Weekly tips & deals to lighten the strain on your wallet

WEEKLY WALLET WINS

Rate cut woes as inflation rises

Save up to $499 on telco plans 

Does Jetstar's new points plan add up?

Term deposit tips and traps

Buyer beware: Black Friday warning

Want a refurbished phone? Read this 

How much is one phone call worth? Back in the ‘olden days’ (that’s what my kids call it 🙄), mobile phone providers charged by the minute, but now the equation is in reverse. It’s all about how much money you can make on that call, which, according to Wallet Wins reader, Joe, is a cool $500. That’s how much he saved by haggling with his insurer, which, assuming it was about a 15-minute phone call, is time well spent.

‘Tis the season for savings with Black Friday sales already in full force, but is this just a fast-track program to a Christmas debt hangover? Potentially yes but not if you shop smart. Here’s how to nail the sales:

1) Make a list of what you need.

2) Set a budget and keep a tally every time you buy.

3) Do a price check. Just because something is 50% off, doesn’t necessarily make it the lowest price.

4) Ignore the clock. Sit on any purchases over $100 for 24 hours.

5) Make a mistake? Send it back.

Most stores have decent change of mind policies, especially in the silly season, so keep the tags on and the boxes close to hand until you’re certain that frozen drink maker is worth the credit card blow out you can see coming down the line in January (it’s not).

Got a wallet win or burning question? Send it to me this week at sally@canstar.com.au  

We break down the key differences so you can compare these two popular ways to grow your money.

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Rising inflation has crushed cash rate cut hopes for next year and is already signalling further hikes to fixed home loan rates in the weeks ahead.

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Is credit card insurance as good as regular travel insurance?

Credit card travel insurance can often be on par with regular insurance but you’ll want to go through the inclusions and exclusions to make sure it's enough cover for your trip. You may also need to activate the policy, which, for Westpac and NAB, can be as simple as booking at least $500 worth of your travel on the card, alongside a return ticket, whereas for CBA, the $500 spend applies but you’ll also need to activate your insurance via the app, website or by calling the bank’s insurer. Finally, check for age limits but also make sure your card actually offers free travel insurance. It's usually restricted to the fancy, high annual fee cards, which doesn’t exactly make it ‘free’ insurance after all. 

40-year mortgages – a matter of great interest 

Donald Trump made headlines with his suggestion of a 50-year mortgage, but here in Australia some lenders already offer 40-year mortgages. Are they a good idea? Not if you don’t like the idea of paying your bank hundreds of thousands of dollars extra, well into your 70s. A 40-year mortgage can reduce your minimum monthly repayments at the start, but because you’re paying your mortgage off for an extra 10 years, on a $600K debt you could end up paying an extra $260K 😱. The even bigger problem in my mind is that a 40-year mortgage could potentially give you access to amounts that you really don’t have the capacity to take on. APRA sees these loans as incredibly risky. As do the big banks. In fact, just seven lenders on the Canstar database offer them.

Should I buy a UV torch to check whether my cash is fake?

The short answer is, probably not, unless you need a new party trick, but it’s nice to know if you shine one on a $50 note in your wallet, something SHOULD light up under a UV spotlight. While there have been a number of reports about the rise of fake cash circulating, from NSW’s Hunter Valley to regional South Australia, chances are that any cash you get from the ATM or a bank branch has already been checked by the bank itself or cash transit companies like Armaguard. In fact, the RBA Governor says the chances of encountering a fake note is about 1 in 165,000, so if you do find one, let us (and, more importantly, the police) know. Here’s a guide on how to check your notes, even if you don’t have a UV torch.