As reported by the Australian Securities and Investments Commission (the ASIC) in a recent communiqué, there are going to be several forthcoming amendments and alterations to the rules and regulations regarding credit card accounts in our nation.
The analysts and researchers in the Commission found that an inordinate number of Australians are besieged by substantial credit card debt due to overutilization, unconscionable interest rates, and late payments that cause minor expenses to become exponentially more taxing in a relatively short period of time.
Is the Problem Really That Bad?
Financial difficulties are nothing new in Australia, especially when considering the unprecedented commercial activity that has swept the country since the turn of the millennium. The credit card debt issue has transformed into a serious matter over the past several years:
- The ASIC ascertained that nearly 22 million new credit card accounts were inaugurated during the last half of the decade, and the aggregate amount of charge card debt in Australia is now upwards of $44 billion.
- You might think that this figure is in lockstep with a growing economy and increased consumer confidence, which is true to a certain extent, but more than two-thirds of our national credit card debt is derived from accrued interest rate charges, with another $1.5 billion stemming from account-related fees and surcharges.
- Almost one in every five Australian citizens state that credit card debt is their most pressing and stressful concern.
- Australians are also exhibiting some cognitive dissonance about their credit scores. For instance, roughly 35% of Australians actually believe that a pay raise increases their credit scores, and the vast majority think that someone with a great credit score can receive better loan terms than an individual with an average rating, but neither of these things are true.
The most beleaguered credit card users in Australia are most certainly the small business owners, or SMEs. Due to the fact that a massive subsection of SMEs cannot qualify for budget-friendly bank loans, the big Australian financial institutions usually back them into a corner by offering nothing more than a high interest personal credit card. To make matters worse, the terms, stipulations, and complex vernacular in the contracts tend to be extraordinarily convoluted and obscure, which is yet another reason why the ASIC is pushing new reforms in the lending sector as a whole.
The Reforms Won’t Be a Cure-All, So Here’s What You Have to Do
If you have reached a dead end with regard to your personal debt, but wish to continue growing and expanding your entrepreneurial prospects, it’s in your best interests to link up with a private money lender that specialises in delivering bad credit business loans.
These reliable, lawfully sanctioned financiers can offer a vast array of funding routes and you don’t need to have an immaculate credit score to obtain a quick and forthright transfer directly to your account. The most advantageous aspect of this bankroll alternative is that the annual interest rates are markedly smaller than the average credit card account.
This will enable you to swap out your devastating charge card debt for a more manageable, practical obligation, so take some time to complete your online pre-approval form right now.