We sometimes need to create a debt in order to get the things we need or let’s face it, the things we may want but can’t quite afford at the time. Your Bank Manager and many financial Gurus will say that as you progress in life you need to improve your credit rating in order to provide access to more borrowing. This is with a view to having the borrowing power to purchase larger things such as a house. A place to live that can also provide us with financial capital in the future. To some, owning such capital is merely a pipe dream. Without a reasonable credit rating borrowing such large amounts is reasonably hard. Or at least it should be which is at the heart of the current problems with Australia’s personal debt issues and outrageous housing costs.
So debt is OK? Debt is OK but only if it is manageable debt. That makes more sense. It’s only when we can’t repay the debt that the nightmare of long-term debt begins. What could be considered a small debt can be amplified by factors like interest or associated penalties to a point where it seems we can never pay it off and failing to meet your payments can also effect your credit rating.
Its not the stereotypical Hollywood scene of a run down, out of the way shop you walk into or some sleazy character in an old tweed jacket behind the counter wearing far too much bling giving you a potentially bad deal on a high interest loan. A potentially bad deal is available from cute furry animals or goofy Wizards or even directly via your phone. Your favourite retailer with their associated credit cards can even bring you financially undone if you can’t meet the payments or if you only ever pay the minimum amount. Debt is never a case of getting it and just moving on.
The relatively new Afterpay app sweeping across retailers may have the potential to keep the Money Bunnies quivering in their burrows and Wally wizards wasting away. Afterpay is similar to the old-fashioned lay-by system in the way it provides for several payments over time. Although there are no direct interest charges and some helpful continued borrowing prevention there are some concerns over the fees charged and penalties as well as the credit code loopholes it avoids. The fact that in only a short space of time the company’s revenue has accumulated some big profits from the penalties and fees charged to consumers unable to meet their payment options. This signals a cautious warning to the welfare agencies.
The Moneysmart website has a great range of detail about how to avoid problems with loan debt including Payday lenders and provides information on borrowing basics and a wealth of other debt issues:
https://www.moneysmart.gov.au/borrowing-and-credit
Afterpay it seems a bit too early to have identified or assessed any associated issues so like all debt options the best thing is to consider your ability to meet the repayments or if you really need to borrow at all.
As there is an app for getting into debt there is also the Affordable SA app that can help you access support to deal with debt and other cost of living issues. For certain essentials such as a fridge low-income earners can access a range of better choices such as a No Interest Free Loan, see the app for details and other great money saving services. Download the Affordable Sa app available on Apple or Google play store or visit the website at www.affordablesa.com.au to get informed or ring the Helpline on 1800 025 539
See more articles about Afterpay
ABC
SMH
Important Update
As of January 1st, 2025 the Affordable SA app will no longer be available. If you're looking for assistance or to connect with programs and services near you, please refer to our website: affordablesa.com.au, to access the assistance you need.
Affordable SA will still be available as a FREE service via website, where you can find all the services you need, in the palm of your hand.
Understanding Electricity Costs and Renewable Energy in 2025
The way Australians generate and use electricity is evolving rapidly, with a significant shift toward renewable energy sources. South Australia, once known for power shortages, became the first major jurisdiction to be powered entirely by solar energy—a remarkable milestone. As renewable energy technology becomes more widespread, you may wonder: 'will electricity become cheaper, and what steps can I take to reduce their bills today?'
The answer is promising: electricity costs are expected to decrease over time, but you can start saving now with smarter energy habits, better provider choices, and a deeper understanding of your rights as a consumer.
Your Rights as an Energy Consumer
As an energy customer in Australia, you’re protected by laws that govern your dealings with energy retailers and distributors. These rights ensure transparency, fair pricing, and access to essential energy services. Familiarising yourself with these regulations helps you make informed decisions when choosing providers and addressing billing concerns.
Choosing the Right Energy Provider
1. Use Energy Made Easy
The Energy Made Easy website is a free government service that allows households and small businesses to compare electricity and gas plans. Simply input your details to view a range of offers that suit your energy usage and location. You can also contact them directly at 1300 585 165 for assistance.
2. Key Factors to Consider
When evaluating energy plans, don’t focus solely on price. Keep these factors in mind:
- Contract Length: Are you locked into a long-term agreement, or can you switch plans easily?
- Fees and Discounts: Look out for hidden fees or discounts that may expire after a set period.
- Special Deals: Some plans offer incentives like sign-up bonuses or rebates, but read the fine print to understand long-term costs.
3. Time-of-Use Tariffs
Did you know the time you use energy can affect how much you pay? Time-of-use tariffs mean energy costs vary depending on peak and off-peak periods. Adjusting your habits, like running appliances during off-peak times, can lead to substantial savings. In South Australia, off peak times for residential is 10am - 3pm.
4. Specific Plan Types
Certain plans may cater to your unique situation:
- Smart Meter Plans: These allow for detailed tracking of your energy use.
- GreenPower Plans: For those committed to renewable energy, these plans offset your consumption with sustainable energy sources.
- Solar Energy Plans: If you have solar panels, look for plans with competitive feed-in tariffs.
- Regional Plans: Some plans are better suited for urban or rural areas, depending on infrastructure.
Reducing Energy Usage to Lower Bills
One of the simplest ways to save money on electricity is to use less of it. Conducting a home energy audit can help identify energy inefficiencies and opportunities to save. You can conduct this audit yourself by borrowing a free Home Energy Audit Toolkit from your local library.
Living Areas
- In Summer: Close windows, doors, curtains, and blinds during the day to keep the heat out. Use fans instead of air conditioners when possible, and if using air conditioning, set it to 26°C.
- In Winter: Seal draughts by closing windows and curtains. Set central heating to 18°C.
- Lighting: Switch to energy-efficient LED lights and turn them off when not in use.
- Standby Power: Switch off appliances at the wall to eliminate standby power usage.
Kitchen
- Ensure adequate space around your fridge for ventilation and check that its seals close firmly.
- Cover pots and pans when cooking to retain heat and reduce energy use.
- Only run the dishwasher when it’s full.
Bathroom and Laundry
- Wash clothes in cold water whenever possible. If using hot water, set it to 60°C.
- Dry clothes on a line instead of using a dryer.
- Install low-flow showerheads to reduce hot water usage and aim for showers no longer than four minutes.
Accessing Financial Help for Energy Bills
If you’re struggling to pay your energy bills, financial assistance may be available. Options include:
- Temporary or ongoing bill relief through government programs.
- Guidance from us at Affordable SA, call us today on 1800 025 539.
Additionally, explore our Utilities Programs listed on Affordable SA, which provide tailored solutions for reducing energy costs and managing bill payments.
The Future of Renewable Energy and Costs
As renewable energy becomes the backbone of Australia’s power grid, the overall cost of electricity is projected to decline. Solar power, wind energy, and advancements in battery storage are paving the way for a greener, more affordable future. Programs such as GreenPower and feed-in tariffs for solar customers offer opportunities to actively participate in this transition while saving money.
However, the key to maximising these savings lies in understanding your energy consumption and making adjustments today. By selecting the right provider, using energy-efficient appliances, and tapping into available support programs, you can enjoy both immediate savings and long-term benefits as Australia transitions to a renewable energy future.
Take Charge of Your Finances with ‘Be the Boss’
Managing money can be overwhelming, especially in today’s challenging economic climate. The Salvation Army’s "Be the Boss" program is here to help. This free, self-paced, three-week online course offers practical guidance to empower Australians to take control of their finances for good. Whether you're feeling out of control with your spending or just need a little help staying on track, this program provides the tools to set you on the path to financial security.
What is "Be the Boss"?
"Be the Boss" is a straightforward, user-friendly online course designed to help you assess your financial priorities, make meaningful changes, and stick to them. Here’s what makes the program stand out:
- Flexible Format: While the course is structured over three weeks, participants can choose to focus on individual sections as needed.
- Video Tutorials & Action Plans: Short, engaging videos break down financial concepts into easy-to-follow steps, and accompanying action plans help you implement what you learn.
- Tailored for Real-Life Challenges: The course addresses common financial hurdles like budgeting, saving, and managing debt, providing actionable advice to meet your specific needs.
What Will You Learn?
This program focuses on three key areas to help you master your finances:
- Understanding Your Values
- Explore what’s most important to you financially. Whether it’s saving for a home, reducing debt, or having a safety net, understanding your goals is the first step to creating a financial plan that works.
- Identifying Changes
- Identify areas where small, consistent adjustments can make a big impact. This might include tracking your expenses, cutting unnecessary costs, or prioritising essential bills.
- Taking Action
- Turn good intentions into lasting habits. The program offers strategies for staying motivated and holding yourself accountable as you work toward financial independence.
Why Participate in "Be the Boss"?
- Free of Cost: This valuable resource is completely free, making it accessible for everyone, regardless of financial situation.
- Practical and Empowering: Designed to be realistic and achievable, the program focuses on building confidence and clarity in managing money.
- Supports Broader Financial Wellbeing: It’s not just about budgeting. You’ll also gain insights into setting life goals and managing unexpected expenses.
Access Additional Support with Moneycare
For those looking for a personalised approach to financial challenges, the Salvation Army’s Moneycare service offers free and confidential financial counselling. A Moneycare counsellor can guide you through complex financial situations, provide advice on debt management, and offer a compassionate ear.
How to Get Started
Getting started with Be the Boss is easy:
- Visit the Be the Boss course page to access the course materials.
- Watch the introductory video to understand how the course works and choose the topics most relevant to your needs.
- Follow along with the videos and complete the action plans at your own pace.
Taking control of your finances doesn’t have to be overwhelming. The Be the Boss course empowers you with knowledge, practical tools, and confidence to create a brighter financial future. Start today and take the first step towards becoming the boss of your money.
For personalised advice, reach out to Moneycare on 1800 722 363.