Australians are increasingly forgoing credit cards in a bid to reduce debts, new research suggests.

An ING DIRECT financial well-being index has found that the average Australian household cut its credit card debt by 14 per cent in the final quarter of last year, news.com.au reported.

The result came as it was shown that the average household had cut the number of cards it holds from 2.1 in the third quarter of 2010 to 1.9 in the fourth quarter.

It was also shown that Victoria had been the most active state in cutting credit card debt, with average balances falling by 25 per cent.

According to news.com.au, the trend was attributed to consumer fears at the end of the year after Novembers official interest rate rise. Read full article…

There are many reasons to opt out of a credit card account, including, but not limited to, heightened interest rates, excessive late penalties, unfair policies, hidden fees and overall dissatisfaction with the issuer’s support and service. With interest rates being as high as 29% on some accounts, and the universal default clause allowing for excessive interest rate penalties, it’s relatively easy to become infuriated with a credit card company and cancel an account on the spur of the moment. Opting out of the credit card account in the wrong way, however, could result in even more financial troubles, such as higher interest rates on future credit cards. To

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Tap N Go credit and debit card readers, which have started to be rolled out in stores across Australia, offer shoppers speed and convenience, but security concerns remain.

That is according to consumer advocate group Choice, which has released its review of some of the latest trends in hi-tech shopping.

It noted that Tap N Go technology makes transactions faster, can potentially lessen queuing and may also help reduce incidents of consumers leaving cards behind as the card never leaves their hand.

However, the group also pointed to concerns about security as no identification is required when the readers are used.

“There are undeniable benefits to these cards, tech heads will love them, but there are others who have concerns about how they make spending easier,” commented Choice spokesperson Ingrid Just.

Consumers aiming to boost their spending power could opt to compare credit cards and other money products in search of the best options. Read full article…

Issuing employee credit cards is an excellent way to alleviate and allocate the fiscal responsibilities of managing and operating a business. Many small to medium-size businesses have a moderate employee base, with supervisors, managers, and administrators often needing access to funds for supplies and company investments. In the interests of time and productivity, many business owners choose to issue credit cards to their employees, which are all linked to a single business credit card account. Employee credit cards offer a number of benefits, including centralized expenditure tracking, fewer financial administrative duties, and simplified tax accounting.

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The FTC issued another report to Congress last week detailing progress made regarding a forthcoming study of credit report errors.

The study will involve roughly 1,000 randomly selected consumers throughout the nation.

Each will be paired with a so-called expert, who will review their credit reports with all 3 major credit bureaus to help identify potential errors.

Participants will be encouraged to dispute any errors on their credit reports that could affect their credit standing, and those with errors will be sent to Fico (formerly Fair Isaac) for rescoring.

The study aims to determine the proportion of consumers with one or more material errors on their credit reports.

It will measure their frequency and impact on a consumer’s credit score.

Errors will be categorized by type and severity in terms of credit harm and if deemed appropriate, the report may also include recommendations for legislative or administrative action.

Of course, it’s not due until December 2012, so until then you’re on your own.

My guess is that the most common and devastating type of credit report error will be medical collections.

Medical collections seem to be very common and detrimental, leaving even the most creditworthy consumer with a bad credit score.

If you think you’ve got an error on your credit report, it’s simple to execute a credit report dispute online, so don’t hesitate.

They take time, so be sure to act early if anything seems awry.