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Dollars & Cents
TAKE ME I’M
FREEIssue 05
October 2014Foresters Community Finance & Kyabra Community Association
InsideOn The Move
I Need a Cheap Second Hand Car
Finish a No Interest Loan, Get Rewarded With $500!
Rent a New Fridge for $30 a Week. NILS a New Fridge for $15 a Week
How Am I Going to Pay This Electricity Bill
Do You Value Your Assets
Foresters Fair Finance Micro-Credit
How Many Loans Can I Have?
NILS Rewards See Page 6
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On The Move
Moving house can be very stressful as often you have to move in a hurry or when you are not prepared. Planning is key and you need to develop one so that it all goes smoothly. On the financial side the major items are your bond, two to four weeks advance rent and the moving costs themselves. The State Government Department of Housing has an interest free bond scheme but the conditions are restrictive so apply early if you think you are eligible. Then if unsuccessful you still have time for other options. Advance rent is often an issue and trying to save for an advance whilst still paying the current rent can be a challenge. Again ask the Housing Department about a rent advance loan when you apply for the bond loan. Advances are even more restrictive and usually require “special circumstances” which rule out most people. Moving your “stuff” can be costly unless you have friend with a ute. Go through all your stuff and work out what can move and what can go. If you are moving a long way it may be cheaper to donate or dump your old stuff and buy new items with a NILS loan. Get a quote for moving and work out a simple cost benefit, especially for heavy bulky items like fridges and washing machines. A new energy efficient fridge can be a great saver over moving an old power hungry dinosaur. Some traps that we have seen at Foresters are:
• Share Houses – to be eligible for the Housing Bond Loan everyone on the lease must fit the criteria. So if one person is working full time that may rule others out.
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• Bond Loans – are assessed over your last 8 weeks income, so be careful if you do extra casual work or overtime. This may cause you to go over by a few dollars.
• Moving Costs – can vary, so get a few quotes and shop around. If you are really struggling ask around friends and family for help or even approach the service clubs such as Apex and Lions, they may be able to assist.
Remember that NILS loans can be used to update white goods and furniture and community finance loans can be obtained for all purposes such as bonds, advances and moving. As this is a stressful time financially your borrowing capacity may be reduced so the best option is to start saving as soon as you know you have to move or when you have decided to move on.
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I Need a Cheap Second Hand Car
If you need a buy a car for around $3,000, a StepUP loan maybe just the thing. If you live in and around the suburbs of Runcorn, Acacia Ridge, Coopers Plains and Mt Gravatt then you can apply for a StepUp loan at Kyabra. StepUP loans are for people holding a current Centrelink Concession Card or receiving Family Tax Benefit Part A and who have lived at their current address for more than three months. StepUP offers loans of between $800 and $3,000 for personal or household purposes such as:
• Household items including fridges, washing machines, and furniture
• Cars• Computers• Medical and Dental expenses• House repairs• Car repairs
Interest is charged at a fixed low rate – currently 5.99% (Comparison rate 5.99% pa), and loans can be repaid over three years. No fees apply. The loan is provided by the National Australia Bank and is subject to NAB’s credit assessment, which includes a credit report check. Please note cash loans are not available. Please contact the Community Finance team at Kyabra if you are interested in a StepUP loan. If you don’t live in the Kyabra area, you can also apply for StepUP loan by calling:
• Logan East Community Centre – 07 3808 4529• St Vincent de Paul (Ipswich) – 07 3716 1200
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Terms and conditions apply and are available on application.
*Comparison rates are based on a loan of $2,500 over a term of 2 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
©2014 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686
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Finish a No Interest Loan, Get Rewarded With $500!
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. 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.
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Rent a New Fridge for $30 a Week. NILS a New Fridge for $15 a Week
Many people who have a No Interest Loan have purchased a new fridge and are only paying $15 per week. The loan will usually take around 18 months to repay, but after this time the borrower will own the fridge. Most rental schemes will lock you into a contract for 3 years. So after paying $30 a week for 3 years you have paid $4,680! Now that’s an expensive fridge.
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How Am I Going to Pay This Electricity Bill?
The team at Kyabra have helped a lot of people who are having difficulty paying their electricity bills. If you’re in financial hardship, here are some tips:
• When you call your electricity provider ask to speak to someone in their hardship section. If you don’t you may be put through to someone who simply doesn’t understand your situation. To get through to your electricity provider’s hardship program, you may need to say to the phone operator, “I am having difficulty paying my bill as I am in financial hardship”. If you don’t say you are in financial hardship, they may not put you through to the right people.
• Ask someone in the hardship team about the Home Energy Emergency Assistance Scheme (or HEEAS). If you are eligible, they will send you a form for you to fill out.
• If you’re with Origin Energy, talk to them about the Power On program, if you stick to your payment plan they will reduce the amount you owe.
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Do You Value Your Assets?
Recent research shows that only 7% of people renting have any form of contents insurance. If you rent and have no insurance then all the things you own and store in your home are not covered for fire and theft. Your landlord will have insurance to cover the building but this does not cover your property. Just add up the value of all the things you own – household items like computer, TV, fridge and furniture. Then add in your clothes, books and personal items and jewellery, and then include your pots and pans, crockery. Most of us have a fair bit of stuff – even kids leaving home have on average $10,000 of “stuff”. Contents insurance that covers “Fire & Theft” can protect you from the loss of your assets for these two events. Talk to Foresters about the Good Shepherd Microfinance AAMI insurance product especially for renters that provides Fire & Theft cover up to $25,000 for around $3.00 per week. For the price of a cup of coffee you can have peace of mind. This product has a reduced claim excess of only $100. This is much cheaper than any other insurance in the market. So you don’t have to find a big lump sum to replace your item. Contact Foresters on 07 3851 8080 or email [email protected] if you need more information or wish to take out Contents Insurance.
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Foresters Fair Finance Micro-Credit
Foresters can assist you with access to a wide range of micro-credit products. We are contacted by people who are seeking loans for a huge range of purposes and reasons. Our loan products can be used for all purposes except cash loans and day-to-day bills. If you are in financial crisis then a loan is not going to help in the long term and will only increase your stress. Many community centres offer Emergency Relief and the Financial Counsellors Hotline 1800 007 007 can help out with ways to manage these day to day issues.
If you are meeting your every day expenses and have need for some form of credit then we can assist you to understand your financial position and borrowing capacity to either purchase or repair assets or improve the quality of your life by such things as job training, medical equipment, moving or even affordable vacation or family reunions. Foresters can provide a range of micro credit from a small NILS loan for a fridge or other household asset or a Fair Finance loan up to $4,000 for any worthwhile purpose such as cars, training or even small enterprises. We will also ensure you fully understand the process and that the loan is the most appropriate for your needs.
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How Many Loans Can I Have?
Some schemes like NILS will generally have a limit of one loan at a time, but there are no real limits except that you must be able to service all your commitments with no problems. Most people can only find room in their budget for limited repayment amounts and it’s important not to over commit yourself. With a NILS loan the best option is to find this balance and repay a larger amount if possible to pay it off sooner rather than later so you can assess another NILS if required. Limits also apply in other areas too, for example the regulations around small amount consumer loans often known as “payday” loans make an assumption that if you have had more than 3 loans in the last 90 days then you may be in financial stress and extra information and assessment to determine suitability is required. Taking multiple small loans may indicate that your expenses might be exceeding your income. This is now the time to seek help for advice and do a budget to make some changes to avoid any future crisis. Foresters, Kyabra and other NILS providers will do an extensive budget when you apply for a loan. This can assist you to understand your financial position and what surplus you may have that can be assigned to loan repayments. Many community centres also have money management assistance available, you can ask at Centrelink or ring the Financial Counselling Hotline on 1800 007 007.
Community Microfinance Reaching more people by recycling money and providing access to safe, fair and affordable credit.
Foresters Loans Personal loan from $500 to $4,000 over 1 to 2 years for any worthwhile purpose. Call: 07 3851 8080 Email: [email protected] Website: www.foresters.org.au
NILS (No Interest Loan Scheme) Interest free loans up to $1,200 for new household assets (whitegoods and furniture), educational, medical and basic household repairs. To locate your nearest NILS provider visit www.goodshepherdmicrofinance.org.au or:Call: 07 3851 8080 Email: [email protected] Website: www.foresters.org.au Call: 07 3373 9499 Email: [email protected] Website: www.kyabra.org
Step Up Loans Low interest loan from $800 to $3,000 over 1 to 3 years for asset purchases such as whitegoods, cars, computers, medical expenses and house repairs. Where: Kyabra Community Association Call: 07 3373 9499 Email: [email protected] Where: Logan East Community Centre Call: 07 3808 4529 Email: [email protected]
www.foresters.org.au P: 07 3851 8080
www.kyabra.org P: 07 3373 9499
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.
