CONSUMING MATTERS

DECEMBER 2000

PRODUCED BY

THE CONSUMER AND TENANT RESOURCE CENTRE OUTER EAST

FUNDED BY THE CONSUMER AND BUSINESS AFFAIRS VICTORIA

CHRISTMAS MELT DOWN

The only lasting 'present' many people are likely to receive as a result of doing their Christmas shopping on credit, is the bill in January. The results of their Christmas spending binge will start to catch-up with them towards the end of Janauary when the credit card accounts, utility bills and back to school costs start to stream in.

According to the Insolvency and Trustee Service Austration over 19,000 individuals went bankrupt last year (1999-2000): a significant proportion resulting from the excess use of credit. With this in mind it is worth considering the following strategies:

- Avoid using credit - Avoid impulse buying - Compare prices - Stick to a list - Be realistic about what you can afford - Buy gifts at post-Christmas sales - Make your own gifts - Use layby as an alternative (The Fair Trading Act 1999 provides legislative protection for layby users and a layby statement must be given.

Many shoppers buy gift vouchers thinking they can be used like cash. Shoppers are warned to check the terms and conditions of gift vourchers before they purchase them this Christmas. Questions consumers should ask:- - Is there a time limit by which the value of the gift vouchers must be redeemed? - Can the voucher be used at different stores or locations? - Will the holder be given change (or another voucher) if their purchase is less than the value stated on the voucher? - Are ther any other restrictions on the use of the voucher?

For more information regarding gift vouchers, refunds or a 10 tips for layby leaflTet contact the centre on 9761 0288

FISH & CHIPS & GST

All prices displayed must include GST but when you buy your chips by the $ are you actually getting $2 of chips plus GST or are you getting $2 of chips that includes GST - which means you will get less chips? Ask the shopkeeper what you are getting so you don't feel you have been ripped off if the chips seem a little light on.

Contact the Consumer & Tenant Resource Centre on 9761 0288 for more information.

Travel Insurance

The warm weather is fast approaching and our thoughts are turning to holidays. For those lucky enough to be travelling interstate or overseas travel insurance should be a consideration.

Denise Budge, Co-ordinator at the Consumer and Tenant Resource Centre warns that there are many different forms of travel insurance and like all consumer purchases you should shop around. Ms. Budge suggests that you consider the following before shopping for insurance - will you be travelling light or taking lots of expensive clothing and belongings with you? Are you going to participate in potentially dangerous activities such as skydiving or abseiling? Will you be driving? Will you be travelling with children or do you have elderly relatives that may become ill while you are overseas or will you be booking fares, accommodation and tours in advance?

When you are considering different policies make sure you can understand them. "If a policy is badly written then it is too easy to misinterpret what you are entitled to", warns Ms. Budge. If you have any queries regarding the policy ask questions before you sign it. Like all types of insurance, travel insurance coverage is limited. Most policies have medical and dental cover with limitations and some have reciprocal agreements with Medicare. If a trip is to be cancelled it is usually because something unforeseen has happened. Choose a policy with the level of cover you will need depending on what the cancellation will cost you. The benefit is usually paid due to illness or injury of yourself or a traveling companion, compulsory jury duty and natural disaster.

Most policies cover you if you have to cut your journey short because of a close relative's life threatening illness but some policies have restrictions that depend on the age of the sick relative. Delay cover, which covers you for strikes, riots and civil commotion needs to be checked for time limits.

Frequent Flyer Points have brought travel to many people that may not have considered travelling before. It is worth noting that very few policies will compensate you for your points lost if you have to cancel but most policies will cover your expenses if you have to stop and resume your journey. All policies cover baggage and belongings but Ms. Budge warns that cover is indemnity only and most policies don't replace old items with brand new ones, something will always be deducted for wear and tear. There are no policies that will cover you if you leave your baggage unattended in a public place and it is stolen. Some policies limit or offer no cover at all for computers, electronic equipment or jewellery. Travellers that have special requirements, pre-existing medical conditions, older travellers, single parents, pregnant women and adventure travellers should check what exclusions may apply to them. If you do have to make a claim always keep receipts, report all incidents and be aware of any time limit restrictions.

For further information you can contact the Consumer and Tenant Resource Centre on 9761 0288.