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Australia and savings

January 1st, 2019 at 11:42 pm

One thing I have noticed on this website is that in Australia it is hard to be able to get any sort of credit unless you have a great income...if you don't work yu will never get a loan for a car/house or even a personal loan or CC....Our banks never offer any incentives to stay with them at all...so in a way I think it is a little easier to save and stay out of debt over here as we know we won't get all the credit you get in America....but in saying that it is so hard to save for a house over here as you need a minimum 3% so for a $300,000 home (which is a very basic home) you need $30,000 ($20,000 of which is fees) so that really sucks but I find it interesting the differences...what are your thoughts

9 Responses to “Australia and savings”

  1. creditcardfree Says:

    We Americans have heard this comment before. It can be difficult for anyone to save large amounts of money. It simply takes time or a large income. Most Americans are likely slaves to the lender and their payments. They can't imagine saving because credit is so available, but yet they get in too far over their heads as a result. I think there is likely a balance between the two...a little less credit offered in the US would be okay, and likely more in Australia and elsewhere where it is much tighter.

  2. Smallsteps Says:

    It is interesting to note the differences. Far too often people assume people have the same situation wherever they are. That sucks that 2ok are pretty much fees. As for the banks does Australia not have too many choice like we do that is why the incentives too many banks not enough people who have money to go around.
    I think America is way too easy to get credit and simply put just like alcohol People need to KNOW their own true limit. And they DON"T.
    I remember a time when ( I was a young child) that here too you needed a stellar income and history to get credit. My dad was so proud he qualified for a credit card. People lived more frugally and did not try to buy everything on credit.

    The concept of easy credit was just to sell more and more whatever and frankly so many do NOT seem to care really if the bill gets paid or not. That is part of why we have so many bubbles ready to burst.
    AFTER they sold all the homes to the people who could manage a mortgage they developed new DEALS with no down or smaller payment programs putting people unable to manage money in OVER their head. so lots of those home are foreclosed and then RESOLD.

  3. mumof2 Says:

    I have to agree that I think to many people get in over their heads and then fail...yes smallsteps it is a lot of money and it use to be in the actual loan but not anymore which makes it really hard for people especially when they are paying rent as well...rent over here is expensive as well..most pople that I know (unless have a really really good income) rarely have 2 cc most only have 1...funny we thought that our $5000 CC was a high amount apparently not from what I have read over there...no we have 4 major banks and now we have a few credit unions and online banks here that are making them be more honest but they don't ever offer rewards
    I think a better balance in both countries would be great...great to see others opinions as things that you talk about like 401ks etc we don't have here

  4. Lucky Robin Says:

    Saving up a down payment for a house requires a lot of sacrifice. A lot more than many people realize. It can be very frustrating. I've done it twice now and have nothing to show for it due to medical expenses and a long bout of unemployment that we still haven't recovered from one year later. I'm not sure we'll ever own a house again.

  5. Homebody Says:

    We were able to buy an owner financed 1.25 acre lot when we were 25. The loan amortized over 4 years with $7000 down. We lived rent free for 4 years so that is now we saved the $7000. Then I got pregnant after DH had written up house plans. We freaked out, sold the lot and bought our current home. We about broke even on the property after fees, but it was a nice chunk of change, enough for a 20% down. Paying rent and savings seems like it would be very difficult.

  6. mumof2 Says:

    Lucky Robin I completly understand how you feel 3 of us have chronic illnesses and can't work, we are good with money but paying rent and saving a deposit is really hard...but we do our best and maybe one day we will own one again...thats our goal and we strive for

    Homebody wish we could live rent free we would have 20% deposit in no time...that would be great

  7. Amber Says:

    Wow I was never aware of the difference, interesting. As with CrediCardFree, I agree most Americans are slave to the lender, I think we become impatient and want things now vs saving for it. I’m actually guilty of this

  8. crazyliblady Says:

    As hard as it would be for some to hear, I think credit should be harder to get here, as those who can't afford get credit cards, car loans, and home loans that they can't afford and go bankrupt because of it. What are the banks and finance companies thinking giving loans to people who clearly cannot make the payments? I can't say that I know anything about the situation in Australia, though.

  9. mumof2 Says:

    Amber a lot of people are guilty of that its what people are taught I think..instant gratification...it's what they are brought up with...its sad but true...crazyliblady it is really easy over there but really hard here in australia..I just wish it was a little more equal...a little harder over there and a little easier over here...and banks over here don't take foreign income into account (they just don't include it) but the tax office etc does so it becomes a catch 22...all income is based on what you get where but banks and that don't recognise or use it so even if you have a good income from another country (which some do due to foreign military/ oil rigs etc) they are classed as having no income...its bizzare but how they work it

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