Business Loans Australia :: News

Business Loans Australia News

Millions lack access to basic financial services

Source: ABC News: 01 Jun 2012

Nearly 3 million Australians do not have access to basic financial products such as a credit card, car insurance or even a bank account, according to a private study.

The annual report by the Centre for Social Impact and National Australia Bank found that those most often excluded have literacy and language difficulties and live in remote areas.

The Measuring Financial Exclusion in Australia report found 17.2 per cent of the population did not have access to appropriate and affordable mainstream financial services such as a bank account in 2011.

It found 192,000 adults had no financial service whatsoever, while 2,803,000 adults had only one service.

And there was a 36 per cent jump in the proportion of adults who did not have a bank account in 2011.

The report's author, Chris Connelly, says these adults are putting themselves at further financial trouble by borrowing from family and friends or dodgy lenders.

"Unfortunately the alternatives that they have are the fringe credit products," Mr Connelly said.

"They tend to exploit consumers. They can be incredibly expensive ... and it also means that those individuals don't have any money set aside or don't have access to credit for an emergency."

The study found the problem was spread across the country.

"We've found that there are some regions that have very high levels of financial exclusion - Wollongong, the inner city areas of Sydney and Melbourne for example, and also some very large regional and remote areas of Queensland, South Australia and Western Australia," Mr Connelly said.

ABC News


Finance Articles

Car Leasing Car Leasing
Leasing is an often misunderstood car financing option so, in response to subscriber feedback, we've included this article to help give you a better understanding of what it is and how it works. - read more
Co-Signing Loans - Risky Business Co-Signing Loans - Risky Business
There may come a time in your life when you are asked to co-sign for a loan or credit card. If this is the case, there are several things to consider before making a final decision. Technically, you are putting yourself at risk of damaging your own credit in the event that the loan goes unpaid. - read more
The Truth Behind Payday Loans The Truth Behind Payday Loans
There’s a lot been said about payday loans. Many claim that the interest rates charged are outrageous. Others say that they are the only source of finance available for those with less than perfect credit score. There is a bit of truth in both claims but there is much more to payday loans than meets the eyes. - read more
Default and Reposession Default and Reposession
Most people would assume that a default under a loan contract means that payments haven't been made but, as you are about to learn, there are other reasons why a lender may have the right to repossession. - read more
Why did my Credit Score drop - and how can I fix it? Why did my Credit Score drop - and how can I fix it?
Your Credit Rating (or Credit Score) plays a very important role in determining your eligibility to get a loan. Here we look at the reasons why your credit score may drop and some handy tips to avoid this problem. - read more
Personal Loans And The Consumer Credit Code Personal Loans And The Consumer Credit Code
Understanding your rights as a consumer is essential in dealing with complex issues like personal loans and other finance. Here we reveal, in simple terms, how the Credit Code works for you. - read more
Loan Finance: How to Shop Around Without Damaging Your Credit Loan Finance: How to Shop Around Without Damaging Your Credit
If you are considering taking out a loan, you wouldn’t go out of your way to make it harder on yourself to get approved or to get a good interest rate, would you? Yet many loan applicants would enjoy a considerably better outcome on their loan application if they followed this important rule. - read more

Finance News

Police issue warning about bank scam
Nov 20 :: Melbourne police are warning people about a scam in which fraudsters pose as bankers and ask for money.They say they cold call customers and tell them they have been overcharged... read more
ANZ nets solid profit despite wealth management
Oct 26 :: ANZ banking group has reported a solid full-year result with net profit attributable to shareholders up 6 per cent to nearly $5.7 billion - but with its wealth management division still... read more
Millions lack access to basic financial services
Jun 01 :: Nearly 3 million Australians do not have access to basic financial products such as a credit card, car insurance or even a bank account, according to a private study. The annual... read more
Reserve Bank leaves interest rates steady
Apr 04 :: The board of the Reserve Bank of Australia has left interest rates unchanged at 4.25 per cent at its monthly meeting today, as widely expected.The decision leaves the official... read more
Big banks not too profitable: RBA
Feb 25 :: The governor of the Reserve Bank says the Australian banking sector is not too profitable.Appearing before the House of Representatives Standing Committee on Economics, RBA governor... read more
Commonwealth Bank changes ads following ASIC concern
Jan 16 :: The Commonwealth Bank of Australia has agreed to change some of its advertised loan comparison rates after concerns were raised by the Australian Securities and Investments Commission... read more
Inflation fall strengthens case for rate cuts
Dec 06 :: A leading unofficial measure of inflation eased last month due to falling food and fuel prices, strengthening the case for interest rate cuts next year.The TD Securities-Melbourne... read more

Need Help Finding a Loan?
Loan Amount:
Postcode:

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Debt Consolidation:
Debt consolidation usually involves negotiating a new loan to pay other existing loans in order to get more favourable interest rates and terms.