Personal loan news and advice

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Aussies are happy to take out personal loans

Aussies are happy to take out personal loans

New figures have shown that Australians are increasingly keen to take out personal loans. The Australian Bureau of Statistics has confirmed that the number of people successfully applying for fixed financial packages grew by 0.6 per cent between March and April 2012. According to the report, the value of total personal loan commitments also increased by 0.6 per cent in seasonally adjusted terms. This is quite surprising in light of claims that Aussies are being more cautious with their money. Finance minister Penny Wong recently told ABC radio that the eurozone crisis has scared Australians into putting extra cash into their savings accounts. However, it seems that a lot of people are still willing to take on credit from their banks, which may be because of the rising cost of living down under. Indeed, many Aussies have seen their disposable income take a significant hit in recent months and it is harder for them to justify spending on luxury items. Have a question about personal loans? Ask the money gurus at Mozo Answers.

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Too many Aussies are 'financially excluded'

Too many Aussies are 'financially excluded'

A growing number of Australians are being "financially excluded" because they cannot afford to pay for credit services. New research conducted by the Centre for Social Impact and funded by National Australia Bank (NAB) has shown that 39 per cent of people down under do not have access to mainstream credit cards, personal loans or even bank accounts. The fees attached to such products are far too high and a lot of Aussies are turning to alternative credit providers who have lower initial charges, but huge long-term interest rates. This is obviously placing far too many citizens into debt and NAB chief executive Cameron Clyne insisted the figures are "alarming". "In a country with a banking system and economy as strong as ours, it is simply unacceptable that nearly three million Australians are financially excluded from affordable financial services," he remarked. Mr Clyne said Australia's banks have a responsibility to resolve the situation. Have a question about personal loans? Ask the money gurus at Mozo Answers.

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Interest rate cuts 'are not inevitable'

Interest rate cuts 'are not inevitable'

A lot of economists across Australia believe that further interest rate cuts are inevitable, but this may not be the case. The government is keen to deliver a budget surplus in the next year, which has caused many people to believe that the Reserve Bank of Australia (RBA) will lower the current 3.75 per cent cash rate. This would be great news for people who have taken out personal loans, provided that lenders pass any cuts on in their entirety. Many people are struggling to cope with the rising cost of living down under and a lot of Aussies have taken out a loan in order to cover the extra expense. However, Art Woo – a director at Asia Sovereign Ratings – told Dow Jones Newswires that rate reductions are not a foregone conclusion. "The reality is the economy is still growing quite strongly," he remarked, before adding that it is difficult to justify lowering interest rates when the economy is performing well. Have a question about personal loans? Ask the money gurus at Mozo Answers.

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Uptake of personal loans increases

Uptake of personal loans increases

Aussies have been wary of taking out personal loans in recent months because of the uncertainty surrounding interest rates. The Reserve Bank of Australia (RBA) had been reluctant to lower the national cash rate until the start of May. Although the national rate now stands at 3.75 per cent – 50 points lower than last month – many banks have not handed this cut on to their customers in its entirety. It seems that many of the nation's major lenders have detached themselves from the RBA and are instead setting their own rates. However, new figures released by the Australian Bureau of Statistics have indicated that – despite the uncertainty – Aussies have been taking out personal loans in greater numbers this year. The number of people securing finance agreements grew by 1.1 per cent in seasonally adjusted terms in March 2012 when compared with the previous month. Revolving credit commitments were up by 1.2 per cent, while fixed arrangements were one per cent higher. Have a question about personal loans? Ask the money gurus at Mozo Answers.

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Casual working arrangements hindering Aussies

Casual working arrangements hindering Aussies

Casual working arrangements are hindering Aussies' chances of securing mortgages or personal loans, it has been argued. New figures released by the Australian Bureau of Statistics have indicated that rates of unemployment have declined recently, with just 5.1 per cent of the population out of work at the end of January. However, one in four people are still working on a casual basis and as a result are not entitled to holiday perks or sick pay, according to the Australian Council of Trade Unions. The organisation has now called for a review of the system and Unions WA's Simon McGurk told ABC News that the current employment structure is not entirely fair on casual staff. "It might mean that they have difficulty accessing housing, it can mean that they have trouble getting a personal loan," he was quoted as saying. Mr McGurk added that the purpose of the inquiry was not to eradicate this type of work altogether, but to ensure employees do not struggle to make ends meet should they be unable to attend their job for whatever reason. Have a question about personal loans? Ask the money gurus at Mozo Answers.

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Banks 'must hand over the cash'

Banks 'must hand over the cash'

Although unscrupulous lending was the principal cause of the current economic crisis, it is vital that banks open up their purses again and start lending, one expert warns.

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Christmas guilt sets in

Christmas guilt sets in

One in four Aussies are worrying about the amount of cash they spent over the Christmas period, a new survey has found.

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