Category : Loaning

The Australian Share Market Slumped to a Two-Year Low.

For around 12 months we have believed that Australian and Global equity markets have been extremely overpriced and riding on the strength of euphoria as we couldn’t find many opportunities for growth.

We had always been saying that the Australian and US equity markets have been overvalued and thus very early on had little exposure to both asset classes. Most Australian investors who aren’t our clients have a love affair with domestic and US shares thus seeing very large declines in their portfolios over the past 3 months {-12% to -22%}

Payday Loans – The crack-cocaine of lending.

Attractive advertising, paired with an individual desperation, is what helps to fuel the seduction of Payday (short-term) loans, and they are quickly becoming a menace to our society; more often than not leading people into a worse financial situation than where they began. 

Payday loans in Australia are part of the small loans market.  Statistics show that many people who apply for such a loan are already in financial hardship. They may have even already tried to apply for a small personal loan through a banking institution and been denied a loan.  The national consumer credit protection act mandates that all lenders ensure that the person applying for a loan can afford to repay the loan without substantial financial hardship.  Payday companies are not required to make such assurances for their clients and have made access to small loans of under $2000 increasingly easier with their online presence.