Finance Expert Warns Aussies of Sneaky Economic Tactics, Urges Bill Review

Australians are increasingly vulnerable to hidden fees and manipulative marketing practices employed by large businesses, according to a new book and recent warnings from a leading finance editor.

Nine’s Finance Editor, Chris Kohler, advocates for a bi-annual deep dive into recurring bills – a process he jokingly calls “hell day” – to ensure consumers are securing the best possible deals on essentials like insurance, utilities, and subscription services. “You just have to sit there, go through all of your regular bills and ask the question of whether or not you’re with the right provider,” Kohler said. “And I’ve gotta say, it is no fun, it sucks – but it’ll help.” This comes as household budgets remain strained amid ongoing cost of living pressures.

Kohler’s new book, How They Get You: Sneaky Everyday Economics and Smart Ways to Hold on to Your Money, exposes tactics like surge pricing, drip pricing, and the pitfalls of Buy Now, Pay Later (BNPL) schemes. He revealed that the national debt helpline is seeing a rise in small consumer debts, often originating from BNPL services, impacting even those who previously maintained good financial standing. Loyalty programs, Kohler argues, are also often not worth the exchange of personal data, especially given recent data breaches. For more information on managing debt, resources are available at Financial Counselling Australia.

Challenging conventional wisdom, Kohler also questions the long-held belief that property is the best path to wealth, particularly in the current Australian market. He suggests exploring diversified investment portfolios as a more accessible alternative. He also highlighted the hidden costs of food delivery services, noting that restaurants lose a significant portion of the fee and consumers pay up to 45% more than in-store purchases. You can find more tips on saving money here.

Kohler encourages Australians to become more aware and suspicious of business practices, emphasizing the power consumers hold when informed.