Photo: RNZ
Send your questions to susan.edmunds@rnz.co.nz
Q: How do I make my revolving credit mortgage work for me?
A: Lots of people are big fans of revolving credit because it can be a good way to save money on your home loan. But it doesn't work for everyone.
Basically, a revolving credit works like this: You section off part of your home loan (I have $25,000) and this acts like a big overdraft.
You're paid into that account each payday, and do all your regular spending on your credit card.
Then at the end of the month, you clear your credit card. Hopefully you have a bit of surplus left that reduces the balance you have owing, and through the month the money in the account will have reduced the interest accumulating.
When you have paid off the full amount, you can section off a new bit of the loan and do it again.
It works if you can keep track of your spending and have that surplus to reduce your balance.
It doesn't work if you see money building up in the account and decide to spend it.
Q: Why does stuff in shops look so much more appealing than op shops?
A: I know op shopping has become increasingly popular in recent years, partly for financial reasons and also among people who want to be more careful about their consumption.
But you're right, the experience of shopping in an op shop is usually quite different from shopping in any other retail environment.
Bodo Lang, who is a marketing expert at Massey University, says there are a few reasons.
"First, typical retail shops sell brand new items. These are free of any signs of use and in peak condition. Then there is the fact that most retail shops have been designed by retail experts to optimise shoppers' experience.
"How products are displayed, lighting, layout, how the store is furnished, and many other aspects of retail stores are designed to make the shopping experience pleasant and make products as appealing as possible.
"Even the type of music playing in a retail store and the scent in a store can impact shoppers' behaviour. For example, research has shown that using a 'cookies and coffee' scent in a bookstore increased sales by more than 5 percent. So next time you find yourself strangely compelled to want to buy something in a retail store, make no mistake: it's not an accident. It's by design."
Q: Can you explain please, as a tax-paying citizen all my life, why I cannot move to another country with a lower cost of living and get my pension? I do not have super as every little bit of spare money I've put into my mortgage. It seems so unfair.
A: This topic has been pretty well traversed in this column in recent months.
Basically, it comes down to the affordability of the pension (NZ Super).
As it stands, one of the settings of the scheme is that people receiving the pension need to meet a residency test. You're supported as part of the economy and community.
New Zealand does have agreements with some other countries that mean you may be able to draw a pension if you live there.
MSD says these include Australia, Canada, Greece and the United Kingdom.
"What you get will depend on the Social Security Agreement of the country where you reside. In some countries you may get some or full NZ Super, in others you will get the basic pension payable in that country or you may get a combination of part NZ Super and part payment of the other country's pension. You may need to apply for that country's pension."
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