You’re the boss: take charge of your banking

WITH Michelle BALTAZAR

Editor-in-Chief • Money magazine

Here are seven ways you can take control of your finances – and reap the benefits – in 2023.

1. Change your password

Security experts recommend changing your password on your online banking account at least four times a year.

Is it a chore? Absolutely. Is it worth it? Yes.

Banking scams reached new heights last year and all it took was a bunch of cybercriminals getting hold of your sensitive data through social media or through online sites you may have visited.

This could be the year when you use a password manager or a system that allows you to update your passwords more frequently than you’ve done in previous years.

2. Check out the AFCA website

The Australian Financial Complaints Authority is the go-to organisation to get compensa- tion from a bank that has made a serious financial error or acted inappropriately towards its customers.

It can resolve your complaint before you escalate the matter to court.

Since 2018, it has helped more than 300,000 Aussies get $900 million in compensation and refunds.

Some of the complaints it has resolved include unauthorised transactions, delays in insurance claim handling and denial of insurance claims.

3. Automate payment on your credit card debt

Plastic is fantastic if you can clear your debt on time each month, but with the average credit card debt sitting at around $14,000, it looks like many of us have trouble managing it.

Time to keep the card on ice for 11 months and set up an automated payment until you clear your debt.

Many banks also offer balance transfers with zero interest rates for a set period, which is another way to reduce your banking costs.

4. Re-negotiate your home loan

If you haven’t switched home loans or banks for two years, you are definitely leaving money on the table.

The difference between the interest rates offered by the big four banks can be anywhere between 0.5% and 2%, depending on your creditworthiness.

According to the home loan platform Lendi, a reduction of 0.5% (dropping from 4.3% to 3.8%) in your interest rate on $800,000 could mean a saving of more than $82,000 over a 30-year term.

5. Seek assistance if you’re struggling

More Australians are under mortgage stress due to a string of interest rate hikes.

Those who have been hit by the triple whammy of higher mortgage repayments, job loss and natural disaster (if they were affected by floods or fires) are in for a terrible year, but banks have financial assistance programs for those who are in tough circumstances.

Information on counselling services or relief packages