Steep Australian Housing Cost Increase Cause for Payday Loans

From 2001 to 2011, the median capital city prices of free-standing houses increased 147 percent, even though after-tax income rose only 50 percent over the same time period. This explains why millions of Australians need emergency payday loans cash from time to time.

This is not just about the price of homes and home ownership. The same factors affecting sale prices also affect rental housing – those who are shut out of the house-buying market then tend to rent. All around, particularly in larger cities, housing is taking a bigger bite out of household income than a decade ago.

Housing cost increases may be why payday loans are as popular in Sydney and Melbourne as in Perth, Darwin, Adelaide, Brisbane and Hobart. With so large a chunk of monthly income dedicated to a roof and four walls, working Aussies have less for regular bills and emergencies.

Emergency Expense Events and Payday Loans
Use of payday loans is consequently on the increase in Australia. This is also due to factors of convenience and the Internet (see below). But part of it is the simple math of emergencies: When there is little discretionary income remaining after the bills are paid, what else would one expect when an expensive car repair bill arises? If it costs $600 to make sure you can continue getting to work, can you just toss off your job until the next paycheque? You run the risk of being tossed off yourself, mate.

The online version of payday loans truly make it easier, and here’s how:

• 5-minute payday loans application – That’s all it really takes, either during the workday or from your home computer.
• Receive funds overnight^‡ – Payday loans may also be funded the same day for an extra fee.
• Repay the loan with a bank debit – You authorize the repayment when you sign up for the loan. It helps you avoid late fees due to forgetfulness or time for a check to travel through the postal system.

There’s no telling when housing and income ratios will come closer in line to each other. But consumers are finding ways to cope.

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