Tag: australia

Home Loan Interest Rates In Australia; Financial Advice

Should someone fix their interest rate in loan if they are buying a house in Australia? That is the financial advice, Australia is asking for. The financial crisis of 2008 made many home owners steer away from fixed loans with only five percent home owners committing to fixing their home loans in 2009 and 2010. But afterward, the percentile increased slightly with eight percent customers fixing their loans by 2011. The number rose to double digits with thirteen percent customers fixing their home loans by 2012.

Before the big bang of 2008, fixing home loans was a common culture because customers used to fear that interest rates would climb too high for their reach and wanted certainty in financial matters. That culture changed with the 2008 melt down.

But those days are gone. As Australia’s fixed rates drop to an all time low, many customers are going for fixed rates in order to get the best and what seems like most reliable deal on the table.

Which type of loan is better for you?

Variable interest rate home loan is an interest rate that changes with the official cash rate of Australia. As official cash rate fluctuates with the international stock market, the interest on your loan would always be, indirectly, tethered to Reserve Bank of Australia. If the rate goes up, so does your loan and vice versa.

Fixed interest rate home loan- you pay a fixed amount of interest on your loan for a pre-decided span of time. So, for the first ten years, you will pay a fixed amount of interest no matter what goes on with the Official cash rate.

Analysis- It may sound like fixed rate is your best bet- well it’s the safest bet. Because even though it is safe and certain, it takes away a lot of margin for profit from the equation and get help from perth financial advisors. If the official cash rate goes down, so does the interest on your loan payment. So, if you are in a fixed interest rate and the cash rate goes really down for a considerable period of time- all your friends with variable interest rate will reap the benefits while you will pay the bank extra money.

Data collected by Australia’s Bureau of Statistics show that 17.4% Australians have fixed their loans up until this July, making this the highest number of fixed rate home loans registered in the past six years. This is due to the fact that three year fixed loans among four largest banks have come down from seven percent to four percent.

This is one of the most sensitive and significant financial advice western australia that will be needed in Australia. With these statistics, we will leave the decision to you. May you live long and prosper!

Various Ways Used by Australian Debt Recovery Firms to Collect Funds from Defaulters

Currently, borrowing by Australians has reached a record high. Fortunately, the personal assets of individuals have also gone up with substantial increase in prices of homes, share market and superannuation. Nevertheless, with the rise in household debts, bad credit debt consolidation loans are becoming increasingly popular. Therefore, if you are in such situation, seek advice and explore the options available.

Options for Consolidation

In Australia, there are very good options and proven methods for helping individuals move out of their financial mess. Bad credit debt consolidation loans can be drawn against home equity. This means that your home value should be more than what you owe the bank. This can be very helpful by reducing the interest payments and bringing your debts under control. Since, housing loans have lesser interest rates as compared to credit card and personal loans; it will help you greatly. Another useful option is to transfer all debts into a no interest or nominal interest on credit card. In this way, you can make substantial savings during the time period of low interest. However, by opting for this strategy, you have to be disciplined and ensure that you pay off all or a significant part of the credit card debt before the period of the transfer ends. The final option is replacing your current credit card and personal loans with a single unsecured personal loan.

Debt Recovery

After the recession, the economy in Australia has been picking up and is becoming more volatile. Consequently, businesses have to come up with innovative strategies to stay in the competition. Large amounts of funds are used to invest in rebranding and marketing. This sometimes leads them into debts and lenders find it hard to recover the money from the businesses. Fortunately, Australian debt recovery can come to your rescue and help you get back your money. Most collection firms charge clients only after recovering at least 50% of the amount. The fact that you are dealing with professionals helps you as they follow the laws of the country. Moreover, their methods are effective as they are trained in dealing with debtors. Hence, entrust your debt collection woes to reputed agencies.

Solution for Recovery of Debts

For creditors, debt collection can pose a challenge. With Australian debt recovery, you can be assured of a hassle-free collection from experts. Businesses suffer when there is not enough cash flow; so, they get the help of Australian debt repossession services. They carry out the collection in the most effective way; if need be, legal action is taken. However, this is only the last resort; before that, negotiations are conducted with debtors and try to bring about a mutual settlement. Letters are sent reminding them of their liabilities; often, debtors do not respond at the first intimation. Some of them do not respond at all because they don’t have the funds to pay. Others are negligent and pay only when it is suitable for them. There are still others who move from their existing premises making it very difficult for the collection firm to trace them.

Author’s Bio:

Author is an experienced content writer with many years of experience in the filed of finance. He has been appreciated for his many articles published online. Now he is providing information on Australian debt recovery and bad credit consolidation loans.

ATMS and Their Influence on Banking Sectors in Australia

Since deregulation of banking in the mid 1980’s, financial and banking industries in Australia have become increasingly competitive and innovative. Australia is ranked as one of the countries with the least controlled systems of banking globally with a foreseeable increase in competition due to implementation and large scale adoption of the recommendations of the Wallis Report done by the Financial Systems Inquiry. An increase in the number of banks and financial institutions entering the market today has led to adoption of various banking products and improvement in banking technologies such as ATMs.

ATMs are computerized telecommunications gadgets that offer clients of financial and banking institutions access to various financial transactions in public without the need for bank tellers and clerks. The bank clients are usually identified with plastic smart cards that are fitted with chips and magnetic strips. The cards contain security information such as the expiration dates of the cards and unique numbers. The security of the card is provided by the client who enters a personal identification number using Automated Teller Machines. The client can then access the funds held by the bank and make cash withdrawals or advances.

ATMs have had great influence on the banking sector in Australia. Firstly, they have helped create a highly sophisticated and secure financial trading environment offering Australians the capacity to carry out financial trading globally, electronically and in real time. The devices have also offered an improved fee transparency and competition within the banking and financial system.

Thirdly, with the growth of the electronic gadgets, Australian commerce has been able to reach new heights allowing consumers a chance to enjoy the wide range of financial choices. The devices have also made it possible for payments to be settled quickly and conveniently allowing customers, organizations and businesses the ability to transfer cash to and from personal and business accounts.

Mel writes about ATMs, ATM fees and other finance topics.