New Money Tree Website - 15 February 2011

We launched our new website today (yay!)

We have completed a lot of testing, but we are expecting some teething issues. So if you have any problems whatsoever, please do not hesitate to contact us.

Media Release "Plan now for Christmas 2001" - 31 January 2011

"I am amazed how many people put themselves in debt over Christmas," says Diana Mathew, author of the successful book and budgeting system, The Money Tree. She stresses the importance of planning ahead to ensure a debt-free Christmas for 2011.

Read more...

The Money Tree on Channel 9's "A Current Affair" - 28 December 2006

Experts predicted that Australians would put a record $17 billion on credit cards this Christmas, taking the total average credit card balance to $4120. But there is a way out of this debt trap.

Adelaide mum Diana Mathew has written a book called 'The Money Tree', which is a step-by-step guide to getting out of the red.

Diana says the way to get out of debt is to follow a good system. "The money tree is a budgeting system which shows people how to plant, nurture and grow their budget and their financial life," Diana says.

Click here to read more...
(Opens in a new page)

The Money Tree on Channel 7's "Today Tonight" - 15 February 2006

Diana was interviewed on Today Tonight this evening along with 3 people who have been using her best selling book.

Today Tonight were very interested in the success of Diana's book "The Money Tree" and wanted to get the message out to Australian families that credit cards are a HUGE financial risk and often cause more harm than good.

It highlighted some key points of Diana's system that helps families eliminate these debts and put in place some good budgeting habbits to not only make ends meet, but actually start saving and getting ahead!

Credit Debt - 14 February 2006

“Credit card debt is staggering and on the increase”

During my time working in the Finance Industry I was shocked and horrified to discover many families increasing their borrowing capacity against the equity in their home with no particular purpose in mind.  Most would end up with a credit card with limits of $10,000 - $50,000 to use in any way they wish.  Many were already consolidating bad debt into their loans and now with a reloaded gun could go out and start spending carelessly all over again.

Because we have been enjoying very low home loan rates for some years in Australia, many loan companies can increase your borrowing capacity and consolidate your debt and by spreading the payments again over 25-30 years it looks like you are, in fact, paying less for this great privilege.

Buyer beware!!  Once this low interest honeymoon is over you could find yourself with the loaded gun pointed at you.

Many couples out there are using their credit card to top up their income because they, like most Australians, are living beyond their means.  The average Australian spends 10-15% more than they earn.  You don’t have to be a genius to work out how this story ends.

Probably the saddest of all are the couples who take cash advances against their credit card totally unaware of the real cost of these actions.  You are paying a premium rate from day one of drawing out the cash.  There is no interest free period on cash advances.

I have displayed a graph in Chapter 11 of THE MONEY TREE book which shows the effects of trying to repay a credit card debt.  The example shows the effects of owing $1,800 on a credit card at an interest rate of just 15%.  If you can only repay the minimum amount on this card it will take you approximately 8-9 years to eliminate this debt.  You will have repaid $4590 by the end of this period.  For cash advances this is considerably higher and over a longer period.

Taking out a personal loan to pay off your credit card is not a smart move either.  Some of these credit lenders are charging up to 28% in real terms.  Again, buyer beware.

One of the serious issues is that there is no emotion attached to using a credit card.   Please let me explain by this example.  If you are going to buy an item which costs $100 and you are using cash, you will notice there is a consciousness around handing over a $100 note, however we seem to feel little about using a credit card for the same purchase.  For this reason alone plastic is dangerous.  It is often not until we get the credit card bill that we feel some remorse or emotion.

Diana Mathew