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Tuesday, 4 October 2005
Despite rocketing fuel prices, Aussies are reluctant to leave the car at home to save money, preferring to use shop-a-dockets, forgo their morning coffee, or switch to smart financial products, the 2005 National Australia Bank (NAB) Discretionary Spending Study has found.
NAB General Manager Cards and Personal Loans, Mr Andrew Maitland, said the study found Aussies are making savvy financial choices so they can keep the luxuries they want.
Conducted by D&M Research for NAB, the study surveyed 500 people across NSW/ACT, Victoria and Queensland.
Asked what they'd be prepared to do to save $150*, respondents' Top 5 choices were:
- Use shop-a-dockets (75%)
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Put money in high interest savings account (69%)
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Switch to a low rate credit card (64%)
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Give up morning coffee (64%)
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Buy no-name groceries (62%)
Survey respondents were least prepared to leave the car at home (34%), take public transport (37%), dye their own hair (44%) or ban takeaway (46%) to save $150.
The survey comes as the NAB launches the National Low Rate Visa Card, which includes a 10.75% per annum on purchases, 16.65% on cash advances, has up to 55 days interest free days on purchases and an annual card fee of $49.
Mr Maitland said the survey confirmed that Aussies were savings smart, and had taken to innovative financial products so they didn't have to give up activities like buying takeaway or having a night out.
"Two out of three consumers were prepared to switch to a low rate credit card to save $150 a year, a scenario that could be possible by trading your credit card for the National Low Rate Visa Card. So being in the know means you don't have to give up your favourite magazine, or your morning coffee to save money," he said.
Mr Maitland said that the National Low Rate Visa Card had a great low rate for purchases, and for those that wanted to use it for cash advances, the interest rate was the same as NAB's standard credit card products.
The 2005 NAB Discretionary Spending Study:
" Queenslanders are more prepared to brew their own beer (36%) than those in Victoria (21%) or NSW/ACT (20%).
" Queenslanders are more prepared to use shop-a-dockets (81%) than those in NSW/ACT (76%) or Victoria (68%).
" Those in NSW are least prepared to dye their own hair (39%) or give up their coffee (61%).
" Women are generally prepared to sacrifice more to save money than men.
" Asked how they'd spend the $150, more respondents said they would pay off debt or bill or save it (39% collectively), rather than spend the money on family (15%), buy something they needed (13%), or have a day or night out (11%).
About the Study:
The 2005 National Australia Bank Discretionary Spending Study was conducted by D&M Research in September 2005 for the National Australia Bank. Participants were asked about their discretionary spending and saving preferences. The study surveyed 506 credit card holders between 25 and 55 years of age in Queensland, New South Wales, the Australian Capital Territory and Victoria and with a minimum Card Limit of $5,000. While the majority of respondents had credit card limits over $10,000, 42% have an outstanding balance below $2,000. Sampling error is placed at +/-4.35 per cent.
A Fact Sheet with additional research data is available.
*The NAB Discretionary Spending Study focused on attitudes to spending and saving $150. Moving from a credit card that has an interest rate of 17% p.a. to the National Low Rate Visa Card, which has an interest rate of 10.75% p.a. on purchases, where the consumer has an average interest bearing balance of $2500 throughout a one-year period, will incur $150 less interest. This is for illustrative purposes only and assumes that the balance results from purchases and not cash advances. It also assumes the same customer behaviour and that interest rates do not change in the period. It does not take into account annual card fee or any other fees which may apply to the credit card account.
National Australia Bank Low Rate Visa Card
| Annual card fee |
$49 |
| Interest rate (purchases) |
10.75% p.a |
| Interest rate (case advances) |
16.65% p.a |
| Interest free days on purchases |
55 |
| Balance Transfer Special Offer |
0% p.a. for up to 6 months on non-NAB store or credit card balances that are transferred at the time of application. Ongoing interest rate following the promotional period (up to 6 months from opening) is the National Low Rate Visa Card (Cash Advance) Indicator Rate, currently 16.65% p.a. (as at 1 October 2005) and is subject to change. |
Broadcast quality audio news grabs with NAB General Manager Cards and Personal Loans, Mr Andrew Maitland, will be available for download free of charge at 4.45pm today from www.mediagame.com.au. If you are not already a subscriber, you can do so instantly on the site.
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