salaries some of the company’s workers bring home in a year. It’s a little difficult to muster up sympathy for someone that will no longer receive a cheque - in addition to an enormous salary - that most Australians would gladly accept to sustain their families for twelve months or so.

It is questionable whether these executives should have ever received these astronomical bonuses in the first place. It’s true that their positions come with huge responsibilities, but their salaries are scaled to include everything their positions entail, including the accountability and stress.

It’s a wonder that this restriction on executive bonuses wasn’t implemented years ago. Surely top management could see how these bonuses affected the company’s bottom line. And they should have certainly realised that the real champions of their businesses were the workers who came in day after day to perform the jobs necessary to manufacture the products or provide services to generate revenue - that made it possible for the executives to walk away with outrageous bonuses every year.

We can only hope that these executives aren’t expecting us to feel sorry for them. They might not be able to afford the newest luxury model automobile this year. Or perhaps they won’t be able to take that ten-day cruise for their holiday. These executives might have to actually join the real world and make conscious decisions regarding their money and do without some of their “necessities.”

Today’s job market certainly calls for connecting yourself with as many people as possible. There are fewer jobs to choose from and more people applying for them, so you need to ramp up your search to get ahead of the competition. The problem is that many networking opportunities occur within the workplace: co-workers who know contacts at other businesses, sales people who have contacts in multiple places, and vendors who can give you the latest news on who’s hiring. If you’re currently unemployed, you’ll miss out on these networking opportunities, but that doesn’t mean you’re completely out of the networking loop.

One of the benefits of working for a company is having business cards you can pass out to everyone you meet. Business cards are easy to carry and have all the basic information anyone will need to remember you along with your contact information (phone, email, and fax). What if you’ve recently lost your job and are no longer the Accounting Specialist at XYZ Company? You order your own business cards and start giving them to anyone that can possibly lead you in the direction of another job.

You can probably find at least a few local businesses that print business cards, or you might want to try one of the online printing businesses. Either way, the cost is usually reasonable enough for the job seeker on a limited budget. The investment will be well worth it. Your business cards will serve as a mini-resume that you can give to hundreds of people.

Be creative with your personal business cards, but don’t try to be too clever or fancy. Unconventional colours or strange fonts may make your information difficult to read and detract from what you’re trying to convey to the reader. Look at as many samples of business cards as you can before deciding which colours and style you want to use. You’ll want your business cards to look professional and attractive.

Make sure all your essential information is on the card, such as your name, contact information, and your speciality. You can use the job title from your last job or use one of your own. You’ll be able to broaden or narrow the scope of your job hunt by choosing the correct job title. Along with this basic information, put your objective on the front of the card (”to obtain a position that utilises my expertise in all aspects of accounting”).

On the back of the card, you can list your pertinent job skills and areas of knowledge. Since you won’t have much room to do this, you’ll need to be concise. The readers will appreciate this because too much information in a small space can be confusing and difficult to read.

It’s a tough job market today, so arm yourself with something that will give you a definite advantage. Your personal business cards are an easy way to give yourself the edge over your competition.

According to the forecasts, the gross national product (GNP) will not have any growth during the current financial year. The next financial year will see a GNP decrease of about 0.5 per cent, but the growth for the following year (2010 - 11) will be 2.25 per cent. The next two years (2011 - 12 and 2012 - 13) should have GNP growth of 4.25 per cent, followed by a constant 4 per cent for the next four years. Most of the questions have been directed at the 4.25 per cent GNP growth projected for 2001 - 2013, because the normal trend growth rate is only 3 per cent.

Why is there so much debate about the optimistic forecasts? Shouldn’t everyone be ecstatic about the good news? With the ongoing recession, it seems that everyone should be embracing forecasts that project larger than normal increases in the GNP. But Australians are hesitant to believe the forecasts outlined by Henry, even though they would like nothing more than a strong recovery from the recession. The world is in the midst of an economic downturn that rivals only the Great Depression, and Australians don’t want to be fooled into thinking that the end of this turbulent financial period is closer than it actually is. After all, these times do call for extra caution.

Henry insists that the forecasts are conservative and reasonable. His reminder to Australians is that the rebound periods for the recessions of the early 1980’s and early 1990’s were shorter that the predicted rebound from the present recession. The 1980’s downturn took only one year for recovery, while the 1990’s took only two. Henry asserts that the three years of recovery (2009 - 2011) provided in the recent forecast is ample time for Australia’s economy to turn around and be on solid ground once again. Referring to the years of predicted above average growth, Henry stands behind the theory that when the economy rebounds from this recession, it will bounce back stronger than ever.

Henry stated that, “Consumer confidence has been much better preserved in Australia than in other countries.” It is true that we have learned valuable lessons from the recessions of the past few decades, and as a whole, our economy is more flexible and resilient now than in earlier years. Compared to the earlier recessions, interest rates were decreased much faster, and the government stepped in with a stimulus program before things got out of hand. Considering all this, Australians are in a good position to weather this economic storm. As in any storm, we are all just trying to figure out how long it will last and how much damage it will cause. The recent forecasts are only that - forecasts. And only time will tell.

Keating, along with former ACTU boss Bill Kelty, created the superannuation system in the early 1980’s. When the system was designed, Keating was the nation’s Treasurer, and he supported the plan during his term as Prime Minister.

The superannuation system was designed to allow contributors access to their savings when they were between the ages of 55 and 60, although the retirement age was set at 65 years of age. Treasury Secretary Ken Henry has recommended raising the age of superannuation access to 67 years, the new retirement age. The changes to the superannuation accessibility would be imposed by 2023.

Both Keating and Kelty are opposed to the recommendation. Kelty commented that the proposed change to the system would “destroy the scheme as we know it.” According to Kelty, the superannuation system would become a burden to Australian citizens rather than the benefit it was designed to be. Keating remarked that he didn’t have a problem with the retirement age increasing, considering that life spans have increased, “but privately paid-for superannuation is altogether a different thing.”

Keating added, “Superannuation was and is designed as a privately provided complement to the ‘tier one’ public pension. Were superannuation to be seen simply as some kind of substitute for the public pension, then the essence of it, the salary sacrifice in it, would be pointless. This is why the superannuation access age is already lower than the pension age of 65. It should stay as it is. It provides people with flexibility. They can buy an annuity income and perhaps also do some part-time work.”

Superannuation funds are compulsory for every working Australian. The question is whether the Australian government should even suggest that contributors need to wait up to an additional twelve years to be able to reap the benefits of their years of saving. The superannuation scheme has put Australians in a much better position than workers in other countries around the globe. After consistently saving money for our retirement years, is it fair that a few lawmakers can make us wait until we’re 67 years old to access this money - especially since our understanding was that it would be available to us by the time we were 60? Undoubtedly, many Australian feel like they have been duped into saving money that may be put out of their reach for longer than they expected.

If Paul Keating and Bill Kelty have their way, the access age for superannuation funds won’t change, and Aussies will be able to tap into their savings before they reach retirement age. But Ken Henry has another idea. This is one topic we can’t afford to ignore.