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Cheap Mother’s Day Gifts 2021

The 9th of May is fast approaching. If you are a son or daughter or the father of young children you will need to find a suitable present for Mum. Are you on a tight budget? The great news is that, if you are looking for cheap Mother’s Day gifts, 2021 is probably going to be as good a year as any to find bargains. Shops are desperate for things to get back to normal again, so promotions are everywhere!

With this in mind, we thought you might like a little help in choosing a reasonably priced gift. So, below we have put together a selection of our top 10 cheap Mother’s Day gifts that will hopefully be affordable and special.

1. A Piece Of Jewellery To Wear

Most mums enjoy wearing a piece of jewellery such as a bracelet, necklace or a pair of earrings. Yes, you can spend thousands of dollars buying a piece of jewellery but you can also spend far less and still put a smile on your Mum’s face. There is so much quality jewellery available on a limited budget, you just need to know where to look. If you find the right jewellery then your Mum will get as much pleasure wearing a modestly priced pair of earrings as she would wearing a diamond necklace costing hundreds of dollars.

If you are looking for beautiful jewellery at an affordable price, then we recommend visiting thelittl.com. You can find beautiful pieces of jewellery for less than $100 and they constantly have offers and promotions running. For example, if you subscribe to their mailing list and place an order of $100 or more, you will also receive a free pair of $100 earrings! The Littl are also running a 15% Mother’s Day promotion if you use code ‘MUM15’. For a fraction of the price of Pandora or Swarovski piece of jewellery, you can give a gift for your mother to treasure forever with the Littl.

2. Bouquet of Flowers – One Of The Best Cheap Mother’s Day Gifts

Flowers are probably one of the most popular gifts given to mothers on their special day. Whether you buy her a bouquet of red roses or a mixed floral display, she will appreciate them. If you are looking for something that will last longer, you could buy her a potted plant whether to be kept indoors or one that is planted in the garden.

If you go for flower delivery from a company such as Interflora, then you can often add cheap or complimentary add-on gifts, such as balloons, teddy bears or chocolates; which brings us to our next gift idea…

interflora flowers mothers day
Make mum smile with flowers

3. Box Of Chocolates To Indulge In

mothers day chocolates
A delicious treat will always bring a smile to her face!

Most mothers enjoy a chocolate or two whilst watching their favourite program on television. A box of her favourite chocolates is one of many cheap Mother’s Day gifts 2021 has to offer. As you will be aware, there are so many chocolate brands you will be spoilt for choice (and hopefully, she’ll share them with you!)

Surprisingly enough, Kmart actually offers a fantastic range of Mother’s Day chocolate. From Cadbury gift boxes to Lindt chocolate, there is a great selection available at an even better price!

4. Bottle Of Perfume To Smell Sweet All Day

Like most things in life, a bottle of perfume can vary significantly in price depending upon which brand you choose. For instance, if you choose a bottle of Chanel No 5 then that can prove quite expensive but do bear in mind that there are cheaper brands and they may smell just as nice as a more costly perfume. Remember, it is the thought that counts.

The Perfume Clearance Centre always has sales on so you can grab that premium perfume at a bargain price. Otherwise, we recommend checking out Zara’s range of fragrances. At a super affordable price, you can find some beautiful perfumes which smell just as heavenly as designer fragrances.

zara perfume mothers day

5. Bottle Of Wine To Whet The Appetite

When it comes to cheap Mother’s Day gifts, you can’t go wrong with a nice bottle of wine. Whether her favourite is red, white, or rosé there is so much choice available these days for a modest price. Vintage Cellars and Dan Murphy’s are likely to have Mother’s Day specials on. Who knows, your budget may stretch to a couple of bottles.

6. An Exciting Gift Experience

There are some reasonably priced RedBalloon gift experiences to choose from for your mum on Mother’s Day. Depending upon where she lives and what she likes, you could consider a scenic cruise, a winery tour and tasting experience, a relaxing salt therapy session or an invigorating infrared sauna session. Another cheap, but a fun gift from RedBalloon is Cork and Canvas (paint and sip) where you get to paint and drink wine. Best of all, your Mum might want to share the experience with you, so you also get to enjoy the gift too!

7. A Great Book To Curl Up With

Lots of mums like to spend some of what little spare time they have with their head in a book. It could be a murder mystery or an autobiography of somebody well known. Such books can prove to be cheap Mother’s Day gifts. An added bonus is that, when your mum has finished reading the novel, you can enjoy reading it. So, why not be selective when choosing the book (wink wink).

A nice gift idea is purchasing a book subscription with Bookabuy. Bookabuy sends boxes including a book and an extra gift, such as a candle or box of chocolates. You could choose to send a one-off box or make it a monthly subscription. A thoughtful, fun and affordable gift indeed. If your modern is a fan of tech, then an Amazon Kindle is an affordable, yet great gift for any book lover. Kogan has some really cheap Amazon Kindle options, plus you can shop now, pay later with Afterpay or Zip Pay if you don’t want to pay upfront.

bookabuy mothers day

8. Ornaments for around the house

affordable candle spotlight
Spotlight has a range of affordable home decor ideas like candles

Every Mum loves making the home look pretty. From little table ornaments to picture frames to hang up family photos, home decor adds a special touch. Despite being predominantly a clothing store, SHEIN offers a really nice range of home decor at super prices! It’s also worth checking out Spotlight who also sell some cute home decor at reasonable prices.

9. Mother’s Day Mug

Every year there are some cheap Mother’s Day gifts – 2021 is no exception. If your Mum enjoys a mug of tea or coffee then you might like to consider a personalised Mother’s Day mug. Every time she uses it you can be sure that she will remember that you bought it for her on that very special day. Take a look at these Mother’s Day mugs from Zazzle.

10. Personalised Cushion

A personalized cushion is an inexpensive gift for your Mum and is very personal. She will enjoy resting her head on it, or even keeping it out on display if there is a nice message attached. Etsy is a great place to shop for personalised gifts.

Happy Mother’s Day!

We hope we have helped to provide some ideas about cheap Mother’s Day gifts. 2021 is hopefully going to be a better year than last year so why not buy your Mum something that she will remember for years to come.

If you are looking to purchase a more expensive gift for your mother and don’t have the funds available then here at the Australian Lending Centre we may be able to help you with finance. You may also find our Free Online Budget Planner of assistance.

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News Uncategorised

Jobkeeper Payment Reduction – What You Need To Know

There is no doubt that 2020 has been a huge year for everyone around the globe. In Australia COVID-19 has resulted in job losses across multiple industries, forced lockdowns with businesses closing their doors, and social distancing measures that have changed the way businesses operate. The Government introduced Jobkeeper payments back at the end of March in order to subsidise the wage of workers for businesses that had been affected by the pandemic.

The idea was to keep more Australians in jobs, and less been laid off due to businesses being unable to afford their wages. Months later are we are seeing Jobkeeper payment reduction starting to take place, which has resulted in a large amount of job loss, with retailers struggling to stay afloat as we enter the Christmas period.


Jobkeeper Payment Reduction

The Jobkeeper payment reduction isn’t going to hit all businesses at once. On 21 July, the Government announced that it was going to extend the payment until 28 March 2021 for the businesses who have been hit significantly through COVID. From September 28, all businesses and not-for-profits were required to reassess whether they were eligible to continue receiving these payments.

Only qualifying businesses are able to stay on it until March next year. So what does this mean for everyone else? We have no reached the end of the year and it is no secret that the Jobkeeper payment reduction has had a huge impact on jobs in Australia.

jobkeeper new rules

Jobkeeper Payment Reduction Affect On Australian Jobs

The Jobkeeper payment reduction was inevitable, however, there was no indication of how badly it might affect businesses and the jobs available to Australians. In an ideal world, the Jobkeeper payments were intended to get businesses through the worst of COVID-19, paying a subsidised wage for their employees.

Businesses could then get back on their feet and take overpaying their employees once the Jobkeeper payment reduction began. However, this isn’t what we have seen. In just one week after the Jobkeeper payment reduction took place, we saw the number of payroll jobs drop down by 0.7 per cent. After such a long period of stability, we are now seeing a huge dop take place, which is also bringing wages down with it.


With the Christmas shopping season fast approaching, there is no doubt retailers are being left to face very uncertain times. With job losses and a reduction of income widespread across Australia, there are fears that Christmas shopping will also be cut down, as a result, leaving more jobs in the lurch in the process.

Christmas Shopping

The big question this year is whether or not Australians will be spending up this Christmas. The RBA has high hopes having tracked the money that has been pumped into the economy so far. Not all of it has been spent, with many Australians choosing to save instead. This gives hope that there will be a big wave of spending this Christmas. With social distancing measures still in place and travel restricted, there are many who won’t be able to be with their family this Christmas. Instead, there is hope they will be out buying presents to send to family and friends in lieu of actually seeing them.

Another good indication comes from the Westpac-Melbourne Institute consumer sentiment survey. This survey measures how people are feeling about their individual finances, and the broader economy. It rose by 2.5 per cent in November, indicating a positive trend. Westpac also surveyed people’s spending intentions for this Christmas. 11.5 per cent expected to spend more this year than they had in previous years, while 32.5 per cent stated they would likely be spending less.

There is still a lot of uncertainty in the air, which a high unemployment rate adding to this. As the Jobkeeper payment reduction comes into effect, we may see more people dropping back on their spending as a result.

Of course, retailers have everything crossed that a big spend is on the cards. After such a volatile year nothing is been taken for granted in these unusual times. What are options are there for businesses and individuals who are currently doing it tough?

jobkeeper

Extra Help

If you are finding money is a little stretched this year, there are plenty of options available. From looking at getting business loans to keep your business afloat going into the new year, to personal loans for families needing a little cash injection over the holiday period.

Australian Lending Centre can assess your individual circumstances and help you find the right loan for your needs. We have a wide range of different loans, from short-term to long-term, depending on what you are after. It could be just what you need to tide you over into the New Year, and to help give the economy the push it needs this Christmas season. Merry Christmas and happy shopping!

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Debt Management News

What Does Predatory Lending Mean?

Finding yourself in financial difficulty is a horrible place to be. Feeling vulnerable and lacking hope, you might have found yourself reaching out for a loan that sounds too good to be true. Lenders are often so willing to help that they brush off your questions and concerns and chase you till you sign on the dotted line. Only once the paperwork has been done do you realise you cannot possibly repay the loan in the terms provided. You may have fallen victim to predatory lending.

What does predatory lending mean? Predatory lending is where a lender leverages the borrower’s circumstances for their own financial benefit. They do this by enticing, inducing and assisting the borrower to sign up for a loan they cannot reasonably repay. They then make money through increased sign-ups, kickbacks and high fees. Predatory lenders tend to seek out the elderly, low-income families, subprime borrowers (people with low credit scores) and those in financial distress.

Taking advantage of vulnerable clients is illegal and regulated by ASIC. Chapter 3 of the National Consumer Credit Protection Act 2009 states that: “Credit licensees must comply with the responsible lending conduct obligations”.

beware of predatory lending

What Are Some Examples Of Predatory Lending?

A lender or broker who looks at your assets more than your ability to repay a loan can be considered predatory. They are knowingly placing you in a position of financial distress. High fees leveraged for late repayments, penalty interest rates or seizure of assets can all be considered predatory. Even pushing “essential services” that are not actually required can be deemed predatory and are illegal. This includes insurances linked to credit cards.

Characteristics Of A Predatory Loan

Unsure if you are trapped in a predatory loan, or if you have potentially been offered one? What does predatory lending mean and what does it look like? Below are some key check-points to look out for.

examples of predatory lending
  • High penalties for paying a loan out early. Prohibiting you from refinancing or closing the loan, sometimes for a period of many years.
  • Inflated interest rates from brokers. Some lenders incentivise brokers to charge above the usual interest with what they call a ‘yield-spread-premium’. Ask your broker if the lender is offering this to them.
  • Adjustable interest rates that only go up. Continual rate rises that can mean you never get on top of repayments.
  • Steering and targeting. Broker or lenders who contact you to offer credit and loans, brush aside your low credit rating or try to rush and coerce you into signing.
  • Hidden charges. Unscrupulous lenders make their loans sound more appealing by downplaying or hiding fees, charges and taxes.
  • Offers to ‘flip’ your loan. Refinancing repeatedly damages your credit rating and can end up costing thousands in fees and charges.
  • Future promises. Lenders who sell you a poor loan product but promise to ‘fix’ any issues down the line.
  • Balloon payments. Large chunks of the loan that you are required to repay at intervals for the life of the loan.
predatory lending

What Does Predatory Lending Mean For You?

If you feel that you are a victim of predatory lending there are steps you can take to get help.

  1. Report the lender. Contact the Australian Financial Complaints Authority (AFCA)
  2. Refinance via a licensed broker or bank. There are a number of reputable, trusted lenders who can help to refinance your loan for you and turn your negative financial situation around. Australian Lending Centre is dedicated to finding loan products which suit our client’s individual needs.
  3. Sue the lender. In some instances, you may find there are other victims of the lender who are willing to join you in a class-action suit. Placing more pressure on the lender.  
  4. Implement the act of rescission. Whereby you can exit the contract by demonstrating it was offered under misrepresentation or concealment. 

 How To Avoid Predatory Lending

Always shop around and only deal with licensed brokers. It is also important to read reviews on lenders from current and past borrowers. Choose only a reputable lender.  You should also ensure you read your contracts thoroughly prior to signing and query anything you do not understand. Engage the help of a solicitor if necessary so that if you do not understand what does predatory lending mean, they can check and advise for you. Additionally, keep your credit score up so that you have more borrowing power.

Being an educated consumer places you in a position of power and much harder to be taken advantage of. Ultimately, if something doesn’t feel right, be confident in your right to say ‘no’ and walk away. You do not owe anything to the broker, they are working for you. 

avoid predatory lending

Know Your Rights And Shop Around

Understanding ‘what does predatory lending mean?’ prior to taking out a loan can save you from falling victim to such a loan. Learn to manage financial challenges and avoid predatory lending. If you do need a loan, even if to consolidate existing debt, only deal with a licensed professional. At the Australian Lending Centre, our commitment is to helping you. From debt consolidation, debt relief, bad credit loans and more – we find solutions to get you back on the path to financial security. We will never take advantage of your situation.

If you need support to escape a predatory loan or get your finances under control, contact the Australian Lending Centre on 1300 138 188.

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News Financial Planning

Jobseeker Changes – Reduction Incoming…

COVID-19 has created unprecedented challenges for Australians. For many, their business’ have been barely able to survive, others have lost employment entirely. As a result, the Australian government instituted specialized support payments – Jobseeker and Jobkeeper. In effect since late March, these support payments will now begin to taper off. With a plan to cease them entirely after Christmas. From 25 September, the criteria for these payments have been tightened and amounts reduced. Phasing out of the Jobkeeper and Jobseeker changes signal a potential economic collapse. In addition, significant financial distress for millions of Australians already struggling. 

JobKeeper and Jobseeker Changes 

Beginning September 25, the JobSeeker maximum fortnightly rate for a single household will drop from $1110 to $810, while JobKeeper is set to be reduced to a maximum of $600 a week from September 28. 

What Are The New Conditions?

To continue to receive support, you must ensure you meet the updated criteria and submit all required information in the period requested.

jobseeker reduce

JobKeeper Changes

  • Show that your actual GST turnover has declined in the September 2020 quarter relative to a comparable period.
  • Have satisfied the original decline in turnover test
  • Pay your eligible employees at least the JobKeeper amount that applies to them each JobKeeper fortnight. 
  • Keep up to date with reporting employee numbers and who is receiving what payments based on the tiered payment system. 

The Australian Treasury offers key updates and requirement details for Jobkeeper payments. 

JobSeeker Changes

  • Taper rates shifted, from September 25th an updated income test will apply. Stipulating a loss of 60 cents for every dollar of income earned above $300 per fortnight. This will apply for recipients of both JobSeeker and Youth Allowance.
  • A minimum of 8 jobs per fortnight will need to be applied for, compared with the previous 4 per fortnight. 
  • Assets tests for JobSeeker will be reintroduced and will apply to new and current recipients of the payment. These had been paused.
  • Your partner’s income will be taken into account. You will lose 27 cents for every dollar they earn above $1165 per fortnight.  
changes to jobseeker

Short Term Solution

Australia’s unemployment at its highest rate this century. Asia-Pacific economist Callam Pickering noted that the official unemployment rate is 9.1 percent, having improved considerably from 11.6 percent in May. However as Ernst & Youngs’ chief economist, Jo Masters has pointed out, that number would be higher still if not for JobKeeper. As within these statistics, there were still 165,000 people counted as employed but working zero hours. In fact, the incentive to work was reduced significantly with the doubling of the jobseeker payment. Some employers reporting challenges in sourcing workers.

With over 70 billion already meted out in support payments in the past six months, its a model that cannot be sustained longer term. Meaning our unemployment levels are set to rise, high level unemployment goes hand in hand with economic collapse. 

The second phase of subsidy payments will continue until December 2020, at which time more reductions are anticipated. 

What This Means For Australia’s Economy

For the past six months, Australian businesses and individuals have been receiving support payments. Keeping them either employed in businesses that would have otherwise already folded, or paying living expenses while they searched for work. 

The expectation is now that a significant number of businesses will now inevitably close, pushing unemployment even higher. This also places millions of Australians in financial difficulty. Pair this with the end of ‘mortgage’ holidays and moratoriums on repayments of loans and credit cards and it signals disaster. 

While a cut in government spending seems like a smart decision in the long-term, it is estimated it will cost our economy close to 31 billion. Cutting the Jobseeker and Jobkeeper will further reduce our GDP and employment. 

With less household spending possible, consumption of goods decreases, further impacting our economic recovery. Analysis by Deloitte Access Economics has determined this reduction in spending will lead to the loss of a further 145,000 full-time jobs over the next two years.

jobseeker change

Found Yourself In Financial Difficulty?

Are the jobseeker changes or shifts in jobkeeper eligibility going to cause you financial hardship? You should speak to the experts at The Australian Lending Centre. We can support you to refinance, take out short term loans, enter debt management agreements, and more. 

Don’t lose sleep wondering about the next steps and fearing your finances. Our expert staff can help you assess your situation and come up with solutions. Our goal is to help you manage this challenging period and find a path forward. Managing your debts may be the key to surviving the extended challenges we face economically due to COVID-19. 

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News

Australian Economy 2020

If there is one thing on everyone’s mind at the moment in the midst of the global pandemic, it’s the health and safety of the entire nation. Coming in a close second is the state of the Australian Economy 2020. The economy took a huge hit as we saw many businesses forced to close while we were sent into lockdown in March, resulting in close to one million Australians finding themselves unemployed and even more with significantly reduced work hours. As we slowly rebuild our lives post lockdown, the fear of a second lockdown is ever imminent, and currently underway in Melbourne. What affect will this have on the Australian economy, and what can we expect to see in the coming months?

How Has The Australian Economy Being Impacted in 2020

While we all rung in the New Year with high hopes of what was to come, we woke up to the news of the South Coast fires that tore through entire communities. Up until February, these out of control fires ravaged Australia, crippling communities and impacting the economy, with many tourists cancelling trips. Just as things started to improve, a global pandemic was set to send Australia into another spin. By the end of March, non-essential businesses were forced to close, leaving many Australians out of work as we entered into lockdown for six weeks. While we have reopened again, it is far from over, with many businesses struggling to make ends meet. So where does this leave the Australian economy in 2020?

economy 2020

Helping the Australian Economy 2020

Treasurer Josh Frydenberg has spoken out and revealed exactly what this pandemic has cost our country. An Australian economy 2020 update shows our budget deficit will hit the $184 billion mark this financial year, which is the biggest blow out since World War II. As the economy took a major hit, the Australian Government stepped up with a number of support packages to keep businesses afloat and help the economy as much as possible. These include the JobKeeper and Jobseeker programs that have become lifelines for businesses and individuals alike. However, these programs are set to end in October this year, threatening to create the fiscal cliff.

What Is The Fiscal Cliff?

When the funding is cut off towards the end of this year, many Australian people and businesses are going to feel the hit. This will then result in a big hole in economic activity, as people tighten their belt buckles, instead of spending money to help the economy. On 22 July, the Government announced an extension of the JobKeeper program until March, under new conditions and with smaller amounts of cash available. While this has helped to lessen the expected fiscal drop, it won’t prevent it.

australian economy

The New JobKeeper

So what exactly has changed under the new JobKeeper payments and what impact will this have on the Australian economy in 2020? Right now, $1500 is being paid fortnight to eligible Australians, with more than $30 billion paid out to date. From September 28, two-tier payments are beginning based on pre-COVID hours. This is $1200 a fortnight for workers on 20 or more hours and $750 a fortnight for those on less than 20 hours. From January 4, this top-tier payment will be reduced to $1000 and second-tier reduced to $650.

Looking At Australia’s Unemployment Rate

Between March and May, 870,000 jobs were lost, while more than one million Australia had their working hours reduced. The unemployment rate is now up at 7.4 percent and is expected to rise before the year is out. The Government has spent unprecedented amounts of money already, and The Grattan Institute has estimated it would cost $70 to $90 billion a year over the next two years to get that figure back to under 5 percent. It’s no secret that the impact of the Coronavirus is far-reaching, and we are still yet to find ourselves out of the woods. Melbourne has recently re-entered a second lockdown amid an escalating number of cases across their city, while Sydney is under the threat of another lockdown with numbers increasing daily. Another hit to the economy could escalate these huge figures even further, with the debt and deficit rising.

What Next?

If you have found yourself in a position of being unable to make ends meet, then it is worth considering taking out a loan to help tide you over. At Australian Lending Centre, we can find the right loan for your personal needs to get you back on track and ensure you stay afloat amidst the looming global pandemic. Right now, getting back into the workforce is a difficult feat. Even with Government payments, it can be hard to get by. A loan is a great way to tide you over in these times. Speak to one of our experts today.

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News Financial Planning

Risk of Withdrawing Super Early

The entire world has been affected by the global pandemic, COVID-19. Businesses have closed and many people have lost their jobs. In Australia, almost one million people have found themselves out of work as a direct result of the virus. These people face expenses including mortgages, rent, groceries, and bills to pay. Yet now with little or no income to rely on, times are harder than ever.

While the Government released both the Job Keeper and JobSeeker payments to help out, they also gave Australians early access to their Super to keep them afloat. While this seems like a great initiative, there are of course risks involved that need to be weighed up. So what is the risk of withdrawing Super early?

Accessing Your Super Early

Those who have been affected financially by the COVID-19 pandemic can now access their Super early. Eligible Australian citizens are able to access $10,000 for the 2020-21 financial year. To be eligible, you must be:

  • Unemployed
  • Eligible for JobSeeker Payment, Youth Allowance, Parenting Payment, Special Benefit, Farm Household Allowance.

Plus, on or after January 1 2020, either:

  • Made redundant.
  • Had your working hours reduced by 20% or more.
  • Were a sole trader and your business was suspended or there was a decrease in turnover of 20% or more.

Already, about 2.3 million Australians have gone down this route. This is in an effort to get the financial help they need during the pandemic. So what is the risk of withdrawing Super early?

withdraw super early

Risk Of Withdrawing Super Early

This may seem like a great idea in theory. However, there is plenty of risk that comes with withdrawing Super early. Here are just some factors to consider before making a decision about whether it is worth it to you:

The dollar amount:

$10,000 may not seem much to you right now. Especially considering how much it can help you out in your current predicament. However, when it comes to the risk of withdrawing Super early, you need to look into the future.  While it may be $10,000 now, what will it look like down the track?

According to Industry Super Australia (ISA) Chief Executive Bernie Dean, a 20-year-old who accesses the full $20,000 available under the scheme (which applied to the financial year that has just ended as well) could lose more than $120,000 from their retirement. For a 40-year-old this works out at $63,000 by retirement. This is a significant cost to factor in when making a decision. That $10,000 has the potential to grow to a much larger amount by retirement.

Life Insurance:

About two-thirds of Australians hold their life insurance through their Superannuation fund. Taking out $10,000 means those who are new to the workforce could be left with nothing in their account. This could mean they are no longer covered by insurance. For others, the amount that can be claimed drops with this withdrawal.

Unnecessary Spending:

Your Superannuation is there for a reason. It is to ensure that you can comfortably retire in the future. Many people accessing their Super early are actually using it on things that don’t need, which is an inherent risk of withdrawing Super early. Recent figures have shown that Australians who have accessed their Super spent nearly $3000 more than normal in the fortnight after receiving it, with about two-thirds of the additional purchases on non-essentials.

Knowing the risk of withdrawing Super early, what are the options?

withdrawing super early

Look At Your Entitlements

The first step is to look at what you are entitled to. As mentioned above, the Australian Government has stepped up during the pandemic to help those who have lost jobs and businesses, with a number of payments, including JobKeeper and JobSeeker. Do your research and see what you can apply for to help you out, before resorting to other measures. It may be enough to keep you on track.

Consider Debt Help

While no-one wants to have to take out a loan to cover their debt, it can be a much better option than accessing your Super early. A loan will not only give you the boost you need to get back on track but knowing you have to repay it in the near future will help prevent any of the unnecessary spending that occurs as a result. Instead, if you pay back your loan on time and meet your repayments, it will actually have a positive effect on your credit score and help you get any additional loans, such as a mortgage, down the track.

Get Debt Help Today

If you are wondering what the right option is for you, then speak to the experts at the Australian Lending Centre today. We offer the best advice for your personal situation and help you get access to the help you need in a way that is right for you.

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News Business Loans Personal Loans

How Does Private Lending Work?

There are a number of reasons you may be looking to steer away from a traditional financial institution and looking at borrowing money from a non-traditional, private lender. Banks can be slow, and the process is often very detailed and time-consuming. All this, and there’s no guarantee that you will be lent the money at the end of it. Greater flexibility and quick turnaround times are sending more and more people to private lenders for their loan needs. So how does private lending work?

How Does Private Lending Work?

A private lender is a non-institutional, also known as a non-bank, individual or company that loans money. Generally, these loans are secured by an asset, such as a deed of trust for a house. The relationship between you and the lender is often a much more direct one than that with which you might have with a bank. You will deal with the lender on an individual level, and not through an institution. Private loans generally have shorter periods on them, and the money is usually borrowed for a specific purpose. This purpose could be for a business, personal use, investment, finance settlement and so on.

There are a number of reasons you might be looking into private lending:

  • Processing time: banks and traditional lenders have much stricter measures in place when it comes to taking out a loan. It can take time to fill out your application and have it approved.
  • Banks said ‘no’: you may have tried to take out a traditional loan with the bank and being knocked back in the process. For this reason, you may be looking at a private loan as an alternative.
  • Low credit score: one thing that can prevent you from taking out a traditional loan is a low credit score. If you have a poor credit history, it can be harder to take out a loan. This is because you are considered a risk. A private lender may be more willing to take a chance on you.
private lending

Advantages of Private Lenders

Whether you are looking at taking out a loan for your business, for yourself, or looking at a new investment opportunity, there are a number of advantages that come with using a private lender:

  1. More personal: the private lender gets to know you and your needs and is likely to understand the struggles you are going through and be willing to help. You aren’t a number to them, but rather a person going through something they may have experienced in the past. Therefore, allowing them to empathise with your situation.
  2. More control: traditional lenders often have set ways loans are carried out and paid off with no room for negotiations. Private lenders are usually more open and flexible to changing the loan terms to suit your direct needs. This may involve monthly repayments instead of fortnightly, or a longer loan period to enable you to pay it back on time.
  3. Less rigid criteria: unlike a bank that looks into your credit score, borrowing history and financial situation to determine if you are worth the risk, a private lender is much more open to your situation. Even if your credit rating is low, they are more likely to offer you better terms than a bank would.
  4. Fast process: unlike traditional financial institutions, the application process for a private loan is often much shorter. In addition to this, the process often comes with more relaxed conditions. This means you can have the money in your hands as quickly as possible.
  5. More flexible: private lenders offer a wide range of loan products which aren’t commonly available in banks. These include bad credit loans, no credit check loans and cash advance loans.

Disadvantages of Private Lenders

Of course, private loans do also come with some disadvantages.

  1. More susceptible to a dip in the financial market: recessions and other major financial downfalls have forced some private lenders to withdraw from the market over the years. This is why it is important to look for well established private lenders. Make sure to look around for those who have been around for a long time. Also, try to determine whether they seem large enough to remain strong. The Australian Lending Centre has been around for 30 years and is one of Australia’s leading private lenders!
  2. Interest rates can be higher: while this is not always the case, interest rates from private lenders are generally higher than those of banks. However, these lower rates from banks don’t outweigh the fact that their application process can be complex, slow and often come with little reward.

Knowing the answer to how does private lending work may have you questioning whether it is a safe option.

taking out a private loan

Is Private Lending Safe?

Private loans can carry a level of risk with them. However, it is important to note that both private lending and traditional lending are regulated thoroughly in Australia. It is just different government regulators that oversee them. Private lenders must abide by the Consumer Credit Code, which governs all credit transactions in Australia.

When you select a private lender, you can rest assured that both you and your finances are protected when entering a transaction. It’s normal to feel concerned or sceptical. After all, taking out a loan is a big deal which takes trust! But so long as you understand how does private lending work before entering an agreement, you will be in control.

Taking Out A Private Loan

Are you looking to reap the benefits that come with taking out a private loan? Speak to the team at Australian Lending Centre. We are Australia’s trusted private lender, offering fast and flexible applications, competitive rates and quick turnaround times. You can be told yes and have the money in your pocket as soon as possible. With over 30 years of specialist experience, our experienced team will assist you the entire way and tailor loans to suit you. Let’s talk through your options and find solutions to help you to reach a positive financial position.

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Interest Rates News

When Will Australian Interest Rates Rise Again?

The global pandemic COVID-19 has had a drastic impact on all industries. People have found themselves out of work, businesses have been forced to close down and people have been self-isolating from home. Australia’s economy has deteriorated under the impact. To protect the economy, Australian interest rates have dropped to rock bottom, however, this can only continue for so long. In this article, we discuss when will Australian interest rates rise again?

The primary response to the crisis has been focused on public health. While the secondary response has been saving what’s left of the Australian economy. Back in March 2020, the Reserve Bank responded by slashing the interest rates to a record low of 0.25 per cent. As we slowly return to life as normal, we are left wondering when will Australian interest rates rise again?

The Current Climate

With the onset of the global pandemic and the situation changing daily, no one could have predicted the impact this health crisis would have globally. Yet, as soon as social distancing laws were placed in Australia, many businesses were forced to shut down. This lead to an immediate 5.5% slump in jobs. Data suggests that 780,000 people found themselves out of work by the beginning of April. Shockingly, restrictions were only introduced on 30 March. In addition to this, wages were said to be down 6.7% in the three weeks following this.

To combat this, the Government introduced the Job Seeker and Job Keeper packages. This was an effort to keep the economy flowing and as many people in employment as possible. The Reserve Bank of Australia also stepped up by slashing interest rates. They now sit at the lowest ever in Australia’s history.

interest rate increase

How Do low Interest Rates Help?

These interest rate changes have a huge impact on everyday Australians. However, the level of impact depends on whether they hold fixed or variable loans. If they hold a fixed loan, they will see no change. But those with variable loans will be able to save plenty of money with a reduced amount of interest charged on their account. This, in turn, impacts on their consumer behaviour. If they are able to free up more money, they will spend it in the economy. As a result, giving it a much-needed boost. It also lowers the cost of taking out a loan. Those struggling with finances during this crisis can use a loan as a viable option to help them out with the loan interest rates.

Now that restrictions have eased with children returning to school and people returning to work, where does that leave interest rates? When will Australian interest rates rise again?

When Will Australian Interest Rates Rise Again?

The simple answer: nobody knows. What we do know is that it is unlikely we will see a further drop in interest rates. But at the same time, they are also unlikely to rise any time soon. Reserve Bank governor Philip Lowe said the bank would hold the cash rate at 0.25 per cent “until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2-3 per cent target band”. While restrictions have eased, life is yet to return to normal. Unfortunately, it could be a long time before we see the economy make a recovery from the effects of the pandemic.

According to Dr Low, this rate could remain in place for years, as the economy slowly builds its way back up again.

At the moment, there are too many unanswered questions to be able to put in place an accurate prediction. With restrictions beginning to ease, we have to wait and see if we are hit with a second wave of the virus. This would result in stricter measures coming back into play. These are all new waters we are navigating. Sadly, it doesn’t look like we should expect things to change anytime soon.

The good news is, now is the perfect time to get your finances in order as much as possible in your situation. You can use the rate cuts to save your money so it is put away for a rainy day, pay off any existing debt while the interest is low, or even refinance your loans into one new low interest rate. Now is the time to start exploring your options.

rise in interest rates

Need Help?

With the current climate, now is a good take a good hard look at your financial situation. From here, you can see what changes you can make to secure your future. Work out which option is the best for your current situation now. From here, you can put a plan into place while the interest rates remain low for the foreseeable future. If you are looking for a helping hand to navigate these waters, contact the experts at Australian Lending Centre. We can help you get on track with your loans. With our assistance, you can capitalise on the low-interest rates.

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News Credit Card Consolidation

Credit Card Reforms 2020

It’s true that many of us have a love/hate relationship when it comes to our credit card. It’s great being able to swipe and pay with ease and offers so much convenience. At the same time, it is easier to spend above our means and get hit with a nasty bill at the end of the month that we may not have budgeted for. While credit cards can be really useful, they can also carry a heavy burden of debt with them. This is why credit card reforms are brought in; to help to protect you from sinking into unmanageable debt.

It is so easy to find yourself in a place of debt, with monthly fees added on top of your spending. The fact is, many people take out credit cards without being aware of how they work. For example, when are the fees applied and how can you manage things when you find yourself in a place of debt? For this reason, it is easy for people to spiral further and further.

Discover what changes the credit card reforms of 2020 have brought to the table and what they mean for you as a consumer.

Background for Credit Card Reforms 2020

The latest credit card reforms came into effect in January 2019.

In July 2018, ASIC released Report 580 Credit card lending in Australia. This found that more than one in six consumers is struggling with credit card debt.

ASIC’s review of credit card lending found:

  • In June 2017 there were almost 550,000 people in arrears. In addition, 930,000 people had persistent debt and an additional 435,000 people were repeatedly repaying small amounts.
  • Consumers carrying balances over time on high-interest rate cards could have saved more than $621 million in interest in 2016–17 if they had carried their balance on a card with a lower interest rate.
  • 63% of consumers did not cancel a card after a balance transfer. A substantial minority of consumers increased their total debt after transferring a balance.

The report made it clear that ASIC expects credit providers to:

  • Take proactive steps to address problematic credit card debt and products that do not suit consumers.
  • Minimise the extra credit provided to consumers who regularly exceed their credit limit.
  • Allocate repayments for all credit cards in the more favourable way required for cards entered into after July 2012.

These are general expectations of lenders, however, they are not legal requirements.

In September 2018, ASIC (the Australian Securities and Investments Commission) set a three-year period to be used by banks and credit providers when assessing a new credit card contract or credit limit increase for consumers. This means that credit providers must not provide a credit card with a credit limit that the consumer can’t repay within three years.

The aim of the 2020 credit card reform is to:

  • Prevent consumers from entering into an unsuitable credit card contract.
  • Ensure consumers have access to suitable credit card contracts.
  • Make it easier for consumers to cancel credit cards.
  • Ban unsolicited credit limit increase invitations (which can lead to people borrowing above their means).

Credit Card 2020 Facts

Here are some credit card facts, sourced from finder.com.

  • There are 14,088,998 credit cards in Australia as of May 2020.
  • Netting a national debt accruing interest of $23 billion.
  • Average credit card purchase: $105.38
  • Average percent of credit limit reached: 29%
  • National Australian spend on credit card purchases each month: $25,023,743,718.
  • 70% of Australian adults own a credit card.
  • Age groups with a credit card:
    • 65.07% are 18-35
    • 82.18% are 35-54
    • 79.84% are 55+.

How Do Credit Reforms Work?

credit card reforms 2020

The three-year period was chosen by ASIC after consulting with several banks and industry bodies. The idea is to ensure that the provider of the credit card is comfortable that you can pay off your credit limit in three years, before approving your application.

Rather than stopping people from being able to take out credit, these credit card reforms 2020 are in place to stop consumers from getting into debt.

Here are some commonly asked questions when it comes to the credit card reforms 2020:

Can I still take out a credit card?

Yes! You will still have the flexibility to make a low credit card repayment each month. The three-year period was designed to help consumers needing larger loans to have longer repayment options available.

How do banks and lenders assess whether I can pay back my card?

Each institution will have its own processes in place for determining this. This may involve looking at your credit history, including your credit score, along with the current financial situation.

While these credit card reforms 2020 may result in some people not being able to take out a credit card, it is likely only to affect a very small number of people. Consumers are still welcome to shop around for the best deal when taking out a credit card. Hopefully now with the aim of being able to pay them back without getting further and further into debt in the process.

Want to know more about taking out a credit card and how to make the process as easy as possible? The team at Australian Lending Centre can help you out. Simply give us a call or fill out an enquiry form today and get yourself set up on the path to financial stability (and not debt). We can also help you to find out how you will be assessed when it comes to taking out a credit card.

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News Business Loans Financial Planning Short Term Business Loans Short Term Loans

Emergency Business Loans – Risk vs Reward

As we find ourselves in the middle of a global health crisis brought on by COVID-19, there comes a point where protecting physical health comes at the expense of our financial health. Employees at risk of carrying the virus are being forced to stay home. Spending habits have completely changed. The stock market has crashed. The list goes on… But what does this mean for your business? Cashflow is likely to be stretched within any company at this time, particularly within business start-ups. If you don’t have much money in the reserves then how can you keep your business afloat if the worst does happen? Emergency Business Loans can provide a fast source of income for when things don’t go to plan. This sounds great, but what are the risks?

What Are Emergency Business Loans?

Emergency business loans can provide a fast source of income to give your business the cash injection it needs during tough times. They are usually granted quickly and you don’t always need a great credit score in order to be approved. But they do often come at a cost, including higher interest rates than a standard loan. Emergency loans come in many forms. These include unsecured personal loans, credit card cash advance loans, payday loans and even pawnshop loans.

Emergency personal loans

The great thing about emergency business loans is that they can be processed extremely fast. You can expect to receive an emergency business loan within days of approval. Depending upon your credit score, you might qualify for an unsecured personal loan. This means that the loan will not be secured against any assets, such as property or a motor vehicle. Personal loans usually have fixed interest rates and can be paid back over a set period of time. Before taking out an emergency personal loan, you should first ensure that you will have the funds available to pay it back, otherwise, you will wind up in a worst financial position than you started in, along with your credit history taking a battering.

Emergency cash advance loans

It is possible to use the remaining balance on a credit card to take out as a short-term loan. This will mean a higher interest rate than normal and this rate will also be relative to how much you take out. So be wary of how much you do borrow via a cash advance loan.

Emergency payday loans

Unless you’re expecting an influx in cash in the very near future but are in a desperate and immediate need for cash to tie you over, for the time being, a payday loan is a risky option. APR’s can be as high as 400% and need repaying in full, rather than in instalments. This should be a last resort option. It’s easy to become trapped in an endless cycle of re-borrowing in order to pay the last payday loan off.

Emergency pawn loan

Another last-ditch option here. You can have personal items valued by a pawnbroker, of which they will use as security in order to back the loan. And if you find yourself unable to repay the loan, your pawned item will be listed for sale.

Are There Alternatives to Emergency Business Loans?

Your personal credit score will not be affected by your business loans. Nonetheless, you still need to submit your personal credit rating. You also need to prove your revenue for a year or two. Banks have tightened their lending criteria in recent times and often require financial history or in-depth account records to assess the capacity of the business to handle their financial obligations. This means that applying for emergency business loans through a bank can be a tedious, time-consuming process. For this reason, if you need funds fast, then banks aren’t a great option.

Emergency business loans may come at a higher cost for borrowers with no proof of income and a poor credit rating. When this happens, it is advisable to search for other options. Here are two alternatives which could help you establish or maintain your business especially when there is an urgent need for funds:

Line of Credit

Do you have a business account with a bank, but don’t qualify for its traditional business loan? You can apply for a line of credit instead. A line of credit enables you to access extra money whenever you need it. This is because they don’t have a fixed term, unlike personal loans. So, you can use it without applying for another loan. You also only pay interest on the amount you have borrowed, not your entire credit limit. However, usually, interest rates are usually variable with lines of credit, meaning that they can fluctuate up or down. You also can’t expect a quick turnaround with a line of credit because it may take weeks before it gets approved. Yet, it can still be a very useful resource for future business emergencies.

Specialised Lenders

Specialised lenders like Australian Lending Centre cater to businesses that do not qualify for traditional emergency business loans. ALC understands that business must continue as usual despite any financial drawbacks.

Considerations Before Taking Out an Emergency Business Loan

If you want your business to keep operating, you need the right funding to pull you out of problematic financial situations. There are also some management decisions that require immediate cash to sustain growth and avoid serious fallbacks.

What are the things to keep in mind when applying for emergency business loans?

Determine the business’s needs and the amount you need to meet it

It is important to have a clear idea of what you really need before you sign the loan application form. It is very easy to lose track of what you intended to do from the start if you don’t have a clear understanding of your needs. Remember that the amount must not be greatly higher than your actual needs. When running a business, it’s important to remember that the costs must be lower than the profit. Otherwise, you will end up spending more than what you actually earned and your business will suffer.

Review your credit history

Have you missed or been late on some of your previous debt repayments? If so, why did it happen? Before you apply for an additional loan, make sure that you have a good budget in place to avoid repeating the same mistake.

Specialised lenders may offer bad credit business loans, meaning they can still approve your loan application despite negative credit history. But reviewing your credit file is good to practise. You may find that there are defaults or judgements which have been incorrectly listed. So, before you send your business loan application, make sure that your credit file is accurate and up to date. Companies such as Clean Credit are able to quickly and easily assess your credit file and repair it if required.

Study your financing options

Specialised lenders may offer better terms than traditional banks, especially if you don’t have a stellar credit rating. Review the company and its loan products, and compare them with other financing institutes. Check if the financing procedures are safe and secure and if you will be able to save more money in the process. It is also important to talk with the loan officer and ask about the details of the loan, including its comprehensive terms and conditions.

Always consider your business plan when applying for a loan – make sure that the amount you borrow and the financing agreement will support your plans. Use every cent you get to support your goals and to build a solid credit history so that you can quickly access business loans with better rates in the near future.

Emergency business loans from specialised lenders are usually approved between 24 hours and 7 days – so it is advised to create a budget before you send in your loan application. Not only will it ensure that you will use the money exactly as you planned, but it will also keep you from defaulting on your loan repayments.

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News Personal Loans

The difference between Non-Bank Lenders and Traditional Lenders

Years and years ago, if you needed a loan, you went straight to the bank to assess your available options. These days, non-bank lenders have emerged, offering a legitimate alternative to traditional lenders, and adding a competitive edge to loan marketing.

Depending on your circumstances, it may help you to step away from traditional lenders and hunt for a non-bank lender. But do you know exactly what the difference is between non-bank lenders and traditional lenders?

We will take you through both options and look at exactly how they differ in terms of what they offer to you, so you can judge which one would best meet your current needs.

What Are Non-Bank Lenders?

Essentially, non-bank lenders are exactly what you think. Non-bank lenders are alternative lenders who are not traditional banks. They don’t have a banking license and are not a mutual, ie a bank, a building society or a credit union. Nonbank lenders are called Authorised Deposit Institutions, or ADIs.

Unlike banks, they can’t accept deposits, so they have to source their money from elsewhere. They often take out a loan from the bank at wholesale rates and then lend this money on for a profit.

What are Traditional Lenders?

Traditional lenders refers to banks and other ADIs defined above. They have been the source of loans throughout history, and only recently has this turned around with the proliferation of non-bank lenders entering the market.

They are regulated very differently to non-bank lenders. Banks are largely regulated by the Australia Prudential Regulatory Authority (APRA), while non-bank lenders are regulated by the Australia Securities & Investments Commission (ASIC).

Benefits of Using a Non-bank Lender

While choosing to go with a non-bank lender may not be the obvious choice, there are a number of benefits that come with using one.Lower interest rates: They borrow their funds at wholesale prices, which offers them a larger margin to work with than the banks, and can often mean they have lower interest rates than the banks. They also have limited fees as they don’t have any of the overhead costs that traditional lenders face.

Regulations: being subject to different regulations means non-banks are often a lot more flexible when it comes to lending. This enables them to tailor the process to specifically meet your needs.

Take on high risk

Whether you have a bad credit history you are trying to repair, or a business start-up, non0bank lenders are more likely to take a risk on you than traditional lenders.

Better customer service

As they are smaller than the banks, non-bank lenders often offer a more personalised approach to their customer service, so you will receive more attention to your loan and what you want out of it.

Lower down payment requirements

While banks take about 20% down payment on mortgage loans, non-bank lenders take a lot less, sitting at about 3.5%. For those who have been turned away by the bank, this is a great option to make owning their own home a possibility.

Faster approval process

With fewer hoops to jump through, non-bank lenders have a much faster approval process than traditional lenders, so you have the money in your hands even faster.

Specialists

Often, non-bank lenders can specialise in a particular loan. While traditional lenders offer an array of financial services, by specialising in just one, non-bank lends have a greater insight into that type of loan and can help you out more.

Benefits of Using a Traditional Lender

There are also some benefits that come with using a traditional lender that shouldn’t be overlooked.

Security

One of the biggest, is course, security. The banks are well-established institutions with a degree of trust built into their name. Many people feel safer with this option and sticking to what they know – especially if they already bank with them.

Less vulnerable

As banks are much larger than non-bank lenders, there is a perception that they aren’t as vulnerable to any economic hardship that may come about.

Which One Is Right For Me?

Many people perceive that traditional lenders are the best and safest option, especially when it comes to taking out a big loan, such as a home loan. This just isn’t the case anymore, and by not considering all your options, you are limiting yourself and potentially missing out on the right fit for you.

Loans Based Upon Your Unique Situation

Working out which option is best for you really does come down to your individual circumstances. You need to make a choice based on what you need the money for, what your credit situation currently is, and which service is more compatible with your needs. Shop around and find the best option for you.

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News

What Is The Low And Middle Income Tax Offset (LMITO)?

If you have lodged, or are yet to lodge your tax return you may, you may be happy to know that your tax return could be $1,080 bigger. This bundle of joy comes in the form of the low and middle-income tax offset, which will be handed out to Australian taxpayers earning up to $126,000 a year.

What is the low and middle tax offset?

In the 2019-2020 Federal budget, the Coalition Government announced its intention to revise the Personal Income Tax Plan. The proposal has now passed Parliament and has started to roll out across this year’s tax returns.

The low and middle-income tax offset is designed to help Australians lower the amount of tax they have to pay. As an offset, it will directly reduce the amount of tax payable. Unfortunately, the LMITO will not reduce the Medicare Levy for taxpayers, but it will reward over 70% percent of hard-working Australians with some extra cash.

Are you eligible for LMITO?

With approximately 650,000 Australians lodging their tax return in the first week of July, it is clear that many are already rushing to claim the tax offset. The ATO also estimates that 4.5 million Australians will be eligible to claim the full LMITO of $1,080, with another 5.6 million receiving partial payment. Whether you are eligible is entirely up to your taxable income.

LMITO taxable income thresholds

The following thresholds apply for the 2018/2019 financial year

alc table 1 100719

Example: Oscar

Over the 2018/2019 financial year, Oscar will earn a taxable income of $70,000.

Oscar will receive the full refund of $1,080.

Example: Shannon

Shannon is a paralegal working at a law firm in the CBD. Her taxable income for the 2018/2019 financial year is $47,000. Her LMITO will be calculated as follows;

$255 + (7.5% x ($47,000 – $37,000))

= $255 + (7.5% x $10,000)

$255 + $750

= $1,005

Shannon will be entitled to receive a refund of $1,005

Example: Jason

This financial year Jason will earn a taxable income of $108,000. His LMITO will be calculated as follows;

$1,080 – (3% x ($108,000 – $90000))

= $1,080 – (3% x $18,000)

$1,080 – $540

= $540

LMITO =$540

How do I get my LMITO?

If you are eligible for the tax offset, the refund will automatically reflect on your tax refund. The money will be deposited into your nominated bank account. According to the ATO, you do not need to request an amendment.

What’s next?

The government’s tax reform is based around two more stages of stage reform, beginning in 2022-23 and the final reform in 2024-25.

Low Income Tax Offset: 2022/2023

Future changes to the low income tax offset

Some will benefit more than others. High-income earners will benefit as they will receive a larger tax cut. For example, in the third stage of the government’s tax plans, a high-income earner receiving $20, 0000 may receive an offset of $11,640.

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Business Loans Debt Consolidation Low Doc Loans News

The Rise Of Non-Bank Lenders

There was once a time where if you needed a loan, you only visited a bank.  Fortunately, times have changed.

Yes, you can still go to a bank but there are now alternative; more convenient options. Non-Bank Lenders offer legitimate and competitive loans that are fast and flexible. Battling against traditional banks, Non-Bank lenders have created a competitive environment for lending in Australia.

What is a non-bank lender?

Non-bank lenders are a lender or financial institution who do not hold an Australian Banking License. Strictly speaking, they are not a bank, building society or a credit union. Non-bank lenders typically source their funds from wholesale funds either in Australia or overseas markets. They lend out these funds, with a margin. Depending on the size of the lender, they may offer mortgage, personal loans, commercial or business loans.

One of the key difference between traditional banks and non-bank lenders is that Non-bank lenders are not authorised to accept deposits from customers. Banks, building societies and credit unions are considered as authorised deposit institutions (ADI’s). They are regulated by APRA (Australia’s Prudential Regulatory Authority) and ASIC (Australian Securities Investments Commission). Non-bank lenders cannot accept deposits from consumers. They are regulated by ASIC.

The history of non-bank lenders

The history of non bank lenders

Australia has a sophisticated, highly regulated and competitive financial system. There was once a time where if you wanted a loan, your only option was to visit your big bank. The process was long and draining.  If you’re your income was low, you were more than likely denied for a home loan.

After the first half of the 1980s, deregulation began to slowly make its way into the market.  In the 1990s, a number of non- bank lender such as Australian Lending Centre began to enter the market. These alternative forms of lending offered Australians with lower interest rates than the big banks.

Following the Global Financial Crisis, Non-Bank Lenders were forced to source alternative forms of funding. As the markets became dry, non-bank lenders even turned to the big banks for funding.

The past few years have seen a proliferation in Non-bank lenders. In 2018, Non-bank lenders reached an all-time high of 11 percent of the market. As banks move towards more responsible lending, they are tightening their lending practices. So if you are sick of getting rejected for a loan, there are alternative options out there. Consumers are becoming more wary of this and have been exploring non-bank lending options.

The Advantages and Disadvantages of using non-bank lenders

Advantages and disadvantages of non- bank lenders

Is it safe to use a non-bank lender?

Absolutely. Non-bank lenders are safe to use. It is important to do your research beforehand. Alternative lending has evolved over the past decade. Make sure to find a lender that is not connected with bank failures. Find a reputable and well-established lender that offers a personalised loan for your financial situation.

What happens if a small lender collapses?

  • If the lender is a small agency, they may be acquired by a larger well-established lending agency
  • A larger financial institution may buy out the smaller lender
  • The government may step in and provide financial assistance. This will come through the Guarantee scheme for large deposits and wholesale funding.

Choosing the right lender

Alternative lenders such as Australian Lending Centre have helped thousands of Australians, find the ideal loan. We have a committed team of experts that specialise in providing you with the right loan. Our goal is to help you stay on track.

To learn more about the Australian Lending Centre, click here.

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News Debt Consolidation Debt Management Financial Fitness Financial Planning

Fast Loans and the Fastest Ways to Repay Them

When you need cold cash now, fast loans can be your best bet. Fast loans are quick and easy to obtain. Lenders can process loan applications within 24 hours meaning you can have your funds in your account overnight.

Whilst fast loans may be your saving grace, how can you repay your loan back quickly?

Here are some tips for paying back your loan faster

1. Pay more

If you can afford it, put in larger payments each month to pay off the principal more quickly. For example, $2500 fast loan with 6.8 % interest with a 10-year payback period would cost $28.8 a month. Making $70 payment on a monthly basis instead of $28.8 enables you to repay the fast loan in just over 36 months. By paying the principal more quickly, you will also pay for less on interest.

2. Make additional payments

The less you owe, the less interest that you will be charged. If you are able to budget effectively; you may be able to make additional payments to your fast loan.

3. Create a plan to pare your fast loans

Know exactly when your fast loans will end. Next, create a goal to pay it off within a specific period of time, commit to it and pay it according to the repayment plan. Make it a routine to pay it off monthly. If you’re facing difficulty in coming up with the monthly payments, create a budget and cut back on your expenses. This way, you can lift your debt obligations off your shoulder faster than ever.

4. Automate savings

Automatically transferring money into alternative accounts is a great way of saving that extra cash. Rather than spending money on trivial things such as movie tickets, or that unhealthy meal; automatic payments can help you set aside that extra cash to pay off your debt.  Make sure that you will only use that account for paying back your fast loans and other types of debt. This will require sacrifice in certain areas, but it will ensure that you are one step closer towards financial freedom.

With the growing wave of cryptocurrencies such as Bitcoin and Litecoin; some experts have suggested investing your extra savings into crypto. This is an extremely volatile and unpredictable form of investment that we do not recommend. Many experts compare cryptocurrency as a form of gambling. Whilst, it may seem as though there are immediate increases in profits; you may lose all your hard-earned savings in a second.

Hide your credit card in a safe place

Don’t be a victim of credit card theft. With easy access to your credit cards via pay pass; strangers who have access to a lost credit card can easily tap on purchases less than $100. Keep your credit card securely in your wallet. If you lend your card to friends or family, make sure you keep track of any transactions online.

Keep your phone in your pocket. 

The same rule applies to your mobile phone. With the rise of Apple Pay, you can purchase your transactions through your mobile phone. Make sure that you keep your phone locked with a passcode so that strangers cannot make any payments without facial recognition or a passcode.

5. Close some credit cards

Having them on your wallet may tempt you to spend more. Leave only the low-interest credit cards for your urgent needs.

6. Consolidate your debts

One of the best ways of ensuring that you continue to pay off your loan quickly is to consolidate your debts into one neat and tidy bundle. This will also protect you against the rising interest rates across different loans. This will benefit you in the long run; whilst making it easier to manage your debts.

7. Be proactive by increasing your income

Earning cash while dealing with your debts is a good way to stay proactive about overcoming debts. You don’t only generate wealth to pay for your loans; you also build your nest egg. If you can put away $100 every month out of your income, that would be $1,200 annual savings.

At the Australian Lending Centre, we can help you avail of our easy-to-pay fast loans and our debt management plans. We can help you strengthen your ability to repay your loans and live a financially secure life. It takes discipline and planning, but you can surely do it.

Contact Australian Lending Centre to get back on track. 

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News Financial Planning Personal Loans

Private Lenders: An Alternative Source of Financing

Whenever Aussies need a loan to finance a new car or house they go to the bank. Still, they seem to forget that there are also alternative sources of financing in the form of private lending. But what are private lenders and why should someone consider these alternative sources of financing when there are plenty of banks?

Sometimes, traditional banks don’t always approve your loan application due to many different reasons, so people have to look for alternative sources. With a private lender, maybe you will finally get that new car you have always wanted.

What Are Private Lenders?

They can be either an organisation or a private individual. Unlike traditional funding sources, like banks, private lenders don’t have traditional qualifying systems, meaning that getting access to a loan is much easier.

However, because of its “different” nature of funding, lenders come with higher risks for both the borrower and the lender.

What Are the Benefits?

To begin with, private lenders can easily approve your request for a loan. In other words, if you have bad credit or are self-employed or cannot provide proof of your income, a private lender may be more accessible when it comes to requirements. So, no matter your income and your credit score, a private lender will get you the loan you need.

Another reason for applying for private funding is due to the straightforward process they have. Unlike traditional lenders, the private ones will accept your request very fast. Not only that, but your loan could be available right after your application is approved. This can bring a lot of advantages if you are on a tight schedule.

drawbacks

Drawbacks of Using Private Lenders

It almost sounds too good to be true, but private lenders do come with a set of drawbacks that can make them inaccessible to some Aussies.

The first thing to know is that their rates are typically higher than those of traditional lenders. This is how they compensate for the increased risk and they will have high interest rates for those with bad credit.

Some lenders may feature high fees, from the start until the finish of the loan term. In any case, be sure that you know what you are paying for.

Another drawback is that some loans are offered for shorter terms in comparison to what traditional lenders offer. This happens especially when it comes to mortgages. When conventional mortgages have a twenty-five to thirty year terms, private lenders offer smaller mortgages that just fill the gap until securing more traditional finance.

The private mortgages can also be used to cover needs like the construction of a house. They can also cover for the period between purchasing a house and selling one. The term on these mortgages is one or two years, which means that you will have to move fast to pay the loan back.

Another thing you should know about private lenders and their services is that some of them do not offer the same features as traditional lenders do. In other words, some loans may lack features such as redraw facilities or offset accounts. So, if you were hoping for these types of features, you might have a problem.

How Can Private Lenders Help Me?

Private lenders can offer you a lot of options when it comes to loans. Here are a couple of them:

  • Caveat loans are fast-settling loans secured against a property. These loans are short, last sixty to ninety days and settle very quickly.
  • Bad credit loans are the ones you need if you have a low credit score. Be careful though; these loans come with high interest rates, so use the money wisely and make sure you pay back the loan fast.
  • Bridging loans can be offered by private lenders and can be used by the customer to build or purchase a new home before the sale of their old home. These loans have a term of twelve months, and they are paid back when the old property is sold, making them quite useful in the long run.
  • Second mortgages are also offered by private lenders. These loans are available for those who already have a mortgage on a property who are in need of extra funds for multiple reasons. Depending on the lender and the loan terms, these loans could have high interest rates and extra fees. With all these factors in mind, any client should think twice before applying for this kind of service. So be very careful if you do.

Conclusion

Private lenders are here to stay, whether you like it or not. They have a lot of advantages in comparison to traditional lending systems, but they also have some drawbacks. At Australian Lending Centre, we offer second mortgages at competitive rates and flexible repayment terms that can be catered to your specific needs. Contact us today for a free assessment via our enquiry form now!

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The Pros and Cons of Dealing with Private Lenders

Selecting the right lender

Selecting the right lender isn’t an easy task. It might seem tempting to think that all are reliable, properly funded and legit. But can you be sure of that? There are pros and cons of private lenders that you should consider before applying for a loan.

There are some things you would expect of a reliable lender that should give you the confidence and reassurance that you’re collaborating with a responsible organisation. Apart from supplying a variety of financial offers, a lender should be entirely upfront and transparent with fees and rates, while providing excellent services.

Unfortunately, most lenders’ marketing strategies focus almost entirely on advertising the most convenient interest rates. That’s why many Aussies look exclusively for the best rate alone, overlooking other aspects. Still, note that the lender that supplies the cheapest rate available doesn’t necessarily facilitate the best overall option for your needs.

As a consumer, you should look beyond a lender’s marketing strategy and choose a lender that considers your needs and has convenient loan offers.

On that note, today we will talk about private lenders vs. banks. Which one is better? What are the pros and cons of choosing private lenders over a bank? This article aims at answering these questions.

Introducing Private Lenders

Who are private lenders and what can they offer you? Private lenders do not hold a banking license. They are not a credit union, nor are they a bank.

The great number of private lenders out there competing against one another could make it challenging for you to find the right one. You shouldn’t make a hasty decision, as alluring as an offer could be, at first glance. This applies when it comes to both banks and private lenders.

The Pros of Private Lenders

  • They provide very competitive rates. In comparison with traditional banks, they facilitate more convenient loan offers.
  • Typically, they have low ongoing and setup costs.
  • Lending criteria are less rigid. Hence, if your credit rating isn’t the best, a private lender might give you a better offer than a traditional bank.
  • They embrace flexibility in the sense that they aim at meeting your specific requirements and needs.
  • Expect a more personalised customer support service. Private lenders also deliver a large niche of loan offers to meet various circumstances. Banks offer slow and often impersonal service.

The Cons of Private Lenders

Non-bank lenders tend to be more vulnerable to altering economic conditions. For instance, when the Global Financial Crisis hit, a range of lenders had to withdraw from the financial market.

Apart from that, some private lenders have a limited service offer. However, that depends on each lender, which is why it’s always best to do your homework before you sign a deal.

Are Private Lenders Reliable?

Private lenders and banks must abide by the same laws, regulations, and rules.  For example, Private Lenders must abide by the Consumer Credit Code. This code governs all credit transactions that take place in Australia.

The code implies that credit providers including banks, private lenders, credit unions, finance companies, and businesses have an obligation to communicate both your rights and responsibilities when you take out a loan of any kind.

What is more, credit providers must transparently disclose relevant information regarding your agreement in a detailed, written contract. The contract should state information about fees, commissions, interest rates, and others that, in the past, have been omitted.

In the same respect, the Australian Securities and Investment Commission requires lenders to be transparent about rates and fees.

When you select a lender, it’s comforting to know that you are protected when it comes to making a significant financial transaction.

A lender should be entirely upfront regarding its fees. If you feel that you cannot trust your lender, then this raises a big question mark.

The Bottom Line

Choosing a private lender over a bank has its advantages and disadvantages. Since you’re armed with the information you needed to make the right decision, now it’s up to you to weigh the elements presented in this article.

If you’re unsure of the lender you should choose, contact us for a free consultation and about what we can offer you. We are entirely transparent regarding our rates and fees, as honest communication is the key to a fruitful collaboration. Apart from carefully selecting your lender, ensure that you don’t make a hasty decision when it comes to the terms of your loan.

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Factors to Consider before Signing a Debt Agreement

A debt agreement is a contract that is legally binding between you and the parties concerned – the creditor, debt collection company or third persons involved. Consequently, each party can legally enforce the terms of the agreement against you if you don’t comply with your contract. Learn about the things to keep in mind before signing a contract that can make or break your finances. Always take serious consideration before signing a debt agreement.

The debt agreement process

When entering into a debt settlement, you have to understand that the creditor expects you to be ready to pay your debts. So, prepare to negotiate a certain sum of money or asset to pay for a percentage of your combined debt. Make sure that you can afford to pay it over a limited period of time. In debt settlement, you don’t pay your creditors directly. Instead, you make repayments to the administrator of your debt agreement.

Negotiation takes a little bit of patience and persistence because creditors also know that once they agree to a particular amount, they cannot recover the full amount of debt anymore. Knowing that they cannot get back the full amount you owe, they may give you a hard time during the negotiation process.

Legalities of your debt agreement

A valid contract is an agreement where all the parties agree to it. Meaning, there is mutual consent between you and your creditor. It must state the object of the contract—or the consideration which is typically a sum of money, or asset paid by the debtor to the creditor. The agreement must not allow you to do something illegal in return of debt forgiveness or reduction of penalties. It is also important to be mentally capacitated to enter into an agreement. You must be mentally sound and at least 18 years old to ensure that you are competent enough to enter into a binding agreement.

negotiations

It is important to note that the object of the contract or the “consideration” must be something to be negotiated upon. An agreement is impartial. It gives you the perfect opportunity to discuss and compromise on the terms of the debt agreement before reaching a final contract that is acceptable to you and your creditor. But, take note that there are non-negotiable contracts, but you can still look for ways to ensure that the terms will be satisfactory not only to your creditor, but to you as well.

The agreement must not contain provisions that disagree with the contract laws in your state. You can talk to an attorney to verify the terms of your contract before signing it. Or, you can educate yourself and check whether there are illegal terms in the contract that will jeopardize not only your finances but your reputation as well.

Negotiation points

Write down your objectives for entering into an agreement. What is your desired outcome? Do you want to pay your debts in full while paying for it at a lower rate? Or, do you intend to let go of your assets to finally eliminate your debt? Before you negotiate a contract, have a specific outcome in mind. For example, if you want to extend the loan term, then you should know exactly how long you would like the loan extension to be.

Before beginning negotiations, you should know where you stand. Are you financially capacitated to respect the terms of the contract? Take note of your financial standing and the surrounding circumstances that may prevent you from abiding by your agreement. It is also important to determine your bottom line. Know the highest repayment amount you can make and the lowest one that you think the creditor can accept.

check-options

Check other options

Do you think it’s time to give up and take up bankruptcy instead? If you have no income, and you’re not in any way capable of making even the minimum repayments because of unemployment, and you can’t meet your daily needs, maybe bankruptcy is a better idea. But, it will definitely ruin your credit score, take away your assets—and probably leave you on the streets. The only upside is that your debts will be eliminated.

If you think you can still get a job, improve your business or get any additional source of money to keep up with a minimum payment each month, debt agreement is a better idea.

It is important to note that debt agreement does not refer to debt consolidation. When you consolidate loans you simply roll your existing debts to a new loan; with lesser monthly repayment, lower interest rates and fees and in one easy payment method each month. While debt consolidation companies sometimes negotiate with creditors to lower the repayment each month, there are companies that simply pay off all the loans and charges a new rate to their customers.

Is debt agreement the right solution to your financial situation right now? Talk to us today!

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How to Get A Loan When You Have Defaults

Everybody needs financial help at some point in their life. But if you have a negative credit file, can you still get financial support? Discover how to get a loan when you have defaults.

Your credit file tells it all. If you have defaulted on your payments to previous lenders and utility companies, these things will be listed on your credit file. While it is effortless for lenders to place default on your credit file, removing it is entirely a different story. You need to go through the dispute process, by contacting the reporting agency, and the credit bureau just to get that defamatory entry out of your credit file.  Many large telco companies and financing institutions don’t care about your reputation as much as they care about their collection. If you cannot pay them right away, then you may have to bear with the consequence of having your loan default reported on your credit file.

There are financing options for people who are seeking out the right loan despite loan defaults. For example, Australian Lending Centre understands that many financing companies easily put defaults on people’s credit files without giving them ample opportunity to recover financially, pay their dues or contest issue that could have otherwise prevented the recording of the default entry. Some lenders also fail to communicate with their customers properly before putting a mark on their credit report.

Common types of unpaid defaults

defaults

Utility Defaults

How many times have you missed your telecommunication bills? What about electric and water bills? Utility bills and telecommunication bills are common types of unpaid defaults. If you want to get a car loan, business loan or any other type of loan, some banking institutions may require you to resolve these debts first. Some financing institutions may disregard these utility defaults and will not require you to pay them first. But, you may have to prepare yourself for questions about why you have these types of defaults, and you may need to present some financial documents showing your capacity to pay the loan despite existing utility defaults.

Lender Defaults

Do you have outstanding defaults to another lender? You may find it difficult to get a loan when you have outstanding defaults to another financier unless you have a valid explanation with pertinent documents to prove it.

Most lenders will want your defaults resolved prior to approving your loan. But, if the amount of the unpaid default is small, lenders may be lenient to you. Still, it is important to prepare some documents that would justify your failure to pay on time. It could be a health emergency or a personal situation that made it difficult for you to settle your loan obligations on the due date. Lenders can show leniency to borrowers who are not naturally neglectful of their debt obligations but were not able to repay the debts for the time being because of uncontrollable or unavoidable situations.

Court Judgments or Writs

Did you fail to settle your loan obligations with a financing company or a collecting agency? Some companies file cases against borrowers in an attempt to recover the amount owed to them. There are also cases like alimony, child support and others that require you to pay a certain sum of money within a definite period of time. Judgment or writ that have become final and executory have to be complied with. Some court judgments may prevent you from getting a loan, especially if you have been declared bankrupt. If your case is still on appeal, you may have to show the lender some documentation that could convince the potential lenders to overlook the default and grant your loan application.

remedies

Remedies in case of unpaid defaults

  1. Get a guarantor. If you want the lenders to grant you the loan despite an unpaid default on your credit, having a guarantor lessens the risk of not being paid back. The lenders can go after your guarantor in case you fail to settle your loan obligations, so having a financially-able guarantor can definitely help. But make sure you don’t put your guarantor at risk of getting defaults for your actions.
  2. Apply for a short-term loan with reasonable interest rates. Not all short-term loans are expensive. In fact, there are low-interest short-term loans designed for people with bad credit. So, even if you have an unpaid default, you still have a chance of getting the loan you need. Just make sure that you enquire about the loan terms by getting a non-obligation credit enquiry. Remember that some loan agreements are deceiving; ask for the exact calculation of the total cost of loan before you sign the contract. Australian Lending Centre can give you a free assessment and the exact figures you are entitled to receive based on your current financial situation.

Do you want to have a free loan assessment to determine what loan product suits your situation? Get the best loan terms by calling Australian Lending Centre today.

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Variable-Based Tips On How To Manage Your Debt

If you’re planning to get a new loan, but you’re not sure if you can repay it on time, here are tips on how to effectively manage your debt, based on 2 financial variables.

Financial success does not depend on the amount of money you have but on specific strategies that apply to your situation. Whether you will use the funds for personal or business purposes-increasing your cash flow is still vital to a successful debt management plan. Debts may increase or decreases depending on your strategy, in the same way as your spending habits influence your cash flow.

You cannot just say that you are going to pay back your debts without some detailed strategy.

The first thing that you can do to manage your debt is to improve the variables that eventually determine your financial capacity to repay. Improving these 3 variables about your debts you will increase cash flow and pay off your debts and improve your finances.

Earnings

How much is your after-tax net income? What about your after-debt repayment income? When computing your free-money, look into your debt to income ratio first.

Your debt income ratio refers to a certain percentage of your monthly gross income that you use to pay debts. It has two classifications: The front-end ratio, or the percentage of income you use to pay for your mortgage, rent, property taxes and other similar housing costs. Second, the back-end ratio, which is the percentage of your income that you pay for all your personal loan and credit card payments and other recurring debt payments, including those covered by the front-end ratio. As long as it is recurring debt, it is still covered by the back-end ratio.

To calculate your debt-to-income ratio, add up all your monthly debt payments. Divide that number by your current monthly income. Get the percentage by multiplying the result by 100. Let’s say if you spend $1000 each month on debt and have a monthly income of $4,000, your debt to income ratio would be 25%.

Increasing your income and at the same time paying your debts can help you lower your debt to income ratio, giving you higher free cash for your other needs. You can also increase your debt payment to quickly pay off your debts until you achieve a zero-debt ratio.

Financial satisfaction

Are you satisfied with your present financial situation? Or, do you find it difficult to meet your monthly payments on your bills?

How much money is enough and well-enough for you? What might be enough to pay all your debts may not be well enough to sustain your lifestyle, pay for your emergency and daily needs and invest for the future. Or, it could be sufficient for you as long as you plan your budget wisely.  Decide how much might be enough for you and your family if you have one to know what number you should definitely try to reach.

Discover more tips on how to manage your debt by talking to our in-house loan experts at Australian Lending Centre today!

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How To Use the Full Potential Of Your No Doc Commercial Loans

It is so easy to get no doc commercial loans but using its full potential to improve your business can be a frustratingly difficult process.

Here are a number of steps you can take that will help you get the best out of your commercial loan.

Get your budget ready

Before you even consider applying for a no doc commercial loans make sure that you know where to spend your money. No-doc lenders don’t need your most recent financials, like tax returns and bank statements. Have your budget prepared first and at your fingertips to ensure that you will use your commercial loans according to your plan.

Know your financial position

Some borrowers consider the borrower’s property and its true market value. They often use three types of property basis for valuation: comparison (the rate of your sales versus your property), capitalization (the rental income of your property). Prepare a 3-year cash flow to help you get a future view of your business assets and your view on capital expenditure as well as other financial issues that could affect your repayment capacity.

Do you have a detailed asset and liability statement? It will help you understand your financial position and hence your suitability for the commercial loan you are trying to find. You can also get your credit report to get a better view of your loan obligations.

Prepare a well-designed business strategy

In order to use the full potential of commercial loans, you must first have prepared a well-designed business strategy. Commercial loans must not be used for personal purposes. Always use the loans according to your original intention. If the amount of loan is higher than your actual business needs, that’s the time that you can use it for personal reasons. This business strategy should be clearly structured and kept in mind when creating a budget.

Simplify your corporate structure. Make it clear, accurate and strong enough to sustain financial issues. Create up to date and accurate plans, especially when they involve major assets which produce substantial income. If your business involves rental property, create a rental schedule which details the property occupied, lease terms, payment schedules and income projections.

Assess your management skills

Remember that sometimes, a financial issue is just one of the signs of poor business management. As the business owner, you are the captain of your ship. It is important to build the right leadership. Even the best employees on hand cannot save you from losing big bucks when you make destructive business decisions. Businesses are active and flourishing if the leaders is at the helm of the game.

What is your relationship with your workers? How does it affect the job performance of your employees?

Bad management decisions can hurt the ROI and push the business into the brink of bankruptcy. Take everything into account when evaluating your management style. Try to get feedback and maybe a suggestion box. You may be surprised by the results.

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Who Can Offer Consolidation Loans?

A debt consolidation loan includes all your existing debt, incorporating a single bill with a new interest rate. The ultimate purpose of consolidation loans is to diminish the numbers of bills you pay on a monthly basis and decrease the total amount of interest rate on your financial obligations. In this article, we discuss what debt consolidation loans are, and who can offer them.

You choose between secured and unsecured consolidation loans. Secured consolidation loans are tied to an additional asset, most of the time, a house or a car.

Generally speaking, secured consolidation loans offer more favourable interest rates. As for unsecured loans, they don’t involve any collateral. This way, you won’t end up losing a physical property if you aren’t able to repay.

Now, moving on to our topic, who can offer consolidation loans?

Specialised Lenders

Specialised lenders are also referred to as finance companies. Typically, they don’t accept deposits like typical credit unions and traditional banks. They pay off your old creditors or send you a monthly bill. Also, you should know that the credit card requirements aren’t as strict as those required by traditional banks. Nonetheless, rates can be higher in the case in which you have middling credit.

Credit Unions

Generally, credit unions also provide debt consolidation loans, with terms varying from 12 to 60 months. Nonetheless, you are required to have excellent credit to qualify for them.

Banks

National and community banks offer unsecured and secured consolidation loans to borrowers that have a relatively positive credit rating. It can be challenging to find a bank that provides a rate lower than 5 per cent. Bear in mind that borrowing limits depend on numerous aspects, and vary by bank. Even so, when it comes to high sums, excellent credit is a necessary condition.

Payday Lenders

Distinct from other types of debt consolidation loans, if you choose an unsecured payday loan, you won’t need a credit check. As opposed to paying off each debt, payday lenders provide you with the sum you need, and you are in control of your debt. Nonetheless, most payday loans come with high-interest rates. They aren’t recommendable in the case of large debt loans. On the same note, your borrowing possibilities will be influenced by your monthly income.

Personal Lines of Credit

Numerous credit unions and banks provide unsecured lines of credit. As a general rule, the rates and limits are the same as those offered by banks. Even so, credit lines don’t necessitate repayment within a fixed timeframe.

In short, debt consolidation can be the answer to many problems. It can aid you to pay off high-interest credit card bills, and other types of debt, rolling each bill into a single monthly payment.

If you use it judiciously, debt consolidation can drastically decrease the total amount of your debt, aiding you to create a substantial budget. You should analyse each option presented above and see which one works for you best. If you know that you need additional guidance in this respect, you should address your concerns to a financial specialist.

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Mortgage Broker vs. Banks: Which Is Better?

The verdict of a mortgage broker vs. banks contest may seem difficult to assess at first glance. Both can help you with good rates on your home loan, but there are some things they do differently. Maybe, after all, you’ll be the one to say who the winner is in the mortgage broker vs. banks competition.

Mortgage Broker vs. Banks – What Does a Broker Do?

A mortgage broker is fundamentally an advisor. This is the person that will investigate whether you are worthy of a loan or not. You guessed it – your credit score matters, but that’s not all. Your income and, subsequently, your ability to pay the loan back will be taken into consideration, as well. If you are eligible, the broker will look for the best offers that suit your needs.

The greatest advantages of using brokers instead of banks are their expertise and the fact that they may not frown at your bad credit. They know a lot of other lenders that can provide you with suitable offers. Because they are not affiliated with any banks, they are sure to find lenders that don’t really care for your stained credit file. They may even be specialised in serving people in predicaments. This particular section in the mortgage broker vs. banks contest is definitely won by the former.

A mild disadvantage when it comes to brokers is their number. There are so many that it may be difficult to choose the best one. Before you call on an agent, make sure that he has been in the business for a long time. Simple research can be very useful. Friends or relatives that previously used brokers to get good deals can also guide you.

What Do Banks Do?

In the same fashion, banks will assess your creditworthiness by having a bank loan officer to manage your files. Banks are often scarier than brokers because of the higher rates and fees. Loan officers have years of experience in banking and finances, in general, so you can rest assured that you’ll get the best rates.

Although banks are not inherently bad, they might prove to be an actual impediment in your way. In contrast with the brokers, banks always look at your credit score. They are not that eager to lend money to people who have a bad credit score.

Another disadvantage is that when you work with a bank, you will be given only the loans that the particular bank is offering. On the other hand, a broker can have access to a wide variety of lenders and loans.

Which One Is Best?

Both have their advantages and disadvantages. If you have bad credit or you want a wider array of options, a mortgage broker is a perfect choice. If you have good credit and the offers of the financial institution would suffice, a bank would do as well.

In other words, the verdict on mortgage broker vs. banks depends on your needs, the cleanliness of your credit and the deal you are trying to get.

If you still have questions, read more about non-bank lenders HERE.

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What You Ought to Know About Credit Card Yearly Fees (Why? Use? Value?)

The questions you ask before getting a credit card have a major effect on how successful your financial strategy becomes. Are the credit card yearly fees worth it? Where will you use the card? What is the value of having a card?

First, what is the value of a credit card? If you lost your card or if it was stolen, your losses can run into thousands to millions of dollars especially if it was used by an identity thief. But, when it comes to the value of the plastic card itself, credit card companies can charge a certain amount for the card replacement. Others replace it for free.

Second, why would you use a credit card? Credit cards actually make sense, if you use it wisely. It can establish and improve your credit record especially if you pay on time; you can get discounts from stores, and it gives you instant money during emergency. There are also rewards; it comes with merchant protection guarantee and insurance on items you purchased with your credit card.

Third, are the credit card yearly fees worth it? This question is applicable to those who want to use credit cards as a tool in rebuilding their credit.

The importance of time-frame matching when getting a credit card

Too often, borrower’s sign up for credit cards without considering the period in which they plan to use the card. For example, let’s say you signed up for a credit card with $1,000 credit limit. You have 12 months in a year to consume it. When are you planning to use it? When will you stop?

Some people use their credit card for everyday purchase while others use it as an emergency fund. Be very clear about the purpose in using a particular card to avoid paying more than what you originally intended when you took the card.

People often take credit cards for long-term use and max out the limits for short-term goals. The problem with this attitude is that it increases your risk of borrowing more than what is necessary. Of course, one or two cash advances or big purchases may happen once in a while but if you do this long enough, you may end up broke. Match your credit cards with a time limit. You’ll be much more comfortable with your finances if you do.

Can I afford to keep this credit card?

Do you have a long-term income to repay your credit card debt? Too often, people take out cards, max them out, fail to pay them off and end up with a bad credit. The way to avoid this situation is to think about your capacity to repay your credit card debt-even with unforeseen financial emergencies, before you get a credit card. Think about the credit card yearly fees, why you would use it, and its overall value.

Credit card consolidation


If you have multiple credit card debts and you want to get rid of them, but your income is not enough to pay them all at once, why not try Australian Lending Centre’s credit card debt consolidation? With a single loan, you can repay all of your debts. You no longer have to worry about the different credit card yearly fees, rates and limits.

Apply now!

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How Are Interest Rates Made? 3 Factors That Increase Loan Interest Rates

Aside from your credit score, did you know lenders sometimes determine interest rate levels depending on the supply and demand of credit? Or that you might be able to get lower interest rates by applying for the same loan in another financing company? In fact, these could be some of the strongest factors that lenders would consider in charging an interest rate on your loan. Let’s discuss these factors that can increase loan interest rates…

Economic factors

Some of the most important basis of the banks in setting their interest rates includes some factors that can either push interest rates lower or higher depending on the lenders’ interest:

  • Gross Domestic Product-The growth of GDP or the monetary measure of Australia’s market value of the final goods and services produced within a specific quarter affects the interest rates of the loan. Australia’s GDP Annual Growth Rate increased by 3.4 per cent from 1960 to the last quarter of 2016. This means, the country’s economy is growing and so is the investment.
  • Inflation– or the continuous increase in the overall price level of goods and services in Australia’s economy over a period of time can result in a decrease in the value of Australian dollars overtime. Since inflation increases the value of consumer goods and services, it will also change interest rates on loans.
  • Interest rate volatility –Lenders watch the wild swings of interest rate closely and take measures to avoid loss of profits. While some borrowers may hold off from applying for financing and postpone important investments, there are those who settle for high-interest loans to address their current financial issues.

Income


Typically, more income results in a lower interest rate. Similarly, if you don’t meet the income requirements, you may find yourself on the higher end of the loan interest rate.

Borrowers with stable income plus a good credit score are most likely to pay back their loans. Some lenders may agree to waiving fees or lowering rates and could end up saving a good amount of money with high income.

Credit report


Another one of the factors which can increase loan interest rates is your credit report. Lenders typically adjust their interest rates when determining how much to give to a specific borrower depending on various factors. After they determine the eligibility of a borrower, they adjust the rates that would best match the borrower. So, if you have an excellent credit your borrowing capacity may increase significantly. When you have a good credit report, your borrowers would consider you as a responsible debtor that can handle more credit. You can also enjoy an attractive rate for your loans when you have a clean credit history.

While people with high credit scores have some bargaining power and lenders will be happy to offer you lower-than-average financing rates, the same thing is not true to those with poor credit rating. Most of the time, only those applicants that lenders believe would be paying back the loan on time enjoy this treatment.

Interest rates are made by creditors based on their own criteria. If you have bad credit and you need cash fast, Australian Lending Centre can provide you with easy-to-pay, low-interest loan solutions.

Contact the Australian Lending Centre today!

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Can Rural Loans Meet The Australian Farmer’s Financing Needs?

Are you planning to take out financing in the form of rural loans to grow your next crop or improve your farm operations? Can it help you become more competitive in the short and long-term?

These are the common financial issues Australian farmers need to deal with…

Expansion

Farmers are facing new challenges and opportunities every single day; not only in maintaining their operations but in providing quality products to feed the growing population In Australia. The challenge is even greater when a company decides to expand its operations worldwide. The cost of producing more crops or animal products while meeting the strict government requirements are financially challenging not only for small farmers but big companies engaged in the agriculture industry.

Expansion could mean bigger lands, stricter government regulation and tests on the company’s ability to survive the fluctuating global economy.

Growing prices of equipment, consumer issues and other factors aside from supply and demand are also major factors to be considered when making financial decisions. But, one of the most prominent concerns of a farmer is the availability of financing and the cost of debt for expansion. Without the right financing, it is difficult to predict business stability and development in the midst of fluctuations in the global market.

Competition

If you want to be competitive, you need adequate cash flow to fund your daily operations. Without it, your business may eventually lead to bankruptcy.

The amount of cash coming in must be higher than the ones going out. If you keep on borrowing just to function, you may end up paying more on interest rates and before you knew it, your business is out. So, if you are not careful in choosing a loan product to maintain your daily operations, you may not be able to compete anymore, but merely survive.

If you want to get a positive cash flow, rural loans may not suffice.  Applying for multiple loans just to have sufficient money for your farm operations cannot solve the financial problem. What a business needs are a sound financial plan that addresses not only the immediate monetary needs but the very reasons why you are having financial difficulty in the first place. That’s where debt relief programs come in. if you want to become more competitive in the agriculture industry, it is vital to work on cash flow problems. Analyze and manage your debts to more effectively solve the cashflow issues.

Debt Consolidation is a better option…

If you have multiple debts, consolidation can help. Those who use a cash advance to pay for their business needs can opt for credit card consolidation. Australia Lending Centre offers other debt relief programs that can help you solve the financial issues of your business right down at its very roots. You can also choose some of the loan products available like business loans, personal loans and debt management to make sure your farm has enough cash each month to cover your financial needs.

Do you have access to rural loans? If not, why not contact the Australian Lending Centre and ask about the loan products that you might find very beneficial for your farming needs? We provide rural loans financing to support you. Apply now!

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What New Borrowers Need To Know About Home Equity Loans

As new borrowers, home equity loans are one of the smartest ways to use your valuable assets.

If you have a home, and you already paid off a portion of that house, then the difference between the value of your home and the total debt you owe is your equity. It is your interest in the said property.

How much can I borrow against my home equity?

You can only borrow the amount which is equivalent to your interest in your property.

For example, you bought a home worth $250,000. You made a 25% down payment and obtained a loan to cover the remaining 80% of the purchase price. The value of your home is $250,000 and your equity or the amount you contributed to the purchase price is only 25% or $62,500.

While the lender secures their interest by getting a lien on your house, you still own it. However, as much as your home equity is concerned, you only “own” 25% of it.

Supposing the market value of your home doubled in the next six months, but you still owe $187,500 (or 80% of the purchase price), your home equity will increase. But, the principal amount of your loan will stay the same. Meaning, while your debt is still $187,500 your original home equity which is $62,500 will double. This is just a simplified computation. Other factors such as accrued interests, fees and penalties will still apply.

How can I build my home equity?

  • Make double payments covering both the principal and the interests
  • Increase your initial down payment on the mortgage. Instead of the standard 20 per cent down payment you can add another 5 per cent to get exactly 25 per cent home equity, or 25% of the market value of your home.
  • Invest in home improvements such as renovations, adding energy-efficient appliances and fixing the plumbing issues.

Credit score and home equity

Before applying for home equity loans, new borrowers must be aware of their credit score. Multiple debts that spiral out of control can swiftly affect your daily life in big ways. Interests may roll over until they become difficult to repay.

Lenders are most likely to approve loan application from individuals with good credit history, or those who have repaid their credit obligations on time. People with good employment record, especially those who were able to stay in the same company for several years are considered more financially stable than self-employed ones. But, people with a low credit score do not have the same privileges as those with excellent credit history. But, if you own a home, you can use its unencumbered value to pay for your current expenses.

If you want to obtain home financing loans with favourable terms and at a lower cost, the Australian Lending Centre can help you. Aside from offering a more appealing rate, they also help you settle your multiple loans through their debt relief programs such as refinance, credit card consolidation, debt relief, debt management and debt agreement services.

Learn more about home equity loans and choose the most suitable loan products to meet your financial needs. Contact the Australian Lending Centre today!

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How To Choose The Best Private Funding (Or Private Lender)

How to choose the best private funding or private lender is not a piece of cake. There is no such thing as one-creditor fits all when it comes to loan options. But, asking the right questions can help you find the best financing company with loan products that best fit your credit situation.

Is private funding the best option for me?


Understand the difference between bank and nonbank lenders. Private are non-institutional lenders lending money to others.

What is the difference between private funding from other types of loans?

The private lender often asks where you will spend the money on, while public lenders such as banks and credit unions categorized loans according to their use. Most of the loans are either secured by a deed of trust or a note.

Private money lenders are there when banks turn down your applications because of poor credit rating, insufficient income or paperwork.  So, while you try to lock up deals for an investment, or while you wait for your next income, private lending can help you get through.

What are the benefits of getting private funding?

If you have a poor credit score, you may find it difficult to obtain a traditional bank loan. But, private lenders like Australian Lending Centre can offer you the following benefits:

  • Quick and easy loan approval for borrowers with  poor credit score
  • More affordable interest rates than credit cards
  • Flexible loan terms

Special caution

Some private lenders make up for the risk of not being repaid by high-risk borrowers with higher interest rates. Some of them issue loans with steep penalties. So, if you pay late or if you choose to prepay your loan, the overall cost of the loan may be more expensive than traditional loans from banks.

Choose a private lender that helps you build your credit rating

If you have a history of late payments on car financing or you always spend over your credit card limits, you’re most likely to have a low credit report rating. As a result, you’ll find it hard to get car financing with lower interest rates and it would become virtually impossible to get a new credit card. Aside from the fact that you will have to pay around 15 per cent higher than the interest rates for the same loan offered to people with excellent credit, many private lenders may also turn down your loan application.

A bad credit report limits your chances of getting private funding. Private lenders are cautious of borrowers with low credit scores and records that indicate poor financial management. But, it doesn’t have to stay that way. There are ways to boost your credit score and fix its negative effects on almost every aspect of your life. In order to achieve this, it is important to choose the right lender who will give you the best private funding.

Australian Lending Centre offers several loan products that can help you gain control of your finances and build your credit score. Their programs are designed to help you get back on your financial track while they help you obtain the money you need for your emergent needs, at a very low cost.

Apply for private funding today!

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What Is A Caveat Loan And Is It Better Than Refinance?

If you have a first mortgage on your house and you obtained a caveat loan, it works as a second security. The caveat would be in your title, and will only be removed when you have fully paid the loan. Simply put, a caveat loan is like a second mortgage, except for the short term, where the loan is secured against a house or any real estate property owned by the borrower. But…is a caveat loan better than refinance?

Caveat loan is usually approved within 24 hours. No valuation is necessary and you can get it regardless of bad credit history. The interest is already prepaid. But, it is not applicable to all borrowers because of the quick settlement feature, which often ranges from 3 to 6 months.

How can I repay a caveat loan?

You can repay it through refinance, sale or any other exit strategy that the caveat lender approves of.

The lenders have their own criteria in determining how you are going to give them their money back at the end of the loan term. If you are selling your asset within 3 months, the caveat loan will be serviced out by the proceeds of the sale.

Does caveat loan settle quicker than a second mortgage?

It depends on the lending agency. The Australian Lending Centre, for example, has a remarkably speedy settlement process for refinancing that settles much quicker than other lenders. They have refinance specialists that help borrowers choose the best refinancing product to help them, get the money they need in the soonest possible time.

Is caveat loan a practical loan alternative?

If you are sure that the buyer of your house would pay before the term of the loan ends, why not? But, if you don’t have a ready-buyer or you simply rely on refinance as your exit strategy, it may be difficult to count on it because you don’t know exactly when that money is really coming in.

I took a caveat loan and its due in a month. But my loan is not yet discharged and the money I am expecting is not yet in my account. What should I do now?

You can give yourself enough flexibility by applying for refinance or short-term loans to pay off your caveat loan before the term ends.

Australian Lending Centre offers mortgage refinancing products with lower repayments and interest rates that would not only allow you to pay off your caveat loan but your multiple debts as well. Its debt consolidation product rolls over high-interest credit card debts, personal loans and other loans.

Caveat loans often come with high-interest rates. If you want to take care of this type of debt easily you can refinance your existing home loan, consolidate your debts and take advantage of ALC’s low variable rate. You can also switch to fixed-rate or lock-in interest rate if you want.

Caveat loan or refinance?

If you don’t want to face the risk of not being able to repay on time, you can instead access the equity in your home through refinancing.

Contact the Australian lending Centre for more information on caveat loans and refinance.

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Tips For Paying Off Overwhelming Credit Card Debt

Do you see nothing but credit card debt when looking at your budget? It’s easy to get overwhelmed in debt, but there are solutions. Here are our top tips for paying off credit card debt.

Extensive loans and consumer debts are becoming a part of our lives. People need money for their daily expenses while in between jobs; others need quick cash when facing emergency situations. Even entrepreneurs need to inject funds to their working capital when cash flow isn’t enough. But, what would happen when you wake up and all you see are unpaid credit card bills, notices from debt collectors and court summons?

Relying on credit cards every time you have cash flow problems can definitely hurt your wallet. But there are some steps you can do to avoid carrying a balance from one month to the next and accumulating hefty interest charges.

1. Make a credit card spreadsheet

Do you want to see how much is your current total debt? What about the average interest rate as well as the average interest you pay each month? If you want to see the total amount you have already paid on your credit cards and the total payment you are making each month on those debt accounts, create a credit card spreadsheet.

Write down the following:

  • Name of your creditors
  • The outstanding balance for each card
  • Interest rates
  • Required minimum monthly payments for each account.

Decide on the maximum possible amount you could put towards paying down all your credit card debts, based on your current budget. Select the repayment strategy that would quickly pay off your debts. Is it snowball or highest interest first?

When deciding which of these methods to use, here are factors to consider:

  • How much interest can I save each month?
  • What is the total amount I will end up paying?
  • How long will it take me to be totally free from debt?

Decide how much money you need to dedicate to each credit card account every month. Write down the total amount of money you want will use to pay down your debts. Determine the portion of that amount you would apply to each card.

2. Consolidate

One of our top tips for paying off credit card debt is in the form on debt consolidation. It is not easy to manage multiple debts, especially if you don’t have enough money to make minimum payments each month. If you feel overwhelmed by debts and you are missing monthly payments, debt consolidation can help.

ALC helps customers through their debt consolidation program that enables them to take their multiple credit card debts and other bills and roll them into one loan with better terms. The repayments are lower and the terms of the loan are more flexible than what your credit card provides.

With debt consolidation, all your outstanding credit card debts along with other financial obligations you incurred will be combined into one. The loan specialists at Australian Lending Centre will also negotiate with creditors on your behalf. As a result, you can refinance your loan, get a better deal and lower the monthly payments.

Contact the Australian Lending Centre for more information on credit card debt consolidation.

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Cash Advance vs. Personal loans: Which is better?

For many individuals, a “cash” advance is an essential way to finance their emergent needs like hospitalization, wedding and car repair. However, it is not easy to obtain funding especially if you have bad credit. In fact, if you have maxed out your existing credit cards, it is almost impossible to get a new bank card or credit card that offers cash advances. Making a cash advance may also cost you an interest rate which may range from 20-30%. That’s a very costly way of borrowing money! Cash advance vs Personal loans, which is better?

What about personal loans?

Lenders often use the credit reports in determining a loan applicant’s credibility. Poor credit history can get your application rejected. But, what traditional lenders fail to consider is the fact that bad credit is not always a result of financial irresponsibility. Sometimes, even the most financially prudent people have debt problems.

That’s why borrowers with bad credit turn to lenders offering a personal loan to people with poor credit history. In the cash advance vs personal loans competition, personal loans can be a less expensive option. While people with excellent credit may qualify for a loan with a much lower interest rate than what you would pay, it is still cheaper compared to the terms of credit card cash advances.

Cash advance loans for bad credit

If you need money fast but you will not qualify for a credit card advance or any other personal loan from traditional banks, ALC cash advance loans can help.

You can finance your needs with its instant cash loans up to half a million dollars. You can also enjoy secure and quick loan processing with the help of an attentive and responsive team to answer your questions. They don’t require voluminous paperwork like traditional banks and you can see the money in your account as fast as two days!

Special consideration when getting a personal loan

How do you plan to pay off your personal loan? Do you have the funds to pay what you borrow in the next 3 to 4 years to pay the loan?  Whether you are getting a cash advance or personal loan, it is important to determine a budget for your urgent needs. Are you planning a wedding, a vacation or a simple house repair? Whatever your needs are, be sure you have the money ton comfortably pay the loan until the last month of payment.

Why Choose Australian Lending Centre

When searching for a lender to help you deal with multiple debts, especially when there is a court judgment, or bugging debt collecting agencies, you need to pick your lenders wisely. After all, the lending company you choose could make all of the difference to the final outcome of your financial struggles. The experienced and knowledgeable loan specialists at Australian Lending Centre truly care about their clients, and it is obvious in their loan products and services.

They have been helping thousands of Australians with their monetary concerns for more than 2 decades. They offer debt consolidation services, refinancing and other loan products for short-term and long-term needs.

Contact the Australian Lending Centre now!