Are you finding it difficult to get personal loan because you have poor personal loan history? Rest assured that you are not the only person in this position. Trying to get finance for property, investment or a car when you are a poor personal loan risk can be very frustrating and stressful. Applying for a personal loan can be the answer to your financial dilemma when you seek personal loan but have a bad personal loan history. Many of us begin our working lives not really understanding the importance of having a very good personal loan history. This is something that we learn as we get older and wiser and begin to contemplate borrowing money for our first car, which we all normally do with a parent acting as a guarantor on the car loan application. Maintaining a good personal loan history from the beginning, that means not making late payments, not defaulting on our first loan and other bills such as our mobile phones which are all recorded against our personal loan history, will make applying for a holiday loan or a home loan that much more easier.

If you have had a history of bad personal loan then don’t despair. You can begin turning your personal loan history around by beginning regular savings. Remember that while one financial institution may knock back your loan application, another may grant it. With a regular income, stable job, regular savings and collateral, you can turn your bad personal loan history around. It also pays to be honest with the lender. If you have defaulted on loans in the past then they will be noted on your personal loan history and the lender will know about it.

A bad personal loan history will certainly be a hindrance to loan seekers. You can’t simply expect to walk into a financial institution and be granted a loan without working at improving your balance sheet. The financial institution will need to be encouraged by regular savings and a regular income that shows your responsibility towards saving and indeed, showing the ability to repay a loan.

The majority of financial institutions will require you to show the following before granting you a loan if you have a bad personal loan history.

• Constant Income and the ability to pay
• Stable Employment
• Regular Savings without being overdrawn
• Payment of current and previous loans on time

Unfortunately, as a bad personal loan borrower, you will be subjected to larger than normal interest rates. As we have all seen with the sub-prime mortgage fiasco in the United States, people need to borrow money, in this case for homes; they receive home loans at larger rates but then don’t have the capabilities to repay them. While the American banking system was rather liberal in granting these loans to anyone and everyone, the Australian banking industry is fair to say, a little more stringent when it comes to lending money.

As a bad personal loan borrower, you will be charged more than the average Joe when you seek a personal loan. This is because the financial institution is taking a risk because of your previous poor personal loan history. The financial institutions don’t want you to default on your loan, they just want the interest and loan amount repaid.

The bank will still need to be satisfied that you can make your repayments without suffering financial hardship before granting you a loan even though they are going to charge you more to do so. There are two types of bad personal loans available to consumers to take advantage of when seeking finance from a bank.

A secured bad personal loan will require you to provide collateral as a form of security against the personal loan. The bank simply can’t and will not take a risk in lending money to some people who have an extremely bad personal loan history.

Make sure that you understand that the bank can sell your collateral to pay off your outstanding debt. An unsecured bad personal loan does not have any risk for the borrower attached to it. However, for a bad personal loan finance seeker, an unsecured personal loan is generally for a limited amount. A secured personal loan  is a lot easier for you to have approved than an unsecured personal loan .

• Pay your bills on time. One of the things that many lenders do is check the history of a person’s mobile phone bill. If you can’t make regular payments for your mobile phone then how will you be able to make regular payments for your personal loan?
• Begin a regular savings pattern. You need to show that you can pay off a personal loan should it be granted to you. The bank will want to know why you haven’t saved any money and will ask why you can afford to pay off a loan when your bank balance suggests that you need every dollar earned to live on.
• Make extra payments. Improving your personal loan score will only save you money in the long run. Your next loan will be at a cheaper rate and your extra payments will ensure that your current loan is repaid at a faster rate.

Showing a solid work and savings history is paramount to helping you get a personal loan. Call Aussie on 1300 633334 and we will assist you.

Help keep your car ship shape with easy tips to help you get the most out of your vehicle – it pays to put the effort in.

Many Australians are trying to get the full value out of their vehicle as evidenced by the recent findings that the average age of a vehicle on the road has reached over 10 years old, according to a recent study. In order to make sure that vehicles remain durable, it is important that motorists look for ways to help keep their vehicles running smoothly and efficiently for longer. The engine in a vehicle is much like the heart in our bodies – In order for the heart to be fit and strong, we need to take care of it – same with your engine. We need to help owners know that they should take the steps to help extend the life of their vehicles. Proper and regular maintenance of a vehicle can help save money on repairs down the track, especially for vehicles that are already over 10 years old. There are many ways to help increase your vehicle’s
longevity and save money in doing this. Here are a few tips to help you get the most out of one of your largest and most important assets.

Make It part of your day to day.

Just as regular check-ups with your doctor are important for your own health, heeding regularly scheduled maintenance intervals as determined by the vehicle manufacturer is also an essential step to help keep your vehicle healthy. Taking your vehicle in and having it regularly maintained helps to make sure your vehicle has what it needs to keep it running. Of the overall maintenance regime, one of the most frequently missed maintenance tasks is the oil change. By changing your oil as recommended by the vehicle manufacturer, you can help maintain the performance of your engine. Regular maintenance and recommended
intervals are typically outlined in a vehicle’s owner’s manual.

Take It Easy

To make sure your vehicle can stand the course of time, it is important to avoid unnecessary strain on the engine. Your vehicle needs to be warmed up when starting – get the oil circulating from the bottom the motor especially if it has been sitting for an extended period of time. Allowing your engine to warm up by easing into acceleration will help the oil flow quicker and decrease the amount of wear and friction-related damage that may occur. Maybe even more important than taking it easy on startup is making sure to not overexert your vehicle. Constant, high RPMs, short braking, high-speed driving and other
severe types of driving can lead to accelerated engine and transmission wear and potentially more substantial issues.

Keep It Clean

When trying to get the most life out of your vehicle, it is important to not overlook the body of the vehicle – paint, glass and rubber. Consumers’ vehicles likely take a beating throughout the year with the months of long summers and the sun beating down on it. High temperatures, bird droppings, tree sap and UV rays in the warmer months will cause the most damage to the interior and exterior of a vehicle as will rain and if you live at the coast – salt water spray. Keeping vehicles clean can help protect them from the chemicals and dirt that may attack the car’s finish and undercarriage.

Make Sure It’s Covered

Having your vehicle covered for any issues that may arise is important, and extended warranty programs are becoming more and more prevalent. Following these simple tips can help promote a long life for your vehicle. For more information about the best way to protect your car, talk to you local licenced motor dealer – they are there to help. You can call our office on 1300 633334 and we will point you in the right direction.

Safe driving!

Finance Options Available.

Need Finance is your source for short-term and long-term finance solutions – we offer flexible lease, finance and rental options to suit your needs. Need Finance have a proud history of being one of Australia’s leading finance option provider’s.

Need Finance offer finance solutions for commercial goods such as forklifts, bobcats, tractors, computers, servers, catering equipment, warehouse equipment, office furniture, office
equipment, and phone systems and so on. 

Operating Lease/Rental

An Operating Lease/Rental is a type of lease in which the financier retains ownership of the leased equipment. Under an operating lease there is no predetermined ’residual’
value to pay as ownership does not pass automatically to the customer at the end of the term.

Operating Leases/Rentals are not listed on the company’s balance sheet. Being ‘off balance sheet’ is considered a major advantage over finance leases. By not having to list the
Operating Lease/Rental on the balance sheet the company’s debt to equity ratios are not adversely affected. This means that the Bank will be more inclined to provide funds when needed for other worthwhile projects.

For high technology equipment, which can become obsolete within a couple of years, Need Finance can tailor a term that will enable you to hand back the old equipment
and take the new asset within a set time frame – a clean and easy way to keep your business in front of the competition.

Option 1 – Rent only.

For many people, a straight-forward rental agreement is often the most cost-effective way to acquire equipment. The contract term can be structured from 24 – 60 months. At
the end of the term, you have three options –

• Hand back the equipment and upgrade or
• Continue to rent the equipment or
• Offer to purchase the equipment at fair market
  value

Benefits

• Security of fixed payments and interest rates
• Preserves working capital – funds can be invested in other parts of the business
• Tax efficient – lease payments are generally 100% tax deductible

Option 2 – Rent to own.

Essentially, you
pay a rental fee for an agreed term 24 – 60 months. Once the rental agreement ends, you have a final $1.10 payment (Inc GST) to make and the contract is finalised. There is no further obligation – the goods are yours.

Benefits

• Security of fixed payments and interest rates
• Preserves working capital – funds can be invested in other parts of the business
• Tax efficient – lease payments are generally 100% tax deductible

Fast Finance Made Easy!

     Lease

A lease represents a way for a company or an individual to obtain new or near new equipment for business purposes without extending their budget. Having a deferred payment set
or a ‘Residual Value’ at the end of the repayment term enables this to happen. The Residual Value is geared to represent the future value of the goods.

For tax and accounting purposes, the financier is treated as the owner – i.e. ‘off-balance sheet financing’. Interest rates are fixed for the term, which is negotiable within a range of 12 to 60 months. Residuals are set by the Australian Taxation Office and vary depending on the projected life span of the goods.

Benefits

• Preserves working capital
• Fixed repayments and
  interest rates for the term of the lease
• Tax efficient – lease
  payments are generally 100% tax deductible

 Business Vehicle Loan/Asset Purchase

A Business Vehicle Loan is a flexible and tax effective means of financing a forklift. Under a Business Vehicle Loan your business owns the forklift and the financier takes a mortgage/bill of sale over it.

You can choose to structure your loan over a 12 – 60 month term and incorporate a final balloon payment to match your monthly payments with your cash flow requirements. Interest is calculated daily and extra repayments can reduce the loan period and interest payable.

Benefits

• No GST on repayments
• The equipment is an asset of your business
• Payments can be structured to suit your business requirements.
• Interest can be offset against taxable income
• Depreciation allowances may be claimed.

Business Equipment Loan/Term Purchase

A Term Purchase represents the ideal choice if a company seeks to own their equipment at the end of the repayment term. That is, the ownership of the equipment passes to
the customer upon payment of the final instalment.

The arrangement can be structured either to be fully amortised over the term, or payments can be set by structuring a “balloon” payment as a final instalment. It is structured to preserve business capital whilst paying for the equipment from generated income.

For tax and accounting purposes, the operator is treated as the owner – i.e. ‘on-balance sheet financing’. Interest rates are fixed for the term, which is negotiable within a range of 12 to 60 months. This option best suits those who aim to eventually own their equipment.

Benefits

• No GST on repayments
• Unit is shown as an asset on the balance sheet.
• Payments can be structured to suit your business requirements
• Interest can be offset against taxable income.
• Depreciation allowances may be claimed

WE are here to help!

Simply speak to your Need Finance representative who can provide you with further information and assist you in establishing the finance package that suits you best.

Need Finance recommend that customers consult with their Accountant or Taxation Professional to determine which product best suits the needs of your business and speak with Aussie.

Need Finance offer finance solutions for commercial goods such as forklifts, bobcats, tractors, computers, servers, catering equipment, warehouse equipment, office furniture, office
equipment, and phone systems and so on. 

Honeymoon – North

Get back to nature with a honeymoon in the Northern Territory. Explore the 20,000 square kilometers of lush wetlands and woodland plains that make up Kakadu National Park. There are some wonderful outback activities to do such as cruising the Adelaide River and enjoying the scenery and spotting the wild life – Crocodiles, birds etc.

Enjoy world-class fishing and swimming in the Territory’s many billabongs, tidal rivers and mangrove-lined estuaries – you’ll really experience nature at its best in this part of Australia. You won’t have to spend your nights cooped up in a concrete high-rise hotel either.

Best to go in the dry season – March – October as the wet season can restrict you in where you can go. Get a loan for your wedding and go in style.

South

If you’re after peace, tranquility and a romantic hideaway, then a holiday in South Australia is the ideal place for honeymoons. Beautiful wineries and delectable food will
complete your induglence, no matter what time of year your honeymoon is.

It is a place to slow down and enjoy yourself and your company. Weddings are for the guests, honeymoons are for you.

East

White sandy beaches, turquoise waters and the awe-inspiring Great Barrier Reef make this one of the most magical and popular destinations for honeymoons in the world. Hamilton Island is a good place to start is often described as the jewel of the Barrier Reef and with its restaurants, swimming pools and more, it’s little wonder why.
Refresh your body, mind and soul with a pampering treatment in the resort’s rejuvenation spa to relieve the post-wedding stress. Sail a catamaran, stroll in the rainforest or sip a glass of champagne on the beach at sunset. The resort offers sensational packages with lots of exciting extras.

West

They say that if you head to Western Australia’s Coral Coast for your honeymoon, you’ll find the bluest ocean you’ll see anywhere in the world. Located South of Perth, the Coral Coast
is an eco-wonderland. Not only will you swim in the bluest of oceans, you’ll share the water with whale sharks and dolphins making your holiday an absolutely unforgettable experience. As the area is also the hub of Western Australia’s Cray fishing industry you can spend your days feasting on the freshest seafood too. No wonder they also say that the West is the Best.

Visit Aussie loans or ring us direct to discuss your needs and requirements – 1300 633 334. We will fund your honeymoon so you can go to the destination of your choice. Call us for any other finance needs that you may have and you will not look back.

Checking mirrors and seat belts every time you get in you car might seem overly cautious, but driving experts say that what you do before you turn on the ignition may mean the difference between life and death.

So many accidents can be traced back to bad decisions before you even get behind the driver’s seat – said a professional driving instructor for Porsche Cars.

You should check your wiper blades monthly as well. Worn blades impact visibility and create glare on the windshield, even when they are not in use.

What you bring with you into your car could be the most critical decision of your day. Mobile phones are one of the most dangerous items to use in your car. Anytime you’re talking, texting or using GPS applications, you’re not paying attention to the road. Using mobile phones while driving, especially to text message, is as dangerous as driving under the influence of alcohol or drugs. Do yourself a favour and turn your phone off.

After switching off your phone, you should check and adjust your seat belt. The lap belt should rest low across your waist and the shoulder strap should come over your shoulder and across your chest. Never put the shoulder strap under your armpit. Before turning on the ignition, adjust your rear-view and side-view mirrors. According to driving experts, too many drivers set their mirrors to reflect the outside of their own car instead of the road.

“You already know where your car is; you should be concerned about where the other cars are so that you can avoid them.”

When positioning your hands on the steering wheel, hold the wheel at 9 o’clock and 3 o’clock. In this position, you can turn the wheel the furthest without your hands crossing over. This hold also allows for a better “feel” and faster response time.

Checking mirrors and seat belts every time you get in you car might seem overly cautious, but driving experts say that what you do before you turn on the ignition may mean the difference between life and death.

So many accidents can be traced back to bad decisions before you even get behind the driver’s seat – said a professional driving instructor for Porsche Cars.

You should check your wiper blades monthly as well. Worn blades impact visibility and create glare on the windshield, even when they are not in use.

What you bring with you into your car could be the most critical decision of your day. Mobile phones are one of the most dangerous items to use in your car. Anytime you’re talking, texting or using GPS applications, you’re not paying attention to the road. Using mobile phones while driving, especially to text message, is as dangerous as driving under the influence of alcohol or drugs. Do yourself a favour and turn your phone off.

After switching off your phone, you should check and adjust your seat belt. The lap belt should rest low across your waist and the shoulder strap should come over your shoulder and across your chest. Never put the shoulder strap under your armpit. Before turning on the ignition, adjust your rear-view and side-view mirrors. According to driving experts, too many drivers set their mirrors to reflect the outside of their own car instead of the road.

“You already know where your car is; you should be concerned about where the other cars are so that you can avoid them.”

When positioning your hands on the steering wheel, hold the wheel at 9 o’clock and 3 o’clock. In this position, you can turn the wheel the furthest without your hands crossing over. This hold also allows for a better “feel” and faster response time.

Before you take your car to mechanic for an oil change, you should know what to expect. If you want to save money and avoid being over charged for your service, knowledge and understanding is important. Your car may take a standard level of oil, but many cars and trucks these days call for an upgraded oil such as full synthetic oil. Higher mileage vehicles might benefit from special high mileage oil blends. These will cost you a little extra, but there’s nothing you can do about that. Be sure to ask to have the oil filter changed as well. To ensure it does get replaced at service time, mark the filter with a felt pen – put a small “O” or other mark on your oil filter before you bring it in for an oil change. When they’re done, if you can still see your little “O” you know they didn’t give you a new filter.

It’s impossible to get an oil change without being hit with the sales pitch for added services. These aren’t ripoff attempts, they are technically offering real services that will benefit your engine. The problem is your car or truck may not need these services. Always check your owner’s manual to see if there are any major services your vehicle is due for. If they tell you that you need a transmission service, but you know it’s not time, you’ll know to turn it down.

Being prepared for your oil change will guarantee you won’t be taken advantage of at the shop. With money a little tighter, many families who might have jumped onto a plane for a holiday on the Gold Coast are opting for a road trip instead. Driving trips can be fun, what a great chance to get to know your family more intimately than you might have wanted. Whether you’re looking forward to it, all day in the car with them can be a long one. It is important, quality time and you want everyone to arrive safely. A tip for everyone – Windshield maintenance is an often overlooked chore. With road works all around Australia it is important to have a clean windscreen. Wet and muddy roads can blind you instantly without good wipers and washers. But in warm weather we seem to forget that we need things to be up to standard. You’ll be traveling to an area you don’t frequent. If you’re caught off guard by a kangaroo, that’s no time to realize your screen is cloudy. Take a minute to do these quick jobs and you’ll have some added peace of mind on your next road trip.

1. Make sure you replace your windshield wipers. A 5-minute job that can save your life.
2. Top off your washer fluid. Less than 2 minutes for this one.
3. Apply a windshield treatment. Some people swear by it, read this and decide for yourself!

Unfortunately the facts are that any machine with moving parts will need service and repair at some stage – normally every 10000k’s. Occasionally, your car may break down and leave you in need of car repairs. Depending on the type and amount of damage, this may be a minor cost and inconvenience or it may amount to major repair work and an extended period without your car. Your car mechanics will be able to diagnose your problem and they should be able to give you a quote at the time for the repair. If you are not happy with the quote, don’t be afraid to get a second opinion. Servicing your car correctly will allow you to avoid unexpected breakdowns and costly car repairs.

Most common car repairs are often caused from simple issues, such as a lack of motor oil or overheating. Keep an eye on your temperature gauge and if your car is overheating, pull over immediately to avoid further damage. Overheating the engine can warp seals and gaskets and even the engine components themselves such as rings and pistons. You should consider learning where your vehicle’s dipstick is and checking the oil regularly. If you notice anything strange, such as oil deposits under the vehicle, white spots or flecks of steel in the oil or an unusual amount of oil use, contact your mechanic as soon as possible. If you are involved in a collision or related car accident, you will most likely have to visit a smash repair or panel beater workshop. In some cases, the car may be written off, which means the car is too damaged to warrant car repair or the costs to repair it are too excessive. However, in many cases, a vehicle can be repaired.

Body panels will need fixing or replacing and parts exposed to front and rear end damage are common casualties. In a frontal collision, it is often the radiator that suffers and requires replacing and panels or bumpers at the rear may easily be banged around and need replacement. The replacement parts are reasonably priced and easy to fix.

Why team up with Aussie Loans -

• Guarantee that your clients will always remain yours to follow up.
• Generous commission structure for both Finance Commission and Brokerage.
• Support your business with difficult deals and assist you to succeed.
• Strong supportive network of independent brokers and our cornerstone.
• Regular professional developments and training.
• Access to inexpensive professional indemnity insurance.
• Access to our corporate arrangements, such as building your business website, business cards and full support.
• Provide brokers with a total solution and benefits of our wide band of financiers.
• No minimum sales targets to meet.

At Aussie Loans, it isn’t all about numbers, our people are our priority and there is nothing we do better than nurture success. Our growth is largely attributed to the drive and ambition of our existing brokerage team, a team of people who are just as committed to building their own businesses as we are.

If you are tired of working on your own as an independent finance broker – talk to us – 1300 633 334. Do you feel that you don’t have someone to talk with about your business struggles and how to grow your business?

Beside all the above services provided to experience brokers, we will also include the following services to new brokers -

• Organise professional study and training necessary to obtain appropriate memberships.
• Assist in the start up of this business, such as professional insurances and FOS membership, etc.
• Mentoring program.
• Generous commission structure while being trained.

Whether you are sole trader or a broker looking to grow a team of loan writers, we offer varying levels of training to broaden your required skill set. Aussie Loans offers a unique team environment and we understand that while financial success is important, so is job satisfaction. Aussie Loans is bound to the highest ethical standards, and our own code of conduct.

Importantly there are some options to provide your customers with Finance products and Insurance products as well – all great products that can assist your customers better plan for the future. Dealing with Insurers like Swann Insurance , Avea and Suncorp Insurance, provides our customers with the best of both worlds – strong Insurers who don’t turn their back on our customers in time of need but also fair premiums where your customers will get a fair price for the cover that they are looking at buying. That’s what we all are after – fair value for money. If the insurance is too cheap, the cover will be very basic. We sell products that have great cover at a very competative price – you will be surprised.

Call us today and take the first step forward to financial stability. You can email matt@aussieloans.com.au as well to start the ball rolling. We would be only too pleased to get together and build a great business relationship together.

Assistant Treasurer Bill Shorten has told Sky News Treasurer Wayne Swan’s banking reforms will not guarantee a drop in interest rates. When announcing the reforms last week, Swan commented that the measures would build competition in the banking sector, “which will ensure that interest rates are lower over time.” However, when interviewed on Sky News’ Australian Agenda, Shorten said while the reform package would put downward pressure on rates, “No one can guarantee that interest rates will go down, because partly they’re set by the Reserve Bank of Australia and there are always plenty of factors coming into play.”

Shorten commented that the reforms would build competition, which would exert pressure on prices. “What we are trying to do is put competition into the mortgage market. We are trying to improve the role of the non-four big banks, and we’re also trying to improve liquidity in our market,” he told Sky News. In his weekly economic note, Swan claimed to have received broad community support for the reform measures, and said he was heartened to see the plan have “such strong endorsement from smaller lenders, consumer groups and small business.”

Treasurer Wayne Swan has announced his banking reform package, which will see a shakeup of the way home loans are constructed and the funding market for smaller lenders. Under the program, home loan exit fees will be abolished on all new home loans from July 1, 2011. Account portability will also be examined, with former RBA governor Bernie Fraser conducting a feasibility study on establishing transferrable account numbers. The reforms also introduce Swan’s oft-discussed Fifth Pillar. More than 20 mutuals will be approved by APRA to refer to themselves as banks if they so choose, and an awareness campaign will be enacted to alert consumers that mutual deposits carry the same government protection as do bank deposits. Funding will also see a government boost, with $4bn invested in high-quality, AAA-rated RMBS. The development of bullet RMBS will also be accelerated, to allow smaller lenders to diversify their sources of funding. Swan has commented that this funding will ease Australia’s reliance on overseas markets. Also on the table is a review into making LMI transferrable.

“The problem is that we are too reliant structurally on overseas funding,” Swan said in his announcement of the reforms. “Bullet bonds, corporate bond market, covered bonds, are ways of lessening our reliance on overseas investing and marshalling the savings of Australians and getting it reinvested in our system, and in doing that providing some competition for the big banks.” Shadow Treasurer Joe Hockey has criticised the reforms, calling them piecemeal and warning that they could actually harm smaller lenders.

It remains to be seen if this is just a start to a process that will be ongoing. They will never get a system that is so complicated, sorted out with some minor reforms. We know are a part of a Global Banking sysytem and with by association we will cruise or we will fall. One thing is for sure, the squeaky wheel gets the oil – so keep hounding your local members of the state and commonweath governments  and voice your concerns.

Australian’s are saving more and paying down their debt thanks to a strong economy but levels of indebtedness remain historically high, a central bank report says. In recent years Australian households and businesses had benefited from reasonably solid growth in employment and wage incomes, the Reserve Bank of Australia (RBA) said in its half yearly Financial Stability Review. “They are continuing to consolidate their finances, saving at a much higher rate in recent years and slowing the pace of debt accumulation.”

The central bank said that in 2010 households were saving 10 per cent of their net disposable income, which compared to levels of below four per cent first half of the 2001-2010 decade. The RBA said that a series of interest rate cuts in 2008 and 2009 had encouraged Australians to get ahead on their mortgage repayments and between August 2008 and April 2009, the average standard variable mortgage interest rate fell by almost four percentage points.

“There is evidence to suggest that some households used this period as an opportunity to pay down their mortgage ahead of schedule. “The central bank published its previous Financial Stability Review in September 2010, and since then has raised the cash rate from 4.5 per cent to 4.75 per cent in November. The commercial banks responded to the rate hike by raising their variable home loan interest rates by more than a quarter of a percentage point official increase by the RBA.

However, mortgage holders have not coped with the increase with mortgage arrears at record highs. A range of financial stress indicators show that the household sector is not coping well with its debt levels and higher interest rates. While arrears rates on mortgages are higher than the low levels reached during the late 1990s and early 2000s and remain low by international standards – households are doing it tough.

“Household indebtedness remains historically high and recent increases in interest rates have lifted the aggregate debt servicing requirement,” the RBA said. The central bank warned that the improved debt and savings positions of Australian households could change if wages growth was reduced. “Some households could now be more exposed to shocks to their incomes and financial circumstances,” the RBA said.

“A continuation of the recent borrowing restraint would thus be a welcome development as it would add further resilience to household balance sheets and avoid a build-up of risk in the household financial position.” Consolidating debt and not respending could be the answer. We have probably gone half way through the pain that started in late 2007.