PAYDAY LOAN AUSTRALIA

Interest rates on Thursday were squashed to the lowest ever rate, which has never been below 2 percent in its 315 year history. The rate setters (MPC) pondered the declining state of our economy and made the decision to decrease the rates to the lowest ever.

The latest gloomy figures which, including a new low for mortgage lending in November and a record 16.2 per cent fall in house prices during 2008. The Government have attempted to boost the economy, banks and building societies a further squeeze in credit to individuals and businesses in the first three months of the year.

Homeowners and borrowers have yet to see any gain from any interest rate cut and building society Nationwide has said it will not be helping and will use a “collar” on tracker mortgages, however
a high percentage of mortgage owners with tracker mortgages will be happy as they will see their payments decrease and may encourage people to spend again to boost the economy.

Although the rates have gone down this has yet to be passed on to people who have unsecured loans and credit cards. Customers yet to see any decrease in the rates and it still remains to be seen of the cash strapped banks and building societies will pass the rates onto the consumers. Credit card companies and store cards still charge double digit interest rates and overdrafts are still proving to be expensive, and the struggle to cope over the next three months is not being made any easier by the finance industry.

by Fraser Cox

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