I would like to wish all our members a very happy and prosperous New Year. We hope you’ve had an opportunity to unwind and spend some time with your family and friends.
The New Year is a great time to start on a fresh note and to think of the goals that will help you achieve your personal and financial well-being.
A good way to stay on track with your finances is to begin by reviewing your current situation, look at what you are paying towards any debts and how much you are saving. In this edition we provide some useful information on how you can take control of your finances and get ahead this year.
At BankVic, we serve those who serve the community, we put people before profits. This year, we have renewed our commitment to first responders, Victoria’s frontline police, health and emergency services personnel; and, as part of this, we recognise just how important it is to work together to build stronger and safer communities. Building trust and creating shared value with our members and the broader community is how we will continue to remain sustainable and relevant.
We are committed to listening and understanding your needs and providing products and services that you really value. We are increasing our investment in our member facing staff as well as on our digital platforms to ensure we can deliver personable and efficient service when and where you need it.
Following our AGM in November, we recently announced changes to the BankVic Board, saying farewell to retiring BankVic Chair Wayne Taylor and Director David Boell. Former Deputy Chair, Marianne Luttick was elected as our very first female Chair and I was elected Deputy Chair.
We are also delighted to welcome our two new Independent Directors, Faith Page and Michael Liu, who bring with them a wealth of executive management and board experience as well as extensive knowledge in financial services, risk, audit and cyber security.
On behalf of the BankVic Board and staff, I would like to thank our retiring Board members, Chairman Wayne Taylor and Director David Boell, for their outstanding contribution and excellent service over the past nine years.
On behalf of the BankVic community we are extremely grateful to them for their leadership and dedication in helping shape BankVic into what it is today.
BankVic was a proud sponsor and supporter of the annual Law Enforcement Torch Run (LETR), held on Monday 3 December. We were honoured to help the Special Olympics athletes and the Victoria Police officers walking alongside them to carry the flame of hope.
LETR aims to raise awareness and understanding of people with disabilities and celebrate their contributions and achievements. It also showcases Victoria Police’s support for those living with disability in our community.
The Torch Run concluded with a cauldron lighting ceremony and cheque presentation to Special Olympics Victoria for the funds raised by LETR throughout the year.
In October, Victoria Police Chief Commissioner Graham Ashton and TPAV Secretary Wayne Gatt completed the Head to Head fundraising walk, a combined 1,000km walk on foot to raise awareness for mental health, as well as much needed funding for former Police members who are unable to access the same level of support as those still in service with Victoria Police.
We were incredibly humbled to have been part of the journey and congratulate both Victoria Police and the Police Association for the tremendous effort. For more information please visit www.headtoheadwalk.org.au
BankVic was a proud sponsor of the 2018 Melbourne Health Celebrating Excellence Awards, held on 23 November to recognise the outstanding commitment, dedication and teamwork of Melbourne Health staff and volunteers.
BankVic CEO Anthony De Fazio was honoured to present The Royal Melbourne Hospital (RMH) and North Western Mental Health Excellence in Allied Health Award to the RMH Musculoskeletal Physiotherapy Team, for their exemplary work in the Victorian health sector.
We congratulate all of the nominees and winners of the night.
All too often, we are caught in a trap of applying for a credit card or personal loan - with the best intention to utilise this for short to medium term purchases, but then other priorities and unexpected expenses and life events get in the way of repaying that debt in a timely manner, meaning we never really get back on top of managing our commitments.
This scenario is all too real for so many people, from all walks of life. Before we know it, these repayments can stack up, interest charges become higher than expected and managing multiple debt accounts can mean we incur higher interest charges and unwanted fees related to late or missed payments. Even the best intentions can fall by the wayside.
A strong debt consolidation strategy can help to bundle multiple high interest charging accounts together into one account, usually with a much lower interest rate and a set timeframe to repay the debt in full.
For many, getting back in control of mounting and multiple debts can provide you with a refreshed sense of freedom when it comes to managing your finances, but also free up additional ongoing cash flow to either start or restart a regular savings goal to further strengthen your financial future.
Speaking to your financial institution or financial adviser is the best first step to review your current debt situation and seek recommendations around options to consolidate and improve your financial position.
The sooner you get started on your debt consolidation strategy, the sooner you will start to reduce high interest charges, drop fees on late or missed payments, and potentially free up cash flow to assist with savings or other goals.
Credit card accounts in particular can charge in excess of 20%pa interest, and are a revolving line of credit. This means, by making your minimum required payment only could result in your debt never actually being paid out in full, as you still have access to redraw on any funds repaid.
As an example, a credit card balance of $5,000, at an interest rate of 15%pa, making minimum monthly payments only, could in fact take you over 24 years to pay off in full. By restructuring this into a fixed term personal loan, say over a 5 year term, you have the certainty that at the end of your much shorter loan term, your debt is repaid in full and there is no ongoing commitment beyond that point.
Below is an example of how debt consolidation can help simplify your finances and improve your cash flow, whilst repaying your debt in a fixed timeframe.
Current debt state
||Minimum monthly payment
|Credit Card 1
||$300 (Principal & Interest)
|Credit Card 2
||$270 (Principal & Interest)
||$270 (Principal & Interest)
Debt consolidation state
||$637 ($293 per fortnight)*
(Principal & Interest)
*Personal Loan payments are based on a loan term of 5 years.
This is a net monthly saving of $203 per month, simply by restructuring your debts, and reducing interest charges. The other big advantage of this scenario is that within 5 years, all pre-existing debts will be paid out in full.
Under the current structure, the credit card debts would be revolving, which means that the balance of the card will not reduce unless you make additional payments, and when it is, many people risk drawing that back out and continuing with bad habits.
So, why consolidate debts?
The main advantages of reviewing your debts for consolidation are:
If you’ve been thinking of getting your finances back on track, BankVic are here to help. Visit bankvic.com.au/takecontrol, call 13 63 73 or drop into a branch to discuss your options of managing your debt. Without the stress!
To ensure the security of your cards and peace of mind while travelling overseas, it’s always a good idea to notify us of your travel.
Simply complete our online form before you head off or call us on 13 63 73 option 3 (8am - 7pm Monday to Friday or 9am - 12 noon Saturday) to provide the following information:
More information on what else to consider before you leave is available here.
1. First Home Buyer Package (FHBP) $2,500 BankVic Grant is offered to the first 200 eligible members. You will need to settle your BankVic First Home Buyer package loan by 28 February 2019. First Home Buyer Package loan rate effective 25 October 2017 for new borrowers. See FHBP Terms & Conditions at bankvic.com.au/firsthome-terms. 2. Base Variable rate is effective 2 Oct 2018 for new borrowers only. Minimum loan amount $120,000. Comparison rates for home loans are calculated on a $150,000 loan over 25 years based on monthly repayments. 3. Car Loan rates are subject to change at any time. Minimum loan amount: $10,000. Comparison rate has been calculated for a secured new or used car loan for an amount of $30,000 over a term of 5 years. 4. Visa Silver Credit Card rates are subject to change at any time. Introductory rate is fixed for first six months and is also available on balance transfers. Interest rates quoted are current at the time of publication and subject to change. 5. 3 to 60 month terms, minimum deposit $5,000. Interest is calculated daily and credited annually and on maturity. Available rates are effective 17 Aug 2018 and subject to change at any time. Interest rates are fixed for the term of the deposit selected. Available rates vary according to the term of deposit selected and the amount of deposit. 6. Bonus Saver rates are variable and effective 1 August 2018 and subject to change at any time. Interest is calculated daily and credited monthly. Deposit a minimum of $100 per calendar month, with no withdrawals and we‘ll reward you with bonus interest. Bonus interest rate is capped at a maximum balance of $5,000,000. Standard rate is 0.05% pa, Bonus rate is 2.35% pa. 7. Personal Loan rates are effective 9 Oct 2018 and subject to change at any time. Comparison rate for the personal loan (unsecured) has been calculated on an unsecured loan amount of $10,000 over a term of 3 years. Comparison rate for the personal loan(secured) has been calculated on a secured loan amount of $10,000 over a term of 3 years. COMPARISON RATE WARNING: These comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result ina different comparison rate. All loans are subject to BankVic’s credit criteria. Terms and conditions, fees and charges may apply. Information on terms & conditions, interest rates and fees & charges applying to our products and services is available upon application or request. This advice is general, so it may not be right for you. Before acting on the advice you should consider whether the advice is appropriate for you. Before you make any decision to acquire any product or service you should obtain and consider the relevant Product Disclosure Statement available from our website, any branch or by calling us on 13 63 73. 01.19. 6777bv.
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