Experts warn against resorting to buy now, pay later loans for essentials during lockdown

Experts warn against resorting to buy now, pay later loans for essentials during lockdown Experts warn against resorting to buy now, pay later loans for essentials during lockdown By David Taylor Experts warn that some Australians waiting on government support could be targeting by lenders.(ABC News: Kit Mochan)

Consumer advocates say some lenders are cashing in on those facing financial distress while under lockdown conditions.

Key points:

The Consumer Action Law Centre believes lenders are taking advantage of people still waiting on government support

Financial counsellor Peter Thompson says he has spoken to people turning to buy now, pay later lenders to pay for essentials

Afterpay says it has never enforced a debt nor sold debt to a collection agency

Financial counsellor Peter Thompson has been field…

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Fixed rate home loans are at their lowest ever — but they come with a catch

Fixed rate home loans are at their lowest ever — but they come with a catch By David Taylor The banks want to lock you in as a customer now for as long as they can.(ABC News: Grant Wignall) Interest rates in Australia have plumbed new depths since the Reserve Bank's monetary policy announcement on Melbourne Cup Day,

It's taken several weeks, but following a number of extraordinary policy measures by the RBA (including a formal adoption of Quantitative Easing), at least one bank has taken the decision to offer a three-year fixed home loan rate of 1.89 per cent.

That's low. In fact, according to interest rate comparison site, Mozo, it's the lowest commercial fixed interest rate (with an 80 per cent Loan to Value Ratio or LVR) the country has ever seen.

Fixed rates are dropping to all-time lows because the banks are desperate for your money. So far the evidence shows they're…

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