I watched as two lots of borrowers suffered the loss in one case and near loss in another, of their homes. The reason was Bad Borrowing. I don’t know whether either of them had troubled to consult an experienced loan consultant like GBAC Advisory, but their problems began with high interest loans from shadow bankers. These are the unregulated money-lenders that our federal & state Members of Parliament allow to decimate the lives of the poorer half of the country.
Quoted interest rates were 20 % pa in one case and 21% pa in another. In one case if the payments were not made on time the interest rate became 150% p.a. That is a bit higher than one borrower I dealt with this morning whose loan contract stated the interest rate at “20%”. When I saw it was a 3 month loan I looked back and saw that it was not 20% p.a. but 20% for 3 months – 80% p.a.
It paints a picture of our federal and State Members of Parliament that they endorse and permit this sort of robbery.
The borrowers wanted to get the loan on security of their property, but did not have the income to support a proper bank loan. When the bank declines a loan that is because the bank is fairly certain that the borrower will not be able to meet the repayments, which will mean selling up the home in the end. Now, banks don’t mind doing that, so when even they refuse a loan it means there is a very high risk.
At GBAC Advisory and through FairGO I have known borrowers to cool their heels for a couple of years, get their income stream up and save like mad, cutting out all but the most essential spending. Then they have gone back with a proven record on their bank statement of how much they can save or pay off a loan. The bank has been happy to lend them the money. Patience pays!
If anyone is faced with a major debt problem and looks like losing their home they can always call GBAC Advisory or FairGO.org. We can show them how best to deal with unscrupulous lenders. Going to court seems a waste of time as the lender will mostly have the money to engage far better lawyers and few judges I have seen know much about finances.
One might wonder why the Federal Government did not aim its Integrity legislation at banks and insurance companies as well as at trade unions. Then it may have been a fairer bill and protected more people. Surveys show that people do not trust politicians. Wonder why? There are so many good MPs, but the bad ones must rule the roost or there must be a lot of money flowing into party coffers for this ruthless exploitation of poorer people to be allowed