Join Australia's most dynamic and respected property investment community

My budget Direct - do you know of anyone who has used?

Discussion in 'Small Business' started by Greyghost, 21st Jul, 2016.

  1. Greyghost

    Greyghost Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,262
    Location:
    Melbourne
    Morning all,
    Firstly I'll clarify I'm not looking to use their services... Lol.

    I have read some reviews on the business (in general).

    I'm looking to get some more insight into their business.

    Has anyone here used them before? Or know of someone who has used them?

    Please feel free to PM me if you do not wish to post here.

    Regards
    GG
     
  2. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    900
    Location:
    Melbourne
    I've tried to refinance a client while they were using my budget. Was very dificult. While everything was paid up, good income etc, the assessor just wouldn't do it. Shame really, the clients were doing the right thing. The loan would have been kept meticulously being administered by my budget.
     
    Greyghost likes this.
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,785
    Location:
    Perth WA
    I think it's great for some people - I've met clients who simply do not have the discipline/desire to manage their money - this outsources it.

    Of course, it's a bandaid but for some people that's better than nothing.
     
  4. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    1,397
    Location:
    Melbourne
    My understanding is that if you are or need to use it. Financial literacy is poor

    And most likely credit rating is poor.

    I thought it was another form of bankruptxy where you go on a payment plan in one lump sum while they negotiate to minismiethe debt or repayments.

    Somethijg about a section 10
     
  5. Otie

    Otie Well-Known Member

    Joined:
    26th Mar, 2016
    Posts:
    293
    Location:
    Vic
    I looked into it a while ago for a relative who has a low level education and has literally no idea with money. She ended up handing everything over to her sister to take care of instead as it was really expensive, and not so much aimed at people who need help with budgeting, more for making arrangements to pay etc. It works out too expensive just to use to manage your money. I think they charge like a $1500 upfront fee or something
    I think there are community based or government services that can set up a similar thing, though I may be wrong. I have read about them missing peoples payments and being disorganised. Also I heard their fees were really high.
     
  6. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    1,397
    Location:
    Melbourne
    I also dont really get this talk about financial literacy.
    To me its all about planning or controlling your emotions and common sense

    I had no form of finacial literacy.
    My parents never taught me anything.
    They werent rich. They werent poor. They used credit cards, not sure whether they paid them off or not

    You have $10, spend $9 you save, spend $10, you have zero, spend $11, using a credit card you are negative.

    If you save zero each month and get an unexpected (lets call it unprepared) such as indurance, car reg and you have not enough. Then you borrow it, and try and pay it off asap

    Financial literacy is a poor excuse of lack of control, lack of planning and poor prioritising
     
    KayTea likes this.
  7. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    285
    Location:
    Brisbane
    I get your point, but with some people, they don't understand 'the fine print' that comes with the responsibility of using a credit card, or they have a 'head in the sand' mentality when it comes to learning about how to manage money.

    Also, being 'financially savvy' is a little harder than it was years ago. I remember my parents talking about the interest rates of the late 1980's - definitely tough times - but there were no real alternatives. There was no loan shopping and refinancing options like we have today.

    Back then, they couldn't make extra repayments, couldn't choose between fixed and variable, no IO vs P&I, didn't have an offset option - they couldn't even choose to make repayments weekly instead of monthly. It was just 'the bank made everyone do the same thing the same way' - so you didn't really have to be too literate. Just do what the bank told you that you had to do.

    Now, there are so many options, acronyms, and changes, it's hard to stop the analysis paralysis at times, and feeling like you truly have a grasp on things can be a hard place to get to.
     
    TMNT likes this.