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Restaurant sparks outrage for "ridiculous" fee

As inflation rates continue to rise it is not surprising that restaurants are charging extra fees, but one disgruntled customer was particularly shocked to see this "ridiculous" fee on their bill. The customer, who dined at restaurant and cocktail bar in Georgia, USA shamed the restaurant for charging their customers a $20 fee for “live band entertainment”. They shared their complaints on Reddit with a copy of their receipt and an unexpected fee at the bottom which read: “Two Live Band Entertainment Fee — $20”. Most people in the comments were equally annoyed and called the fee "ridiculous". “This is one of those leave money on the table, hand the waiter a tip and leave, sorry but if I didn’t order it, I’m not paying for it,” one wrote. “Great way to not have repeat customers,” said another. “This will backfire for them, just be honest and upfront," a third added. Other commenters were less sympathetic and did not understand why the customer was complaining when it looked like they could afford it. “When you’re paying seven dollars for a bottle of water, you really don’t get to complain about ‘unexpected costs.’ You knew what you signed up for," one commenter wrote. “Imagine a live band getting paid, huh,” another added. “They’re buying $7 bottles of water, they can probably afford it,” added a third. Image: Getty/ Reddit

Money & Banking

"Proud to pay more": The billionaires who want to pay more tax

Over 250 millionaires and billionaires have issued an <a href="https://proudtopaymore.org/" target="_blank" rel="noopener">open letter</a> to global leaders encouraging them to implement wealth taxes to combat the cost-of-living crisis. This comes just as a report by the Oxfam Charity revealed that the global wealth of billionaires have only grown in the last three years despite inflation. The open letter, signed by super-rich individuals from 17 countries, includes signatories like Abigail Disney, the grand-niece of Walt Disney, Succession actor Brian Cox, and American philanthropist and Rockefeller family heir Valerie Rockefeller. They said that they would be "proud to pay more taxes" in order to address the inequality. "Elected leaders must tax us, the super rich," the letter read. "This will not fundamentally alter our standard of living, nor deprive our children, nor harm our nations' economic growth. "But it will turn extreme and unproductive private wealth into an investment for our common democratic future." Austrian heir Marlene Engelhorn is also among the voices demanding that they pay more in taxes. "I've inherited a fortune and therefore power, without having done anything for it. And the state doesn't even want taxes on it," Engelhorn, who inherited millions from her family who founded chemical giant BASF, said. The letter was released just as global leaders gather in Davos, Switzerland for the World Economic Forum. Abigail Disney, whose net-worth is measured at more than $100 million, said that lawmakers need to come together to make a meaningful economic and social change. "There's too much at stake for us all to wait for the ultra rich to grow a conscience and voluntarily change their ways," she said. "For that reason, lawmakers must step in and tax extreme wealth, along with the variety of environmentally destructive habits of the world's richest." A recent <a href="https://static1.squarespace.com/static/63fe48c7e864f3729e4f9287/t/6596bfb943707b56d11f1296/1704378297933/G20+Survey+of+those+with+More+than+%241+million+on+Attitudes+to+Extreme+Wealth+and+Taxing+the+Super+Rich.pdf" target="_blank" rel="noopener">survey</a> of almost 2400 millionaires found that 74 per cent of them supported the introduction of a wealth tax to fund improved public services and deal with the cost-of-living crisis. The open letter also said that one-off donations and philanthropy "cannot redress the current colossal imbalance" of societal wealth. "We need our governments and our leaders to lead," the letter said. "The true measure of a society can be found, not just in how it treats its most vulnerable, but in what it asks of its wealthiest members." Images: Getty

Money & Banking

The cost-of-living crisis is hitting hard. Here are 3 ways to soften the blow

<a href="https://theconversation.com/profiles/ama-samarasinghe-1386754">Ama Samarasinghe</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> As our wallets feel the strain from the cost-of-living crisis, many of us are looking for ways to soften the blow. While everyone’s circumstances are different, and ideally you should seek help from an accredited financial adviser, there are some tried and true ways to work out where all your money is going and why. Here are three practical tips to reduce the impact of the cost-of-living increases, and stretch every hard-earned dollar. <h2>1. Hunt for a better loan rate</h2> For many households, the biggest hit comes from the mortgage, so start there. Even a modest 0.5% reduction can translate into substantial savings. Call your bank today and just ask for rate reduction. If the answer is no, consider shopping around for a different lender. Your loyalty to your current lender might be costing you more than you realise. Banks often reserve their most attractive rates for new customers, leaving long-time customers paying higher-than-necessary interest. Even if your bank does agree to a rate reduction, explore the market anyway. There is a range of free rate-comparison websites, or you can directly check individual bank websites. If you find a lender offering a better rate, you might consider calling the competing bank to ask about switching your mortgage to them. Or, you might seek assistance from a mortgage broker, who can guide you through the process of securing a better deal (just remember they often take <a href="https://www.canstar.com.au/home-loans/mortgage-brokers-fees/">commissions</a> from lenders). Tread carefully and factor in any exit fees or charges from your current lender. Refinancing isn’t without risk, so a thorough cost-benefit analysis is important before making the switch. Also consider the value of features such as <a href="https://moneysmart.gov.au/glossary/offset-account">offset accounts</a>. An offset account, linked to your home loan, allows you to deposit money such as your salary and savings. This money is then “<a href="https://www.rba.gov.au/publications/smp/2015/aug/box-e-offset-account-balances-and-housing-credit.html">offset</a>” against your home loan balance. That means you only pay interest on the outstanding amount (the loan minus whatever salary and savings you put in the offset). This can accelerate loan repayment and reduce interest costs. Keep in mind that offset accounts are typically only available with variable interest rates. Offset accounts work best if you have considerable savings to put into the offset account that outweigh the additional fees and charges attached to offset accounts. <h2>2. Trim your expenses and uncover hidden savings</h2> It’s time to become a budget detective, identifying and cutting down on non-essential costs that might be quietly draining your wallet. Take a close look at those recurring memberships and subscriptions. How often do you actually use that gym membership or streaming service? Many banking apps have handy spending tracking features to help you set realistic budget goals for each spending category. According to the <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/selected-living-cost-indexes-australia/latest-release">Australian Bureau of Statistics</a>, insurance and financial services are among the top risers in living cost indexes (which measure the price change of goods and services and its effect on living expenses). So search comparison websites for better insurance premiums. Australia’s insurance market is competitive, and you can often get discounts by bundling your insurances together (for example, having your home and contents insurance with the same company that also provides your car insurance). However, don’t shy away from exploring different insurers for potentially better value. Don’t overlook energy costs, either. Use comparison websites like <a href="https://www.energymadeeasy.gov.au/">Energy Made Easy</a> (or, if you’re in Victoria, the <a href="https://compare.energy.vic.gov.au/">Victorian Energy Compare</a> site) to find more cost-effective energy plans. Stay updated on rebates and concessions via the federal government’s <a href="https://energy.gov.au">Energy.gov.au</a> site, to ensure you’re maximising your entitlements. Use less energy, if you can. Small adjustments can make a significant dent in your bills. And for fuel costs, find websites and applications that allow you to lock in the lowest prices in your area. If you’re renting, ask yourself whether moving to a cheaper suburb or a cheaper home is an option. Many people use cashback sites like Cashrewards and ShopBack to accrue cashback incentives. <h2>3. Maximise returns and tackle high-interest debts</h2> While rising interest rates might make your mortgage climb, it also means high interest on your savings. Consider exploring high-yield savings accounts; with current interest rates, you could potentially earn around 5.5% with a bank savings account. Many people set up recurring transfers to help them stick to savings goals, increase deposits and maximise interest earnings. For those wrestling with high-interest debts such as credit cards or personal loans, prioritise settling outstanding balances to minimise interest payments. It can be hard to escape the long-term repercussions (such as a <a href="https://theconversation.com/payday-lending-trap-requires-a-credit-supply-rethink-39311">poor credit score</a>) of defaulting on <a href="https://www.sydney.edu.au/news-opinion/news/2022/09/21/researchers-uncover--pecking-order-of-defaults--as-belts-tighten.html">high-interest loans</a>. And approach buy-now, pay-later services with extreme caution. They may seem tempting but the <a href="https://onlinelibrary.wiley.com/doi/10.1111/acfi.13100">debts can quickly add up</a>. And if you need more help, contact the government’s free National Debt Helpline on 1800 007 007.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/218118/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ama-samarasinghe-1386754">Ama Samarasinghe</a>, Lecturer, Financial Planning and Tax, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-cost-of-living-crisis-is-hitting-hard-here-are-3-ways-to-soften-the-blow-218118">original article</a>.

Money & Banking

What is the ‘sunk cost fallacy’? Is it ever a good thing?

<a href="https://theconversation.com/profiles/aaron-nicholas-1487960">Aaron Nicholas</a>, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a> Have you ever encountered a subpar hotel breakfast while on holiday? You don’t really like the food choices on offer, but since you already paid for the meal as part of your booking, you force yourself to eat something anyway rather than go down the road to a cafe. <a href="https://www.sciencedirect.com/science/article/pii/0167268180900517">Economists</a> and <a href="https://www.sciencedirect.com/science/article/pii/0749597885900494">social scientists</a> argue that such behaviour can happen due to the “sunk cost fallacy” – an inability to ignore costs that have already been spent and can’t be recovered. In the hotel breakfast example, the sunk cost is the price you paid for the hotel package: at the time of deciding where to eat breakfast, such costs are unrecoverable and should therefore be ignored. Similar examples range from justifying finishing a banal, half-read book (or half-watched TV series) based on prior time already “invested” in the activity, to being less likely to quit exclusive groups such as sororities and sporting clubs the more <a href="https://psycnet.apa.org/record/1960-02853-001">effort it took to complete the initiation ritual</a>. While these behaviours are not rational, they’re all too common, so it helps to be aware of this tendency. In some circumstances, you might even use it for your benefit. <h2>Sunk costs can affect high-stakes decisions</h2> While the examples above may seem relatively trivial, they show how common the sunk cost fallacy is. And it can affect decisions with much higher stakes in our lives. Imagine that Bob previously bought a house for $1 million. Subsequently, there’s a nationwide housing market crash. All houses are now cheaper by 20% and Bob can only sell his house for $800,000. Bob’s been thinking of upgrading to a bigger house (and they are now cheaper!), but will need to sell his existing house to have funds for a downpayment. However, he refuses to upgrade because he perceives a loss of $200,000 relative to the original price he paid of $1 million. Bob is committing the sunk cost fallacy by letting the original price influence his decision making – only the house’s current and projected price should matter. Bob might be acting irrationally, but he’s only human. Part of the reason we may find it difficult to ignore such losses is because losses are psychologically more salient relative to gains – this is known as <a href="https://psycnet.apa.org/record/1985-05780-001">loss aversion</a>. While most of the evidence for the sunk cost fallacy comes from <a href="https://link.springer.com/article/10.1007/s40685-014-0014-8">individual decisions</a>, it may also influence the decisions of groups. In fact, it is sometimes referred to as the <a href="https://www.nature.com/articles/262131a0">Concord fallacy</a>, because the French and British governments continued funding the doomed supersonic airliner long after it was likely it would not be commercially viable. Another example is drawn-out armed conflict that involves a large loss of lives for the losing side. Some may think it impossible to capitulate because the casualties will have “died in vain”. <h2>Knowing about sunk costs can help you</h2> If you find yourself justifying behaviour due to costs you’ve paid in the past rather than circumstances of the present, or predictions of the future, it’s worth checking yourself. Identifying sunk costs allows you to cut your losses early and move on, rather than perpetuating larger losses. This is apparent in the housing example: the larger the crash, the cheaper the bigger house; and yet the larger the crash, the greater the perceived loss from selling the existing house. Hence, the greater the loss in opportunity inflicted by the sunk cost fallacy. If you find it difficult to overcome the sunk cost fallacy, it may help to delegate such decisions to others. This may include the decision of whether to <a href="https://direct.mit.edu/rest/article-abstract/93/1/193/57894/The-Flat-Rate-Pricing-Paradox-Conflicting-Effects">go to a buffet</a> or subscribe to Netflix, with the latter potentially being a double whammy: one may feel compelled to binge-watch due to the flat fee structure and, as mentioned earlier, to finish mediocre series once halfway through. <h2>Use sunk costs to your advantage</h2> A second, less obvious benefit is actively using the fallacy to your advantage. For example, many gym memberships require upfront payments regardless of how much you use the facilities. If you find it hard to ignore sunk costs, choosing gym memberships that have large upfront fees and minimal pay-per-usage fees may be a way to <a href="https://pubsonline.informs.org/doi/abs/10.1287/mnsc.2018.3032">commit yourself</a> to a regular gym habit. This can also apply to other activities that involve short-term pain for long-term gain – for example, paying for an online course will make you more likely to stick with it than if you found a free course. But be warned, this doesn’t work for everything: it seems that spending wildly on a <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/ecin.12206">wedding ceremony or engagement ring</a> doesn’t have a “sunk cost” effect – it fails to increase the likelihood of staying married.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/217798/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/aaron-nicholas-1487960">Aaron Nicholas</a>, Senior Lecturer in Economics, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-is-the-sunk-cost-fallacy-is-it-ever-a-good-thing-217798">original article</a>.

Money & Banking

Downsizing cost trap awaits retirees – five reasons to be wary

<a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> It’s time to debunk the myth of zero housing costs in retirement if we want to understand why retirees resist downsizing. Retirees have at least five reasons to be wary of the costs of downsizing. Retirees living in middle-ring suburbs face frequent calls to downsize into apartments to free up larger allotments in these suburbs for redevelopment. Retirees who fail to downsize into smaller units and apartments are viewed as being a greedy, baby-boomer elite, stealing financial security from younger generations. It also makes sense to policymakers for retirees to move into less spacious accommodation and make way for high-density housing. Housing think-tank AHURI <a href="http://www.ahuri.edu.au/__data/assets/pdf_file/0021/14079/AHURI_Final_Report_No_286_Australian-demographic-trends-and-implications-for-housing-assistance-programs.pdf">fosters this view</a>. Yet seniors remain resistant to moving, in part because of the ongoing costs they would face. The concept of zero housing costs in retirement is based on a 1940s view of a well-maintained, single dwelling on a single allotment of land where the mortgage has been paid off. This concept is incompatible with medium- and high-density housing and refusing to acknowledge ongoing housing costs may cause significant poverty for retirees. <h2>Reason 1 – upfront moving costs are high</h2> When a house is sold the owner receives the sale funds minus the real estate and legal fees. When the same person then buys a different property to live in, they pay legal fees plus stamp duty. For cities such as Melbourne and Sydney, these costs are likely to exceed A$70,000. These high transfer costs may mean it is not cost-effective <a href="https://theconversation.com/why-older-australians-dont-downsize-and-the-limits-to-what-the-government-can-do-about-it-76931">for the person to move</a>. <h2>Reason 2 – levies are high</h2> Because apartment owners pay body corporate levies, people often assume this is just the same as periodic payment of rates, water, insurance and other costs. It is not. Fees remissions for low-income retirees for rates, power, insurance and water are difficult to apply within a body corporate environment. As a consequence, these are usually not applied to owners of apartments. The costs of maintaining essential services, such as mandatory fire-alarm testing, yearly engineering certification, lift and air-conditioning inspections, significantly increase ownership costs. When additional services are supplied, such as swimming pools, gyms and rooftop gardens, these also require periodic inspections. Garbage collection, cleaning, gardening, concierge and strata management services also <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&eprintid=23322">must be paid</a>. Owners of standard suburban homes choose whether they want these services, with those on fixed incomes going without them. Annual levies for apartment buildings vary, but expect to pay between $10,000 and $15,000. They <a href="https://www.strata.community/understandingstrata/faqs">may be more than this</a>. <h2>Reason 3 – costs of maintenance</h2> <figure class="align-right "><figcaption></figcaption></figure> Apartments are often sold as a maintenance-free solution for older people. The maintenance is not free. It needs to be paid for. Maintenance costs are higher in an apartment than a standard suburban home because there are more items and services to be maintained and fixed. Lifts and air conditioning need periodic servicing and fixing. This is in addition to the mandatory inspections listed above. <h2>Reason 4 – loss of financial security</h2> It is a mistaken belief that the maintenance costs that form part of the body corporate fee include periodic property upgrades. This relates to items that are owned collectively with other apartment owners. Major servicing at the ten-year mark and usually each five-to-seven years after that include painting, floor-covering replacement, and lift and air-conditioning repair or replacement. Major upgrades may also include garden redesign or other external building enhancement including <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&eprintid=23315">environmental upgrades</a>. All owners share these upgrade costs. Costs of upgrading the inside of an apartment (a bathroom disability upgrade, for example) are additional again. Once the body corporate committee members pledge funds towards an upgrade, all owners are required to raise their share of the funds, whether they can afford it or not. Communal choice outweighs an individual owner’s need to delay upgrade costs. Owners who buy apartments that are part of a body corporate effectively lose control of their future financial decisions. <h2>Reason 5 – loss of security of tenure</h2> Loss of security of tenure is usually associated with renters. However, the recent introduction of <a href="http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0009/25965/Termination_of_a_strata_scheme_by_RG.pdf">termination legislation</a> in New South Wales gives other owners the right to vote to terminate a strata title scheme. When this occurs, all owners, including reluctant owners of apartments within that scheme, are compelled to sell. There are valid reasons why termination legislation is desirable, as many older apartment complexes are reaching the end of their useful life. Even so, as termination legislation is rolled out across the states, owner- occupiers effectively lose control of how long they will own a property for. They no longer have security of tenure, which means retirees may face an uncertain housing future in their old age. <h2>Downsizing raises poverty risks</h2> Because current data sets do not adequately take account of ongoing costs associated with apartment living, the effect of downsizing on individual households is masked. Downsizing retirees into the apartment sector creates ongoing financial stress for older people. Creating <a href="https://theconversation.com/it-will-take-more-than-piecemeal-reforms-to-convince-older-australians-to-downsize-51043">tax incentives to move</a> does not tackle these ongoing costs. Centrelink payments for of <a href="https://www.humanservices.gov.au/customer/services/centrelink/age-pension">$404 per week</a> are well below <a href="http://acoss.wpengine.com/poverty-2/">the poverty line</a>. Yet we expect retirees to willingly downsize and to be able to cede most of their Centrelink payments to cover high body corporate costs. Requiring retirees to downsize for the greater urban good will shift poverty onto retirees who could barely manage in their previously owned standard suburban home. Failing to understand the effect of high ongoing costs associated with apartment living and reinforcing the myth of zero housing costs in retirement will continue to lead to poor policy outcomes.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/80895/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, Property and Housing Management Researcher, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/downsizing-cost-trap-awaits-retirees-five-reasons-to-be-wary-80895">original article</a>.

Retirement Income

Shop around, take lunch, catch the bus. It is possible to ease the squeeze on your budget

<a href="https://theconversation.com/profiles/laura-de-zwaan-180752">Laura de Zwaan</a>, <a href="https://theconversation.com/institutions/griffith-university-828">Griffith University</a> It’s no secret that the cost of living has increased substantially over the last year, with rises of between <a href="https://www.abs.gov.au/media-centre/media-releases/employees-annual-living-costs-highest-record#:%7E:text=%E2%80%9CLiving%20costs%20for%20employee%20households,per%20cent%20was%20in%201986.">7.1 and 9.6 per cent</a> for all households. So what can households do to manage these increases? It might sound simple, but starting with a budget is the best approach. Even if you already have a budget, price increases mean it will need to be updated. For those new to budgeting, it is just a list of your income and expenses. Make sure you match the frequency of these so you are working out your budget over a week, or a fortnight, or a month. There are plenty of budgeting apps and websites that can help, such as the <a href="https://moneysmart.gov.au/budgeting/budget-planner">Moneysmart budget planner</a>. Once your budget is up to date, you can see your financial position. Do you have a surplus of cash – congratulations! You can save that money to help you in an emergency. But what about if you have less income than expenses? You need to work through a process of figuring out where you can cut back. Some expenses are easy to cut back on: <ul> <li> If you have multiple streaming services, drop back to one at a time. Check for any other subscriptions you might be paying for – if you are not using them frequently, now is the time to cancel. You can always resubscribe when money isn’t tight. </li> <li> If you are spending a lot of money on take out or paying for lunch, find cheaper alternatives such as eating at home and packing a lunch using cheaper ingredients. Switch to tap water for normal drinks, and take a travel cup of coffee with you. </li> <li> Check and see if public transport is cheaper for you. If you are using a lot of fuel and paying for parking, public transport could be a better option. </li> <li> Groceries can be a huge cost for families. It is always worth shopping around to not pay full price. Understand unit pricing and buy the products you use when they are on special. It might be necessary to switch to cheaper products. </li> <li> Check if you are paying too much for your utilities like internet, electricity and gas. There are comparison websites you can use, including the <a href="https://www.energymadeeasy.gov.au/">Energy Made Easy</a> website. You can also make simple changes such as turning off lights and using a saucepan lid when boiling water that will reduce your usage. </li> <li> Check other products you might be paying for, such as car, home and health insurance to see if you can save money by switching. Be careful with any life or disability policies. It is best to speak to a financial adviser before changing those as there can be implications for cover. </li> </ul> Other expenses, like housing, can be a lot harder to manage. Rising interest rates have pushed up mortgage repayments for homeowners. Mortgage interest charges have <a href="https://www.abc.net.au/news/2023-05-03/record-high-living-costs-businesses-contracting-interest-rates/102296992">risen by 78.9% over the year</a> to March 2023. For many homeowners, their repayments are unaffordable compared to when they first took out their mortgage. If you are struggling to afford your mortgage, the first step is to talk to your lender as soon as possible. Moneysmart has <a href="https://moneysmart.gov.au/home-loans/problems-paying-your-mortgage">useful information</a> on what to do when you can’t meet your mortgage payments. You may also be able to <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds---what-you-need-to-know/">access some of your superannuation</a> so you don’t lose your home, however bear in mind that this is a temporary solution and uses your retirement savings. Increased demand for rentals has seen average rents across Australia increase by <a href="https://content.corelogic.com.au/l/994732/2023-07-05/z2tcd/994732/1688600749Ly8Iv9wt/202306_CoreLogic_RentalReview_July_2023_FINAL.pdf">27.4% since the COVID pandemic</a>. Supply of rental properties is low, which means many people may not be able to find a suitable alternative if their rent increases and becomes unaffordable. It might be necessary to take on a housemate, or move to a cheaper location (make sure to consider additional costs such as transport). If your circumstances have changed suddenly and you cannot pay your rent, contact your landlord or property manager. If you are paying a lot in credit card or other personal debt repayments such as numerous Afterpay-style accounts, it could be a good idea to speak to a bank about consolidating. This can help move some expensive debt, such as that from credit cards, into lower interest debt and simplify your budgeting as there is only one payment. If debt is making your budget unmanageable, then you can call the <a href="https://ndh.org.au/">National Debt Helpline</a> or for First Nations Australians there is <a href="https://financialrights.org.au/getting-help/mob-strong-debt-help/">Mob Strong Debt Help</a>. A final option could be to increase your income by taking on more work. This can be a good solution, but if you already work full time it might be unsustainable. Two common side hustles to boost income are gig work, such as Uber driving, and multi-level marketing, which is selling goods like Doterra and Herbalife to family and friends. However, both are <a href="https://www.twu.com.au/wp-content/uploads/2023/03/McKell_QLD_Gig-Economy_WEB_SINGLES.pdf">low</a> <a href="https://eprints.qut.edu.au/216593/1/MLM_report_Print.pdf">paid</a> and in most cases you would be better off earning minimum wage as a casual employee.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/210895/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/laura-de-zwaan-180752">Laura de Zwaan</a>, Lecturer, Department of Accounting, Finance and Economics, <a href="https://theconversation.com/institutions/griffith-university-828">Griffith University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/shop-around-take-lunch-catch-the-bus-it-is-possible-to-ease-the-squeeze-on-your-budget-210895">original article</a>.

Money & Banking

The cost of living is biting. Here’s how to spend less on meat and dairy

Food & Wine

King Charles hit hard by cost of living crisis

As the cost of living crisis continues around the world, it seems even those at the very top are not as immune from the financial uncertainty as expected. King Charles and the royal family are the latest hit by the crisis, with the Crown Estate losing half a billion pounds (approx. $950 million AUD) on its London property portfolio after the value of retail space crashed. King Charles was reportedly forced to dip into the royal reserves by £21 million (approx. $40 million AUD) due to overspending by the Palace, while staff have implemented a number of cost-cutting measures across the various royal estates including turning down the heating. Following a year of "unprecedented" royal activity that saw both the death of Queen Elizabeth and the coronation of King Charles, Buckingham Palace's net expenditure grew by more than £5 million this year, to £107.5 million (approx. $203 million AUD) in just a few short months. The spending was used on events such as the Queen Elizabeth II's Platinum Jubilee, the Queen's funeral, preparation for the King's coronation and the joining of two royal households. During a media briefing on Tuesday, Sir Michael Stevens, keeper of the royal family's Sovereign Grant, emphasised that it had been "an exceptional year" for the royal household. He said the financial strain related to a year of "grief, change and celebration, the like of which our nation has not witnessed for seven decades". The historic events, he said, have "inevitably entailed additional burdens on resources" to ensure that they were "delivered safely and smoothly, and that the change of reign was effected as seamlessly as possible at a time of great national and international interest". The Platinum Jubilee cost £700,000 (approx. $1.3 million AUD), while the Queen's funeral cost £1.6 million (approx. $3.5 million AUD). Image credits: Getty Images

Money & Banking

Ready-made foods you should avoid at all costs

<h2>Pasta dishes</h2> Those ready-made spaghetti Bolognese and creamy pasta dishes are comfort foods at their finest, but they’re not the best for your body. Skip the frozen dishes, which tend to be loaded with sodium and fat, and throw your own healthy pasta recipe together, suggests paediatric dietitian Jodi Greebel. Not only is boiling pasta quick and easy, but you also have more control over what goes into the sauce and sides. Load yours up with nutritious veggies and throw in a tin of lentils for a healthier twist on your guilty-pleasure pasta. <h2>Kids’ meals</h2> Parenting is a 24/7 job, and if you cook separate meals for your little ones, sometimes you lack the energy and time. It’s tempting to pop a frozen kids’ meal in the oven and serve dinner 20 minutes later, but that meal probably isn’t something you really want in your child’s belly. “Some meals have more than half the amount of fat a child needs for the whole day,” says Greebel. With just a teensy bit more effort, you can dish up something you can feel confident feeding your child. For standby freezer aisle meals, Greebel recommends baked chicken nuggets with frozen veggies, but fresh food can be just as easy. Pick up a rotisserie chicken to serve with two vegetables – food that will feed not just your children but the adults in the house too. Any leftovers use in tacos for tomorrow night’s meal. <h2>Low-protein veggie burgers</h2> Skipping the traditional cheeseburger for a meatless option can be better for your belly and the planet, but there’s a catch. A lot of people look at all plant-based burgers as healthy protein substitutes, but some are much higher in carbohydrates and fat than protein, says nutrition program creator Ilana Muhlstein. “Protein is important for keeping us full and preventing overeating.” Leave it on the shelf if the nutrition facts say just five grams of protein, and hunt down another veggie patty with ten grams or more, she suggests. <h2>Frozen stir-fries</h2> Frozen meals like stir-fries are loaded with sodium, thanks in part to the sauces they come in. Luckily, a healthier version is just as easy and freezer-friendly. Buy a pack of plain frozen veggies – some stores even sell stir-fry vegetables without the sauce – and throw them in your wok or frying pan with chicken or beef, suggests Greebel. Use just a bit of low-sodium soy or teriyaki sauce to keep the salt to a minimum. <h2>Fried foods</h2> So, how bad are fried foods? Chips and other frozen fried food is tasty, but it shouldn’t be a part of your regular diet. Loaded with sodium and saturated fats, it could increase your risk of heart disease and obesity. Keep some healthier snack options on hand so you’re not tempted by the fried stuff. Throw together a pita pizza instead of frozen pizza, or make chicken tacos. <h2>Two-serving meals</h2> When you’re looking for a quick and healthy single-serving dinner, buyer beware: some frozen foods look reasonable in calories, fat, and sodium at first glance, but they’re actually two servings disguised as one. Double-check the portion size before you dig in to make sure you’re not biting off more than you’d want to chew. Swap the poser out for a single-serving meal, or set half aside for leftovers. Image credit: Shutterstock This article originally appeared on <a href="https://www.readersdigest.co.nz/kitchen-tips/ready-made-foods-you-should-avoid-at-all-costs" target="_blank" rel="noopener">Reader's Digest</a>.

Food & Wine

9 cost-effective ways to warm your home this winter

Sick of hearing about the same old heating methods that never quite do the job? Try these nine unconventional heating hacks. 1. Preheat your pyjamas While you shower, put your pyjamas in the dryer to ensure that you have toasty warm clothing to change into as soon as you leave the warmth of the bathroom. For a slightly more affordable version, wrap your PJs in a hot water bottle or heat bag, not only will it heat your clothes but it will make your bed toasty warm too, just be sure to remove the hot water bottle from your bed before you settle down to sleep for the night. 2. Join the fan club It might seem counter-productive but turning a fan on at the lowest setting will help circulate heat throughout the room. Don't knock it until you try it! 3. Hottie in the car Dreading your chilly morning commute to work? Make your early start a little easier to stomach by putting hand warmers into your pockets or heat up a hot water bottle with warm water or a heat bag and put it on your lap as you drive. 4. Utilise bubble wrap For those whose home insulation isn't up to scratch, a budget-friendly trick is to use bubble wrap to insulate your windows from the inside. To create the DIY double glazing, simply get some bubble wrap and use a product like blue-tac to hold it in place on your windows. 5. Make use of your curtains Keep your house warmer for longer by making use of your curtains and the limited winter sun. To do this, open all of your curtains on a sunny morning and allow the house to soak up as much heat as possible during the day. As night falls, let your curtains act as an additional piece of insulation by closing them at dusk and trapping heat inside the house. 6. Cuddle your pet When in doubt, a great way to stay warm on a cold night is by sharing body heat. While snuggling up with your partner might make you a little bit warmer, cuddling a furry pet will heat you up a lot faster. The key to success with this hack is to cuddle up with the fluffiest animal possible, so try and find a friend with a Ragdoll cat or a St Bernard. 7. Go camping… indoors Just because it's winter doesn't mean you can't go camping... well, as long as it's in the living room. For a warm night's sleep, fill up a tent with pillows and blankets, make sure it's all zipped up and settle down for the night. The enclosed space will heat up by trapping the air and using your body warmth to make the space nice and cosy. 8. Redecorate Positioning your favourite seat in front of the heater might feel great when you're sitting in it, but when you put furniture too close to a heating source you're actually stopping the hot air from circulating throughout the rest of the room. Fix this problem by repositioning your furniture and allowing the hot air to fill the whole room, rather than just absorbing it all up in one spot. 9. Get in the kitchen There's nothing like a good soup or a roast to make you feel better on a cold winter’s night. Cooking is an easy way to warm up the air in your home, while also providing you with something warm to eat at the same time. Republished with permission of <a href="http://www.stuff.co.nz/" target="_blank" rel="noopener">Stuff.co.nz</a>. Images: Getty

Home Hints & Tips

Stranger’s “kind” act for a struggling single mum

A struggling single mother has been moved to tears by a stranger’s random act of kindness while doing her grocery shopping. The mother, hailing from Ipswich in Queensland, was doing her shopping ahead of the school term starting up as she paced the aisles mentally tallying the cost of her groceries to not go over her strict budget. As she continued to add carefully selected items to her trolley, a young girl approached her with a gift. The girl handed her a $50 note saying it was a gift from her mother, in a random act of kindness that left her “shaking and crying”. “I had the most incredible thing happen to me today. I'm in Woolies Riverlink in Ipswich QLD getting a few things for back to school and I'm adding my shopping up on my calculator and checking the price of EVERYTHING,” the mum wrote in a Facebook post. “Next, a lovely little girl came up to me handing me a $50 and said 'My mummy wants to give you a gift', I said 'Thank you, have the wrong person, honey'.” The young girl assured the woman she was the person her mum wanted to give the $50 to and ran off before she could say anything else. “I looked up at her mum shaking and in tears and she gave me a nod and a thumbs up,” the woman said. “She had no idea just how much I needed this right now. Her kindness meant the world to me.” Many applauded the stranger’s generosity as more families are feeling the pressure with sky-rocketing costs of living, with like-minded budgeting mothers sharing how they were touched by the sweet story. “Made me cry this lovely Sunday morning. Always gives hope to know there are some really wonderful people out there,” one person said. “There are some truly wonderful people in the world! You don't have to give someone $50 to make their day - any small kind gesture can change the course of someone's life,” a second agreed. “There are some absolute angels out there for sure!” said another. Image credits: Getty Images

Caring

How much it costs to rent Hugh Jackman’s bucket list home

After building and developing this stunning, minimalist East Hamptons estate over a period of six years, Wolverine star Hugh Jackman and his wife Deborra-lee Furness have decided to put it to better use by popping it onto the rental market – and it will only set you back around half-a-million dollars per month, according to <a href="https://www.corcoran.com/listing/for-rent/20-hedges-banks-drive-east-hampton-ny-11937/6517169/regionId/3" target="_blank" rel="noopener">Corcoran.com</a>. “Stunning Modern Waterfront Compound!” screams the listing. “Beautifully done, highest end construction, with every amenity, including gym, theater, flush edge pool, jacuzzi, and two single and separate homes, set high on the bluff overlooking the open bay with the most spectacular views!” After Hugh bought the property for $3.5m in 2015, he and Deborra-lee spent six long years renovating it, and turning it into what Furness described as her “lifelong dream”. Architect Stelle Lomont Rouhani collaborated with Jackman and Furness to create “the utmost Zen tranquillity overlooking the Gardiner's Bay in East Hampton”. The minimalist main house with a gourmet kitchen, Gaggenau appliances and an informal dining room features a hand-carved solid bleached walnut dining table, custom crafted by Field & Co., 3 en suite bedrooms, floor-to-ceiling glass doors, and a guest house, meticulously renovated and features open living space complete with a top-of-the-line kitchen with bar area, a step-down open living room with lounge-style seating, along with a loft bed and lounge areas and a primary suite overlooking the oversized pool and spa sitting above the bay with a spectacular 180-degree vista of the water. Set on a sprawling 2.5-acre plot, the 5-bedroom, 5 1/2 bath compound is the ultimate retreat with all the amenities of a 5-star resort. Images: Corcoran.com

Real Estate

Prince Andrew to appeal loss of another royal perk

Prince Andrew has lost another costly royal perk in the wake of his various controversies, but his appeal against it may spark ire among Brits struggling with a cost-of-living crisis. The former royal has been told he will no longer be granted taxpayer-funded armed guards from next month, nearly a year after he was stripped of his titles and duties after his relationship with Jeffrey Epstein was publicised. Unlike titles and duties, security for the royal family is determined by the Royal and VIP Executive Committee, including the Home Office, Metropolitan Police and palace officials. According to The Sun, insider sources said Andrew has written to the Home Office and Met Police over losing his security detail. ''He is going to write to the Home Office and the Met Police to complain about losing his taxpayer-funded security,'' the source told the outlet. Currently, Andrew is escorted by police guards whenever he leaves the grounds of Windsor, with the escort estimated to cost taxpayers up to three million pounds ($NZ 5.8 million) a year. With the UK facing a cost-of-living crisis and skyrocketing bills this winter, there is speculation that Andrew’s complaints may cause more negative reactions towards him. ''He doesn't seem to understand that he's in disgrace and people don't want to hear from him anymore - especially him with his begging bowl,” a Labour MP said, as reported by Express UK. The latest loss comes after the 62-year-old was told to stop using His Royal Highness and his royal military titles in January, with his royal patronages also returned to the late Queen. In the following months, Andrew settled a lawsuit launched against him by Virginia Roberts Giuffre, who accused him of sexually abusing her when she was a teenager. With the ultimate decision surrounding his security detail lying with Home Secretary Suella Braverman and given his recent controversies, it seems unlikely that Andrew’s appeal will be a success. Image: Getty Images

Money & Banking

Royal staff face uncertain future amid palace shake-up

King Charles III is reportedly planning to slim down the ranks of staff at England’s royal residences, months after staff at Clarence House were told they were being made redundant. According to a royal insider, the reported 491 full-time staff working across Buckingham Palace, Balmoral Castle, Windsor Castle and other royal residences, per <a href="https://www.msn.com/en-au/news/australia/king-charles-reportedly-planning-to-fire-late-queen-s-ladies-in-waiting-among-other-staff/ar-AA14jAlj?cvid=94ec179e798b4a65b52b3da30143492b" target="_blank" rel="noopener">msn.com</a>, are “extremely worried” about their positions and fear they will be unemployed by the end of the year. "It's a really testing time. Many are already resigned to leaving jobs they have cherished for years," the insider told <a href="https://www.thesun.co.uk/fabulous/20479578/king-charles-makes-major-royal-shake-up/" target="_blank" rel="noopener">The Mirror</a>. "It's left a real sense of dread among staff." Royal insiders believe Queen Elizabeth II’s ladies-in-waiting at the Royal Stud in Sandringham are among those at risk. The news comes one week after the King announced a one-off cost-of-living bonus for his staff, with a source telling <a href="https://honey.nine.com.au/royals/king-charles-pays-staff-bonus-out-of-pocket-cost-of-living/c4f05fbe-3d8e-4e13-b475-6b2f9c15a28d" target="_blank" rel="noopener">The Sun</a> that Charles was paying hundreds out of his own pocket to help his lowest-earning employees during the country’s cost-of-living crisis. "It is being given on a sliding scale with those most in need and on lower wages getting the most money," the source said. For some royal staff, the recent risk of redundancy may come for a second time, after up to 100 employees at Charles’ former residence of Clarence House were given redundancy notices during the Queen’s thanksgiving service in September. In a letter sent to staff by Sir Clive Alderton, the King’s top aide, it was revealed that the Clarence House household “will be closed down”. “The change in role for our principals will also mean change for our household … The portfolio of work previously undertaken in this household supporting the former Prince of Wales’s personal interests, former activities and household operations will no longer be carried out, and the household … at Clarence House will be closed down. It is therefore expected that the need for the posts principally based at Clarence House, whose work supports these areas will no longer be needed,” his letter read, as reported by the <a href="https://www.theguardian.com/uk-news/2022/sep/13/king-charles-staff-given-redundancy-notice-during-church-service-for-queen" target="_blank" rel="noopener">Guardian</a>. “I appreciate that this is unsettling news and I wanted to let you know of the support that is available at this point.” It is understood that staff made redundant would be offered searches for alternative employment across the royal households. “Our staff have given long and loyal service and, while some redundancies will be unavoidable, we are working urgently to identify alternative roles for the greatest number of staff,” a Clarence House spokesman said at the time. Image: Getty Images

News

Cold homes increase the risk of severe mental health problems – new study

Concerns about <a href="https://theconversation.com/energy-crisis-the-uk-is-still-heading-for-widespread-fuel-poverty-despite-the-governments-price-cap-190290" target="_blank" rel="noopener">fuel poverty</a> and people not being able to heat their homes adequately are not new in the UK, but these worries have been <a href="https://www.theguardian.com/uk-news/2022/oct/26/warm-banks-open-wolverhampton-cost-of-living-crisis" target="_blank" rel="noopener">heightened</a> by significant increases in energy costs and the <a href="https://theconversation.com/the-cost-of-living-crisis-has-been-many-years-in-the-making-but-politicians-on-both-sides-ignore-this-189483" target="_blank" rel="noopener">cost-of-living crisis</a>. And as winter approaches, things are about to get a lot worse. Despite a relatively mild climate, the UK has higher levels of excess winter deaths – deaths associated with cold weather – than <a href="https://linkinghub.elsevier.com/retrieve/pii/S0140673614621140" target="_blank" rel="noopener">many colder countries</a>. This greater exposure to cold, despite milder weather, is related to poor housing quality, the high cost of heating homes and poverty. We know quite a lot about how living in a home that you can’t keep warm enough affects your physical health. Colder temperatures <a href="https://www.instituteofhealthequity.org/resources-reports/the-health-impacts-of-cold-homes-and-fuel-poverty/the-health-impacts-of-cold-homes-and-fuel-poverty.pdf" target="_blank" rel="noopener">suppress the immune system</a>, for example. But we know relatively little about the effects on mental health. <a href="https://doi.org/10.1016/j.socscimed.2022.115461" target="_blank" rel="noopener">Our new research</a> shows that living in a cold home is a significant mental health risk. Living in a cold home can affect your mental health in several ways. For many, heating costs are a source of stress and financial strain. Not being able to keep your home and family comfortably warm reduces feelings of control and autonomy over your environment. People who are unable to heat their home often adopt coping mechanisms that <a href="https://onlinelibrary.wiley.com/doi/10.1111/j.1365-2524.2005.00558.x" target="_blank" rel="noopener">limit socialising</a> – for example, not inviting friends over and going to bed early to keep warm. And many people are just worn down by the drudgery of a whole winter of being uncomfortably cold. Using <a href="https://www.understandingsociety.ac.uk/" target="_blank" rel="noopener">data</a> from a large representative sample of adults in the UK, we followed people over many years and tracked the effect of being unable to keep your home warm on mental health. When people’s homes became cold, their risk of severe mental distress significantly increased. For people who previously had no mental health problems, the odds of severe mental distress doubled when they had a cold home, while for those who had some (but not severe) mental health symptoms, the risk tripled (see chart below). We found these effects even after taking into account many other factors associated with mental health, including income. Odds of reporting severe mental distress following transition into cold housing compared to those who remained in warm homes <figure class="align-center "><img src="https://images.theconversation.com/files/492381/original/file-20221028-61968-sxkqgr.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/492381/original/file-20221028-61968-sxkqgr.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=483&fit=crop&dpr=1 600w, https://images.theconversation.com/files/492381/original/file-20221028-61968-sxkqgr.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=483&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/492381/original/file-20221028-61968-sxkqgr.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=483&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/492381/original/file-20221028-61968-sxkqgr.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=607&fit=crop&dpr=1 754w, https://images.theconversation.com/files/492381/original/file-20221028-61968-sxkqgr.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=607&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/492381/original/file-20221028-61968-sxkqgr.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=607&fit=crop&dpr=3 2262w" alt="" /><figcaption>author provided</figcaption></figure> Sadly, the risk of living in a cold home differs greatly across the UK population. Lone parents and people who are unemployed or long-term sick are much more likely to live in cold homes. There is also significant inequality across ethnic groups – more than 12% of black people live in cold homes compared with under 6% of white British people, for example. Those who rent rather than own their home are also far more likely to live in cold homes, for social renters this is despite the, on average, <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1088447/EHS_Housing_quality_and_condition_report_2020.pdf" target="_blank" rel="noopener">higher quality and</a><a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1091144/Energy_Report_2020_revised.pdf" target="_blank" rel="noopener">efficiency</a> of social rented homes. Putting on another jumper won’t be enough to get many in the UK through the coming winter. And mental health distress is just one consequence. Cold homes cause issues with significant personal and societal costs – from individual health effects to the increased pressure on the NHS, as well as broader economic loss due to missed work. Rishi Sunak’s new government needs to help people live in adequately warm homes this winter. But how? The older age of housing in the UK is <a href="http://www.instituteofhealthequity.org/projects/the-health-impacts-of-cold-homes-and-fuel-poverty" target="_blank" rel="noopener">heavily implicated</a> in the UK’s high levels of cold. Support for energy efficiency improvements is therefore a possible means of reducing cold homes. This will also mean tackling the so-called “split incentive” in the private rented sector, which houses a significant proportion of households. The split incentive refers to the challenge of the benefits of improvements not being experienced by the property owners but by tenants, reducing the incentive for owners to invest. This results in poorer quality and more expensive homes for renters. Heat or eat? Most can’t afford either The high proportion of cold homes in the social housing sector – despite having the best average energy efficiency due to insulation and building types (flats) – shows that energy efficiency improvements alone will not eliminate cold. <a href="https://www.resolutionfoundation.org/publications/the-living-standards-outlook-2022/" target="_blank" rel="noopener">Incomes in the UK are falling</a>. Benefit levels are <a href="https://theconversation.com/raising-benefits-in-line-with-earnings-will-make-the-poor-worse-off-heres-why-192880" target="_blank" rel="noopener">painfully low</a> and worsened by policies including the benefit cap, two-child limit and sanctions. Years of cuts and <a href="https://www.jrf.org.uk/file/59072/download?token=acsEgZp7&filetype=briefing" target="_blank" rel="noopener">below inflation rises</a> mean that the term “heat or eat”, used to describe difficult spending decisions for low-income households, is now out of date, as <a href="https://www.jrf.org.uk/file/59191/download?token=PCFIM8W9&filetype=briefing" target="_blank" rel="noopener">many can afford neither</a>. The combination of low household incomes with surging energy costs has created devastating pressure on household budgets. While the energy cap has limited energy cost increases below the worst estimates, energy bills have still <a href="https://theconversation.com/energy-crisis-the-uk-is-still-heading-for-widespread-fuel-poverty-despite-the-governments-price-cap-190290" target="_blank" rel="noopener">more than doubled in the past year</a>. And prepayment meters mean that those the with the least end up paying the most. There are, therefore, many areas for potential government intervention, and clear evidence that failing to intervene will cause harm to health.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/193125/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> Writen by Amy Clair. Republished with permission from <a href="https://theconversation.com/cold-homes-increase-the-risk-of-severe-mental-health-problems-new-study-193125" target="_blank" rel="noopener">The Conversation</a>. Image: Getty Images

Real Estate

British couple sell raffle tickets to offload home

A family forced to sell their home have had to get creative to do it after they were knocked back for a loan for a new house - and it could see a new owner claim the property for a £3 raffle ticket. Declan Garrett and wife Leoni Webb have been forced to sell their property in Weston-super-Mare, a town in North Somerset, due to the soaring cost of their mortgage. But, they can’t get a loan for a new home as banks knocked them back due to the size of their blended family, with a total of seven kids. With pressure coming from inflation and a rising cost of living, the couple turned to raffle tickets to raise the money they need for a new home that is big enough for their soon-to-be teenage kids. All interested buyers need to do is grab a raffle ticket and they could be in the running to win the keys to the coastal home, with the winner to be drawn on October 26. <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/tv/CeyIP3klfj4/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/tv/CeyIP3klfj4/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by Weston-super-Mare House Raffle (@wsmhouseraffle)</a> </div> </blockquote> But, there are some caveats. The couple launched the raffle through an online platform in June, telling The Sun that they need to sell about 100,000 tickets to raise the £300,000 they need. If they don’t reach their target, the main prize will instead become 75 percent of the amount raised through raffle ticket sales. In an emotional clip shared to an Instagram page dedicated to the house and raffle, Ms Webb explained that she and her husband would sell their home the usual way if they would. “Why on earth would we choose to open ourselves up to the criticism and absolute tolling that we have?” she said. <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/CgAIYuNIPfL/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/p/CgAIYuNIPfL/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by Weston-super-Mare House Raffle (@wsmhouseraffle)</a> </div> </blockquote> “The cost of living is absolutely ridiculous right now – we understand more than most. We have seven children who need feeding and clothing. “My husband is a school teacher and I worked in behavioural education, so I also work within schools. Ordinarily we wouldn’t be able to afford a house. We were very, very lucky to buy a house when we did. “As we are looking to move…so we decided to raffle off our house to give somebody the gift of owning a house. “I really hope we can pull this off.” The sale of raffle tickets for four-bedroom home closes on October 21 local time, with tickets available to be purchased <a href="https://raffique.co.uk/product/win-a-house-in-weston-super-mare/" target="_blank" rel="noopener">here</a>. Image: @wsmhouseraffle (Instagram)

Money & Banking

Child marriage comes with a heavy cost for young girls in Africa – but there’s one clear way out

650 million women and girls alive today were married before their 18th birthday. That’s one of the startling figures contained in a <a href="https://data.unicef.org/wp-content/uploads/2021/11/Towards-Ending-Child-Marriage-report-2021.pdf" target="_blank" rel="noopener">2021 UNICEF report</a> about child marriage. Africa’s sub-Saharan region is home to <a href="https://data.unicef.org/topic/child-protection/child-marriage/" target="_blank" rel="noopener">nine of the ten countries</a> with the highest rates of child marriage in the world. Ingrained traditions and cultural practices typically entrench such early marriages. State or customary laws in <a href="https://www.unfpa.org/sites/default/files/pub-pdf/MarryingTooYoung.pdf#page=12" target="_blank" rel="noopener">146 countries</a> allow girls younger than 18 to marry with the consent of their parents or other authorities. In <a href="https://www.unfpa.org/sites/default/files/pub-pdf/MarryingTooYoung.pdf#page=12" target="_blank" rel="noopener">52 nations</a>, girls under 15 can marry with parental consent. Early marriage among boys is <a href="https://www.unicef.org/press-releases/115-million-boys-and-men-around-world-married-children-unicef" target="_blank" rel="noopener">also widespread</a>, though the numbers are far lower than they are for girls and young women. And it is girls and young women who pay the heaviest costs for early marriage. Girls who marry before 18 are <a href="https://data.unicef.org/wp-content/uploads/2021/11/Towards-Ending-Child-Marriage-report-2021.pdf" target="_blank" rel="noopener">more likely</a> to be subjected to domestic violence and less likely to continue schooling than their peers. They have worse economic and health outcomes, a burden they almost inevitably pass on to their children. Early marriage has been linked to poorer <a href="https://www.wider.unu.edu/sites/default/files/Events/PDF/Slides/1_khatoon.pdf" target="_blank" rel="noopener">cognitive development</a> and <a href="https://www.sciencedirect.com/science/article/abs/pii/S0277953617303283" target="_blank" rel="noopener">stunting</a> among the children of such women. Today, the practice is declining thanks to national and international policies, global treaties and, since 2016, the UNFPA-UNICEF Global Programme to End Child Marriage. But gains have been slow in sub-Saharan Africa. What is it that drives the practice in the region? That’s what we examined in a <a href="https://journals.sagepub.com/doi/10.1177/0021909620966778" target="_blank" rel="noopener">recent study</a>. Using statistical analysis, we looked at the socio-economic and demographic determinants of early marriage among young women the Democratic Republic of Congo (DRC), Malawi, Mali and Niger. Each of the four countries has sought to introduce measures to discourage early marriage, but their challenges remain formidable. We explored several possible explanations and variables: age at first intercourse, education and literacy, women’s current age, region and type of place of residence, family wealth index, ethnicity, employment status, and even mass media exposure. One factor stands out across the four countries in our study: education. Women without formal education are more likely to marry early than those who completed secondary or higher education. <h2>Four study countries</h2> The four countries have a great deal in common, including high poverty levels and substantial under-15 and rural populations. In each country, around 50% of people are younger than 15, and around half of the countries’ respective populations live in rural areas (a full 84% in the case of <a href="https://malawi.unfpa.org/sites/default/files/resource-pdf/2018%20Malawi%20Population%20and%20Housing%20Census%20Main%20Report%20%281%29.pdf#page=23" target="_blank" rel="noopener">Malawi</a>). Among the four countries in our study, Niger has the highest child marriage prevalence worldwide – 76% of girls are married before the age of 18. The rates stand at 52% in Mali, 42% in Malawi, and 37% in the DRC. For our analysis, we turned to the most recently available demographic and health surveys from each of the four countries. We then applied a framework that seeks to describe the important social-cultural and cognitive variables and their interrelationships that underlie behaviours and decisions around reproductive health. <h2>Statistical variables</h2> The answers we found as to why early marriage is so commonplace in these countries were not always clear-cut. What’s more, there were lots of statistical variations across the four countries and contradictions, as was to be expected. For example, the average age of first marriage ranged from 15.3 in Niger to 17.1 in Malawi. There was also a range in the percentage of women from the poorest wealth category in the countries who had been married by 18: Niger (90.9%), Mali (80%), DRC (70.3%), Malawi (63.1%). Rates of early marriage dropped among women from richer categories, but were still high: Niger (72.7%), Mali (65.4%), DRC (60.3%) and Malawi (42.5%). The study also showed that young women living in rural areas were likely to marry earlier than those from urban areas. These variations’ social, economic, and cultural underpinnings are likely complex and would need some unpacking. In some cultures, for example, girls are married off young as they are considered to be more likely to be virgins still and can thus fetch a higher payment of what’s known as the <a href="https://www.globalcitizen.org/en/content/child-marriage-brides-india-niger-syria/" target="_blank" rel="noopener">bride price</a>. Amid the many statistical variables that emerged, we were especially struck by the relationship between educational levels and average age at first marriage. <h2>The role of education</h2> We found that the average age at first marriage in Niger, Mali, DRC, and Malawi increased from young people with no education (15.1, 15.4, 16.2, and 16.4, respectively) to those with secondary and higher education (17.0, 16.6, 17.1 and 18.5 in that order). In addition, we saw that the highest prevalence of early marriage (by 18 years) was found among young women with no education (90.6%, 80.3%, 70.9%, and 70.3%). It was lowest among women with secondary and higher education (64.2%, 62.9%, 58.9%, and 30.2%). Malawi is the only one of the four countries where school education is universal, accessible and compulsory. Education offers young women opportunities in life. In some African cultures, however, allowing girls to finish or even attend school <a href="https://www.girlsnotbrides.org/learning-resources/child-marriage-and-education/" target="_blank" rel="noopener">is discouraged</a> as it is feared that an educated girl is less likely to get a husband or be a good wife. <a href="https://www.girlsnotbrides.org/learning-resources/child-marriage-atlas/atlas/malawi/" target="_blank" rel="noopener">In Malawi</a>, less than 15% of women have any secondary school education, and 42% of girls are married before the age of 18 – the twelfth highest rate of child marriage in the world. <h2>Next steps</h2> There is an urgent need for governments in these countries to introduce programmes that promote delaying the age at which girls first have sex and to equip adolescents with knowledge about responsible and safer sex. Policymakers should also work to promote prolonged enrolment in school for adolescent girls. And, crucially, laws are needed – and must be enforced – that criminalise child marriages. This article originally appeared on <a href="https://theconversation.com/child-marriage-comes-with-a-heavy-cost-for-young-girls-in-africa-but-theres-one-clear-way-out-190924" target="_blank" rel="noopener">The Conversation</a>. Image: Shutterstock

Legal

Battle of wills is costly and rarely delivers

There's nothing quite so grubby and unseemly as adult children battling over the last will and testament of a parent but such bitter skirmishes are constantly being fought through the courts. A will, properly done, is no guarantee against a legal challenge from a family member who feels they have not been left a fair slice of the family wealth. But courts tend to respect the wishes of testators to leave their wealth to whomever or whatever they wish, as long as they have not breached their “moral duty” to family members (for example entirely excluding one of three children without good reason or promising to leave something to a carer and then not doing so) or have failed to provide adequately for young children. It does appear a fair number of wills are made in people's dying days, often varying earlier wills as they ponder how they want to dispose of their worldly wealth. While it's always tempting to draw conclusions from a limited number of cases, it is hard not to theorise that wills drawn up in dying days are more likely to be challenged under the notion the writer lacked mental capacity, or that they were more susceptible to undue influences. But while these challenges may be costly to the estate - and enriching to lawyers - case law shows that mere unfairness will not be overturned by the courts, and that courts will only do the minimum needed to remedy any “breach of moral duty”. And, to quote one judgment, just because a judge “sitting in the testator's armchair” might see the matter differently, does not mean they should rewrite a will. A good will can be challenged Testators cannot be sure their will won't be challenged even if they make small bequests to recognise their moral duties to all their issue and justify their decisions in writing - something Public Trust asks testators to do. This tends to include citing the help given to family members in life. In one case a woman left most of her wealth to her granddaughter, who she had raised and who had looked after her later in life. The woman's two sons chose to challenge the will, which left one nothing (he had been helped financially in his parents' lives and had later squabbled over money with his mother) and the other a token amount. The brothers lost the legal tussle. Mother cut out of daughter's will One case involved the unusual situation of a mother seeking to have the will of her daughter altered. The daughter, dying of cancer, changed her will as she neared death, leaving all her money to friends, the Cancer Society and the hospice that was caring for her. The mother, included in a previous will, alleged her daughter lacked the mental capacity to make a will and also that “undue influence” had been brought to bear on her by a friend who inherited from the will. The allegations were backed by no evidence. Besides, the daughter had shown she had thought about her mother in notes stating that her mother was now financially independent. Getting the sums right In life a testator helped his son buy the family farm. When he died, his son's debts were forgiven, thereby passing the farm entirely to his son. The residual estate was then to be split among his other two children, both daughters. That meant the daughters got much less than the son, whose farm they believed was now worth about $10 million in part due to significant capital gains. The daughters challenged the will but the court said they could not maintain there had been a moral breach as both were left sums of about $300,000, even though there was written evidence the testator and his wife understood they put in place "arrangements which would give our three children an approximate equal share of our estates”. Unfortunately, their desires were not achieved in the legal documents. It appears the testator's professional advisers may not have done a good job. Abusive son A man who challenged his parents' will, in which he was left $70,000 of their $400,000 estate, got nothing more despite claims he deserved a half share. The man had Asperger's Syndrome but the judge decided the abusive way he treated his parents was only partly a result of the syndrome. The judge found the parents had treated the man well but that he had been abusive - documents were quoted in the judgment including one telling his parents to "f... off out of my life" - and that the relationship had been a “one-way street”. They had also given him $50,000 to pay off debts before they died and while they had considered cutting the son out of the will entirely, they had not. They had not, therefore, failed in their moral duty to him. Written by Rob Stock. First appeared on <a href="http://www.stuff.co.nz/" target="_blank">Stuff.co.nz</a>. Any advice contained in this communication is general advice only. None of the information provided is, or should be considered to be, personal financial advice.

Legal

What happens if I can’t pay my mortgage and what are my options?

With rising costs of living, including interest rate rises, many people are really worried about their mortgage. So, what actually happens if you can’t pay your mortgage – and what are your options? Here’s what you need to know. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/480028/original/file-20220819-26-vpnqeb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/480028/original/file-20220819-26-vpnqeb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/480028/original/file-20220819-26-vpnqeb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=451&fit=crop&dpr=1 600w, https://images.theconversation.com/files/480028/original/file-20220819-26-vpnqeb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=451&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/480028/original/file-20220819-26-vpnqeb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=451&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/480028/original/file-20220819-26-vpnqeb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/480028/original/file-20220819-26-vpnqeb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/480028/original/file-20220819-26-vpnqeb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" alt="" /></a><figcaption>It’s not particularly rare for a borrower to face a period of temporary financial hardship. Photo by Tierra Mallorca on Unsplash, <a class="license" href="http://creativecommons.org/licenses/by/4.0/" target="_blank" rel="noopener">CC BY</a></figcaption></figure> Payment deferrals, payment plans or getting fees waived It’s not particularly rare for a borrower to face a period of temporary financial hardship, often due to circumstances beyond their control. <a href="https://www.rba.gov.au/publications/bulletin/2021/sep/the-financial-cost-of-job-loss-in-australia.html" target="_blank" rel="noopener">Job loss</a>, relationship breakdowns, natural disasters, injuries and illnesses all affect the capacity of householders to repay their loan, especially given mortgages tend to run over many years, if not decades. Banks have “hardship” processes to deal with borrowers who are temporarily unable to repay their loan. The <a href="https://www.ausbanking.org.au/" target="_blank" rel="noopener">Banking Code of Practice</a>, to which most banks subscribe, provides guidelines for lenders to help consumers through financial difficulties. One form of relief is a payment deferral or “holiday”. That’s where a customer is able to postpone repayments until the issue causing hardship is resolved. Many people used this option during COVID lockdowns. However, a payment holiday sometimes simply “kicks the can down the road” and the customer is still in financial trouble when their temporary payment holiday ends. Other options include payment plans. This is where you pay back less per month but the mortgage lasts longer overall. Or, the bank may simply offer advice on how to handle finances until you’re back on your feet. It is also possible for banks to waive discretionary fees (such as those related to overdue payments). Banks don’t really want you to default Banks typically do not want their customers to default on property. They’re usually protected against losses themselves through lender’s mortgage insurance, but banks see mortgage holders as particularly valuable customers. They have shown they can obtain finance and repay loans. Usually, it’s easier for the bank to make hardship arrangements with a customer - and build trust along the way - than it is to wind up a mortgage, seize the property and then have to deal with trying to sell it in a flagging market. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/480029/original/file-20220819-15-jlfc4b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/480029/original/file-20220819-15-jlfc4b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/480029/original/file-20220819-15-jlfc4b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/480029/original/file-20220819-15-jlfc4b.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/480029/original/file-20220819-15-jlfc4b.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/480029/original/file-20220819-15-jlfc4b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/480029/original/file-20220819-15-jlfc4b.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/480029/original/file-20220819-15-jlfc4b.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" alt="" /></a><figcaption>Mortgagee-in-possession can lead to lower sale price. Photo by RODNAE Productions/Pexels, <a class="license" href="http://creativecommons.org/licenses/by/4.0/" target="_blank" rel="noopener">CC BY</a></figcaption></figure> What about my credit score? Recent <a href="https://www.creditsmart.org.au/financial-hardship/changes-to-credit-reporting-from-july-2022/" target="_blank" rel="noopener">changes</a> to the credit legislation make it easier to apply for a payment plan without affecting your credit score. From July 1, 2022, under the terms of a financial hardship arrangement, a customer’s credit report will show they have made on time repayments for the period of the arrangement – providing they have followed the terms of the hardship agreement. Credit reports will also indicate whether (but not why) a customer is in a financial hardship arrangement. This information stays on a credit report for one year, then disappears. Importantly, though, hardship information will be visible to other credit providers, and may affect a customer’s ability to get other loans during the period. I’m struggling. So what should I do? Contact your financial institution as early as you can. Your bank may be able to offer payment relief in the form of reduced payments or a holiday from repayments – or a combination of both. You usually need to provide evidence for the reason for financial hardship, and there’s an expectation you’ll be able to resume repayments when the temporary issue is resolved. Not every application for hardship will be successful, particularly if you have made promises to repay in the past and not followed through. <a href="https://moneysmart.gov.au/how-life-insurance-works/income-protection-insurance" target="_blank" rel="noopener">Income protection insurance</a> (for those who plan for uncertainties) may help prevent the need for hardship arrangements in the first place. If you see the issue as ongoing, rather than temporary, consider a different approach. If you’re ahead on your mortgage (as many Australians were during the pandemic), or you have significant equity in your house, consider refinancing. That’s where you take out a new mortgage to repay an existing loan. You may be able to get a lower monthly repayment, especially if you have built an equity stake greater than 30%. It won’t always be an option, especially if you are a recent borrower facing rising interest rates, stagnant or falling house prices, and have limited equity. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/480030/original/file-20220819-1146-svsca9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/480030/original/file-20220819-1146-svsca9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/480030/original/file-20220819-1146-svsca9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/480030/original/file-20220819-1146-svsca9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/480030/original/file-20220819-1146-svsca9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/480030/original/file-20220819-1146-svsca9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/480030/original/file-20220819-1146-svsca9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/480030/original/file-20220819-1146-svsca9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" alt="" /></a><figcaption>A growing number of Australians are worried about their home loan. Photo by mentatdgt/Pexels, <a class="license" href="http://creativecommons.org/licenses/by/4.0/" target="_blank" rel="noopener">CC BY</a></figcaption></figure> In dire circumstances, you may be able to <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/early-access-to-your-super/" target="_blank" rel="noopener">access your superannuation early</a> (which means you may have a lot less to retire on). If you really do need to sell, it is better to sell the property of your own volition, rather than having a forced sale. Mortgagee-in-possession (which is where the bank sells the house) can often lead to a lower sales price than a vendor-led campaign, and the time frame may not suit you. Free help is available. The <a href="https://www.arca.asn.au/" target="_blank" rel="noopener">Australian Retail Credit Association</a> provides information on how hardship processes are reported, while the <a href="https://financialrights.org.au/factsheets/mortgage-stress/" target="_blank" rel="noopener">Financial Rights Legal Centre</a> helps advocate for consumers through the mortgage stress process. The government’s <a href="https://moneysmart.gov.au/managing-debt/financial-hardship" target="_blank" rel="noopener">Moneysmart</a> site also provides information on how to navigate the hardship process.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/188891/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/andrew-grant-442581" target="_blank" rel="noopener">Andrew Grant</a>, Senior Lecturer in Finance, <a href="https://theconversation.com/institutions/university-of-sydney-841" target="_blank" rel="noopener">University of Sydney</a> This article is republished from <a href="https://theconversation.com" target="_blank" rel="noopener">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-happens-if-i-cant-pay-my-mortgage-and-what-are-my-options-188891" target="_blank" rel="noopener">original article</a>. Image: Getty Images

Money & Banking

Just how much does each day on a cruise cost

Part of the great appeal of cruising is the idea that it will work out cheaper than other types of holidays due to paying for meals and accommodation upfront. But recent data from Cruise Lines International Association Australia (CLIA) seems to suggest that this might not necessarily be the case with some holidays. Thought the purchase of multiple add-ons like beverage packages, room service, on-shore excursions or other activities, cruises can actually work out much more expensive. <a href="http://www.finder.com.au/" target="_blank" rel="noopener">CLIA broke down</a> what a typical cruise passenger spent each day in 2014: <img style="display: block; margin-left: auto; margin-right: auto;" src="../media/23487/cruise-graph_499x315.jpg" alt="Cruise Graph" width="499" height="315" /> Figures include items you have to pay for up front, as well as extras that might not be part of your cruise package. But it works out the average cruise passenger was paying $384 a day, which depending on the type of holiday you’re used to might actually be more expensive. What’s your take on the figures? Have you recently taken a cruise and did you find it a major bargain, or did it work out more expensive? Share your thoughts in the comments. Image credit: Finder.com.au / Getty

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Restaurant sparks outrage for "ridiculous" fee

"Proud to pay more": The billionaires who want to pay more tax

The cost-of-living crisis is hitting hard. Here are 3 ways to soften the blow

What is the ‘sunk cost fallacy’? Is it ever a good thing?

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Shop around, take lunch, catch the bus. It is possible to ease the squeeze on your budget

The cost of living is biting. Here’s how to spend less on meat and dairy

King Charles hit hard by cost of living crisis

Ready-made foods you should avoid at all costs

9 cost-effective ways to warm your home this winter

Stranger’s “kind” act for a struggling single mum

How much it costs to rent Hugh Jackman’s bucket list home

Prince Andrew to appeal loss of another royal perk

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British couple sell raffle tickets to offload home

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Battle of wills is costly and rarely delivers

What happens if I can’t pay my mortgage and what are my options?

Just how much does each day on a cruise cost

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