inside - kyabra community association...a bad credit rating. with our income and expenses we can do...

Dollars & Cents~ 1 ~

TAKE ME I’M

FREEIssue // 01

September 2012By Kyabra Community Association Inc.

& Fair Finance Australia

InsideCommunity Finance - Reaching More People by Recycling MoneyNeed Finance for up to $3000?Fair Finance Australia - Community Based LendingRenting Household Goods... It Sounds Ok, But Is It?Finish a No Interest Loan, Start Saving and Get Rewarded With $500As the Temperature Goes Down the Electricity Bill Goes UpWhere are Those Documents?Computer Says No!


Community Finance – Reaching More People by Recycling Money

If you had a bad credit history or if the bank thought you weren’t able to repay the loan, you were told to go elsewhere. In the last few years there has been a change and now there are alternative ways to get a loan for people on low incomes. Community Finance is a way to access safe, fair and affordable credit. Community Finance providers are not-for-profit and so they don’t have to charge fees and penalties which can cause financial hardship and distress.

But unlike the big players such as banks, Community Finance providers don’t have billions of dollars, rather they have a relatively small capital fund which they can use for loans.

While this fund is small, it can help many people on an ongoing basis as the loans are paid back. In other words money is recycled in the local community benefiting not only the borrowers but also local retailers who employ local workers. Kyabra Community Association, Fair Finance, Logan East Community Centre and Elorac Place are just some of the Community Finance providers in the southern suburbs of Brisbane. If you, someone in your family or a friend are needing financial help, contact a local Community Finance provider first.

It wasn’t too long ago that the only place to get money fast was at the local pawn broker. For many people on low incomes the chance of getting credit from a bank was pretty low.

QUICK TIPCOMMUNITY FINANCE IS A WAY TO ACCESS SAFE, FAIR AND AFFORDABLE CREDIT.


Need Finance for up to $3000

A StepUP loan can be used for items such as fridges, washing machines, cars, computers, furniture, medical expenses and house repairs. The interest rate on the StepUP loan is 3.99%. A community worker helps you fill out the paperwork to get the loan that is then assessed by the

National Australia Bank. While a credit check is required, the community worker may be able to help to determine if your credit history will affect your chances of receiving a StepUP loan. For more information contact the Logan East Community Centre.

A StepUP loan may be a good option for a safe low interest loan of between

$800 to $3000.

QUICK CONTACT

LOGAN EAST COMMUNITY

CENTRE

P 07 3808 4529 E lecna@

lecna.org.au W lecna.org.au


Fair Finance Australia – Community Based Lending

Our basic loan product has no application fee and an interest rate that is fair and affordable. Other loan products such as a special small business loan and a No Interest Loan (NILS) for people on a concession or pension card are also available.

The basic FFA loan can be for any worthwhile purpose and we

have no fixed criteria and we indiviually assess each client’s ability to repay a loan on a case-by-case basis. However, our assessment process is thorough and we will only approve a loan if the client can provide evidence that they will be able to service the loan without causing additional stress or financial

Fair Finance Australia (FFA) is a community development finance institution that provides small loans from $1000 to $4000 for people who may be excluded from main stream lenders such as banks and credit unions.

QUICK CONTACTFAIR FINANCE AUSTRALIA

P 07 3851 8080 E fairfinance@ foresters.org.au W fairfinance.com.au


difficulty. The special loans and NILS do have fixed criteria and purposes, which can be easily explained by contacting one of our lending officers.

Our major mission is to find the best solution for our clients. That may mean suggesting they seek better solutions to their financial stress such as payment

arrangements, other loan products that we do not offer, or even financial counselling. Just getting access to quick finance is not always the best long term solution to an immediate issue and can just be the start of a debt spiral. Contact the Fair Finance team for details on how to apply.


Renting Household Goods… It Sounds Ok, But Is It?

Unfortunately the reality is often not so good. Once you start renting you are legally locked into a contract which can last up to 3 years. Many people have found that after 3 years they have actually spent three times as much as they would have if they bought the items new.

Not all rental companies are the same. Some rental companies will ask you to purchase the

items at the end of the term. If you can’t afford to purchase them, they take the goods away. Better rental companies allow you to take possession of the items at the end of the agreed term for a small fee. If you need household items and you’re thinking about renting, talk to a Community Finance organisation first.

There are an increasing number of companies promoting renting as an alternative to buying. And it does sound good. You only make small repayments yet you are able to get TVs, lounges, white goods and much more.


QUICK TIP

MANY PEOPLE HAVE FOUND THAT AFTER

3 YEARS THEY HAVE

ACTUALLY SPENT THREE

TIMES AS MUCH AS

THEY WOULD HAVE IF THEY BOUGHT THE

ITEMS NEW


Finish a No Interest Loan, Start Saving and Get Rewarded With $500

Simply save up to $500 within 12 months, and the National Australia Bank will add an additional $500. Several people who have received a loan from Kyabra have already completed their AddsUp matched savings plan and have received a $500 payment from NAB bank.

If you are about to finish your loan or you have already completed a loan from Kyabra and you want to apply for the AddsUp Savings Plan, contact the Community Finance team at Kyabra.

Do you like the idea of receiving $500? If you complete a No Interest Loan with Kyabra you are eligible to apply for the AddsUp Savings Plan.

QUICK CONTACTKYABRA COMMUNITY ASSOCIATION

P 07 3373 9499 E kyabra@ kyabra.org W kyabra.org


As the Temperature Goes Down the

Electricity Bills Go Up

Sometimes this bill can be just frightening particularly if we simply don’t have the money to pay it. If the bill isn’t paid the electricity can be disconnected – which is the last thing anyone would want. Here are some suggestions other people who are on low incomes have suggested that have helped them to get on top of their electricity bills.

Make a regular fortnightly payment to your power provider through Centrepay – This would come straight out of your Centrelink Payment before it goes into your bank account. If your expect your quarterly bill to be around $400, you should be

making a fortnightly payment of no less than $45.

Have your electric heater on a low setting. At a high setting, many electric heaters use 2400 watts. The hourly cost of running a heater at 2400 watts is around 72 cents an hour. If you run the heater 4 hours per day for seven days you would spend around $20 per week. If you continue to use the heater over a 3 month period you can end up spending over $240. If you want to reduce your heating cost turn the heater down. If you only use 2 bars of a radiant heater (1600watts) your 3 month heating costs drop to $160 and if you only use one bar (800 watts), it drops to $80.

Winter is the time of year we use more electricity to keep warm, to dry our clothes

and to heat our water. But the more electricity we use, the more money we pay

when the electricity bill arrives.

QUICK TIP

TURN YOUR ELECTIC

HEATER TO A LOWER

SETTING, YOU COULD SAVE

UP TO $80 THIS WINTER


Where are Those Documents?

The sorts of things asked for are recent bank account statements, pay slips or Centrelink payment statements, utility bills and tenancy agreements or leases. These are all required to help you develop your budget to prove to the lender that you can repay the loan without hardship or difficulty. Sometimes you are needing the loan in a hurry and finding these documents just adds more stress to the process!

The solution of course is to be organised and have all these documents ready at hand. Often easier said than done as they

tend to get scattered around the house or get thrown out or lost! One idea that works for some is to get one of those expanding document filing cases around the size of a small briefcase. Most stationery suppliers have them at a reasonable price. You can then quick file the recent stuff, once a year or at tax time throw out anything too old and always be ready to grab the file by the handle and take to your interview for your community based loan or any other time that you may need access to your document life.

If you have tried to get a loan recently from a bank or community based lenders offering small loans and NILS you will know that they ask a lot of questions and request documents to back up these questions.

QUICK TIPONE IDEA THAT WORKS FOR SOME IS TO GET ONE OF THOSE EXPANDING DOCUMENT FILING CASES AROUND THE SIZE OF A SMALL BRIEFCASE.


Computer Says No!

The two most frequent reasons are insufficient disposable income to comfortably repay or a bad credit rating.

With our income and expenses we can do a budget exercise to find out what unallocated or disposable income we have each week or fortnight. We can seek assistance from a financial counsellor or family and friends to do this budgeting exercise or even go online to Money Smart to find easy tools.

How do we find out what our credit rating is? That too is not too hard if we can go online or ask someone with internet skills to help us. We can apply to the credit rating agencies for a copy

of our own record. As it is our own record we are entitled to a copy and they have to provide it free to us. They do charge if you want it quicker than the normal 10-14 days, but that is rarely required. See www.mycreditfile.com.au. You need to scroll down to the “Free – Find out more” grey button to access the information about a free report.

Once you receive your copy you can see if anyone has lodged credit defaults against you. You can then contact them to dispute it if the record is incorrect or make a payment arrangement to clear the debt so that you can soon be back towards a cleaner record.

Sometimes when we apply for a loan we get refused – most main stream lenders will

never tell us why – we are just left in the air to guess why.

QUICK TIP

THE TWO MOST

FREQUENT REASONS ARE INSUFFICIENT

DISPOSABLE INCOME TO

COMFORTABLY REPAY OR A BAD CREDIT

RATING.


www.fairfinance.com.auPh: 07 3851 8080

Activities, Events & FYIs

www.kyabra.orgPh: 07 3373 9499

Play & Grow New GroupCome and share your morning with other parents with young children. Creative activities and learning opportunities will be offered free of charge.

When: Thursdays, 9:30am - 11:30am Where: Kyabra Community Association, Kyabra Street, Runcorn Call: Trish on 07 3373 9435 Email: [email protected]

Gemstone Park Play BusAll welcome every Thursday except in wet weather, call ahead to check if the bus is coming.

When: Thursdays, 9:30am - 11:30am Where: Gemstone Park, off Watson Road, Acacia Ridge Call: Jean on 0403 152 436

Circle of Security for Parents, Term 4A FREE eight week training group offering a deeper understanding of relationships, attachment theory and our children. Bookings essential.

When: Oct 15 to Dec 3, 10:00am -12:30pm Where: Kyabra Community Association, Kyabra Street, Runcorn Call: Trish on 07 3373 9435 (0439 949 700) Email: [email protected]

Kyabra Recovery ConnectionsA 3-4 hour forum for community members supporting someone experiencing mental health issues. It includes easy to understand information about personal recovery and where to go for support. It also includes various guest speakers, shared stories of recovery, and a Q&A. Come along and meet others with similar experiences.

When: 22 Sept, 1:00pm - 5:00pm Where: Garden City Library, Cnr Logan and Kessels Road, Mount Gravatt

When: 8 Dec, 10:30am - 2:00pm Where: Garden City Library, Cnr Logan and Kessels Road, Mount Gravatt

Call: 07 3373 9499 Email: [email protected]

Personal Loans Personal loans for small emergencies & unexpected needs.

Call: Fair Finance on 07 3851 8080 Email: [email protected]

Disclaimer: The information contained within this newsletter from all writers is provided for informational purposes only and is not intended to substitute obtaining professional financial advice.