PAYDAY LOANS ARE ON THE MAJOR ROLE IN AUSTRALIA, AN Australian researcher has claimed.
“The US can only compete with the low cost loan that has been offered to consumers in Australia, and it’s very limited to Australia,” Professor of Economics, Andrew Cawthorne, from the University of Western Sydney, told the ABC.
“It is the largest loan available in the US, and there is a lot of competition there, and I think that will continue to be the case for the foreseeable future.”
The US offers a range of loans, including auto loans, home loans, payday loans and small business loans.
It is one of the few countries in the world that can offer a payday loan.
But in Australia the vast majority of payday loans are available through payday loan companies, like paydayloan.com.au.
In the United States, paydayloans are available on the web at paydayloaning.com and at paydaylending.com, with some lenders offering them through direct credit cards.
In Australia, payday loan lenders only have to accept a certain amount of money in advance.
“They have to give a certain number of days’ notice before they can offer you a payday or a credit card loan,” Professor Cawton said.
“There are a lot more options out there, so they are likely to be more effective.”
He said there was also no competition in the country between payday lenders.
“We haven’t really had competition in Australia for a long time, so there is no incentive for lenders to expand,” he said.
The ABC contacted two of the largest payday loan firms in Australia and was told they were not aware of any competition between them and payday lenders in Australia.
“In terms of direct credit card lenders, we do not offer payday loans,” a spokesperson from one of them told the BBC.
“Payday loans are very popular, and we have been doing so for over 10 years, so we are not sure why this is the case,” he added.
“Unfortunately, the industry in Australia has been quite fragmented, so it is hard to find an exact match.”
However, we are committed to providing the best service possible to our customers, and the availability of our credit cards is not a factor in that.
“Professor Cawson’s research is based on information collected through the US Bureau of Labor Statistics’ National Employment and Earnings Survey (NEA-S).
His study found that of the roughly 6.6 million people in the United State, only about 300,000 people have access to payday loan loans, and less than 1 per cent of people have an auto loan.”
This means that of these 600 million people, only approximately 500 million of them have access in any way to payday lending,” Professor Pauline Cavanagh, a senior economist at the Centre for Financial Studies at the Australian National University, told Business Insider.”
For the vast number of people who do have access, they have to go through payday lenders to get a loan.
“In Australia the average annual income of a person without access to credit is around $1,300, compared to $15,000 for a person with credit.”
If you have a person in Australia who is poor and has a car loan, the car loan may be $300,000, and they can’t get a payday,” Professor Tania McGeown, a research fellow at the University the Institute of Public Affairs, said.
Payday loan lenders are known for offering low rates.
Professor Cavanag said that was because of the way that payday loans were structured.”
When you look at payday lending, the lender has to be able to justify that they have enough income to cover the interest payments.
“So that’s one of those things that are very important,” he explained.
“One of the reasons that the lenders are getting a lot less interest from the banks is because they are able to make the loan less risky, which reduces the risk of them defaulting on it.”
Professor McGeawn said the way in which payday lenders offered payday loans could have a significant impact on the amount of people accessing them.
“As people are going through the system, if they are being able to borrow money at a low rate, and that’s when the interest is paid, then that’s going to be a huge amount of interest for the bank,” she said.
Professor McGlawn said a low loan rate could also mean a large amount of debt was being taken out.
“With payday loans you’re paying the interest back over time, which is an interesting thing,” she explained.
Ms McGeoff said while there was no direct competition between payday loan providers in Australia or the United Kingdom, there was competition from overseas lenders.
Professor Tania said there were other factors that could affect the amount people could borrow, including the