Payday Loans

Watching The Project tonight they stated that 1 in 5 Aussies is living pay check to pay check....Which explains how they end up needing pay day loans for some expenses.

I think this is sad... But on the plus side that means 1 in 5 Aussies are pretty likely to be life long tenants (Unless they are lucky to have help with the deposit/loan)! It is a double edge sword though, people without savings and assets have nothing to lose (excluding their bond).

Just an interesting statistic.

According to google: The latest NAB Measuring Financial Exclusion in Australia report, conducted by Newspoll, found that almost one in five adults in Australia (18.7 per cent) rarely or never have any money left at the end of a pay cycle. - See more at: http://www.probonoaustralia.com.au/...es-living-pay-pay-report#sthash.Z7eMbUGT.dpuf

 

This is not surprising to me at all. It's really to be expected.

 

It never ceases to surprise me... So many peers from uni intentionally live pay check to paycheck because 'I will save money when I have a real job'...

 

I used to work with professionals earning great salaries, and somehow they always ran out of money a few days before pay day. Not 1 or 2 but so many. The biggest joke of all was when I lent some money to a lady so she could pay her son's school fees. She was anti money, anti banks, anti rich. What a joke. They would always talk about scummy landlords, cost of petrol being so high and the dream of buying a home one day...

 

Ive worked with guys who earn over $1,000/day (plus have no expenses while they are working) and somehow still manage to miss mortgage repayments on their crummy 300,000mortgage.

Im suprised it is as low as only 1in5. I would think it is closer to 50%. Certainly less than 50% would be able to survive much beyond about 3months if they had no job.

Blacky

 

Yes @Blacky that's what surprised me too. I'm pretty sure it's easily alot more than 20%.

 

I think it's good to live pay to pay, it means you're sticking to a budget.

 

with no savings? Just live paycheck to paycheck? Common @Azazel how is that good. It's just surviving barely.

 

I work with people that earn 100k. They 'cant' afford to save and say to buy a house is a dead dream. However happily spend $20 a day on lunch, plus coffee and regularly buy 'stuff'.
You ask if they are saving for a deposit and they have zip. Stuck living in the now.

 

"Budgeting and money management" subject in school curriculum can help reducing payday loan and over all debt across the board!

However, we are overloaded by monthly repayment marketing jargon!

 

With savings/bills all being distributed on payday. Run out, too bad. Get used to it pretty quick.

 

my PC incorrect comment

I think its a typical aussie mentality (may be even white person mentality)

maybe its because we have a great welfare system,

maybe because we have the great aussie dream of owning your own home mentality

but I find typical aussies absolutely hopeless with money

many foreigners that come here to live/holiday/travl etc are often shocked at how aussies seem too dumb to plan for anything in the future, ie living day to day.

although im not the poster boy for saving, even from a young age, I always had a buffer for if I couldnt pay rent due to illness, issues or whatever

 

Its because we live in a socialist utopia.

This is to be expected of the lower classes in a socialist utopia.

Lack of safety net is a wonderful motivator

 

Most of these people are probably renters considering that mortgage default rates throughout Australia are 0.1%. If somebody asked me if I lived week to week I’d say yes. However, that’s because I’m on a budget but I do have savings as well as offset account to fall back on if I need to.

 

Even the average person in the USA is like us.

I remember watching an episode of Dr.Phil while living over there - it was about money management etc - which caught my attention.

So, they had 3 couples on the show - approx 30 -35 years old, who were all in dire financial straits, and they were hoping for some guidance and a lifeline from the good Doc.

Well; he gave them all an absolute pasting of course when he found out just how upside down their finances were...huge consumer debts on CC, car loans on brand new pick-up trucks, etc.

From memory; at that time the average Yank was spending approx 105% of their income, and we were not far behind at about 102%.

You would be surpised.

Just because folks are buying a home doesn't mean they aren't always broke - I live in a "blue collar" suburb primarily (of the residents who live here) and sooo many of them come into my workshop and I can see from the set of factors how they are travelling financially -

Tyres waaay beyond bald and wanting the cheapest new tyre we've got (or second hand), cars waaay overdue for servicing - and older cars with lots of miles and worth zero at that - or; do the bare minimum service work and defer anything else until later, and so on.

It's a small example of course, but then I drive down the road to Rosebud which has an even lower-end demographic than our suburb and you just know what the deal is there too.

Extrapolate this out to however many "blue collar" and below suburbs around Aus, and this gives you the real picture.

Of course; folks who are working and living and socialising in the "higher end" suburbs probably never see any of this, and won't believe any of what I've said...they'll pull up a chart and say; "What the hell are on about? Look at these numbers!!"

 

dr phil and judge judy should be named the peoples court for bogans only!!!

 

The three couples on Dr.Phil weren't bogans - they were yer clean cut, average Mr. and Mrs. Normal with a few brains - and that was one of the main points of the episode; how the average folks are doing things out there.

 

I love judge Judy. Razor smart and full of common sense with no tolerance for nonsense. She gets my vote.

 

yes I do to, I find her refreshing, intelligent, and straight to the point

but I find her quite sexist a lot of times eg your a man, you should be wining and dining the woman
and sometimes I find her arrogant and dismisses a lot of stories/statements becasue it might be too complicated or too new, eg you shouldnt be advertising for tenants on craigslist

 

Those payday loans can wreak havoc on your credit file. Even just one file hit from a payday loan company will cause credit assessors to twitch nervously.

Cheers

Jamie