Peer 2 Peer Lending Options (Private Individuals)

[FoxRidersCo]

Is there a platform out there for individuals seeking financing from other private individuals ? Google searches have come up nil.

For debt consolidation and dental works.

I'm currently seeking a loan of $5000 for a term of 1 Year, I'm even happy to pay $1500 in interest which would make the total $6,500 to be repaid. This equates to $250/FN x 26 Fortnights

Due to my circumstances I don't fit the Trad-Fi (Traditional Finance) mould as an eligible borrower. I am a live in carer for a disabled person and I receive the carers pension from Centrelink, but as soon as I tell any potential lenders that my sole income is Centrelink/Government Benefits I'm met with a flat out "application denied" response.

My illion/equifax credit score is considered 'good' at 520 with no judgements, defaults or bankruptcies on file but yet I still find myself being declined at every turn simply because I don't have what the lenders class as "stable income". How is one supposed to get ahead??

If anyone has any ideas or contacts or any information/resources that could help me in the right direction please feel free to PM me.

Aaron

P.S. The bank of mum/dad/family is unfortunately NOT an option. (It's sad yes but no more to be said on this)

 

[scblack]

There is a number of online lenders who will lend those amounts with no credit history etc. No idea of interest rates.

 

[Calvin27]

Some dentists will do payment plans.

How critical is the dental work? If it's critical, you can fast track through the public system. Yes I know it's long waits and all that but mostly free, you just have to kick up a huge fuss to do it.

Otherwise go fund me.

 

[Squidfayce]

Try Money Place. They rate for risk, so will considder non traditional scenarios.

MoneyPlace - Better Personal Loans

MoneyPlace offers low-interest personal loans with fixed rates and no on-going fees. Our loans are innovative, simple and 100% online, so you don't have to deal with a faceless company or pay expensive bank interest rates. Apply online and get your money in 1–2 days. Get a better personal loan...

moneyplace.com.au

I know they accept centerlink income. Centerlink income is considered ongoing, especially under a carer scenario. What you might be coming up against in general is the Term youre looking to borrow. Lenders will want a particular ratio of cash left over. So even if you go say 2 years, but pay off faster you'll be more desirable than saying youll get it done in 1 year.

Money places online process will have you assessed in a few minutes.

 

[FoxRidersCo]

Try Money Place. They rate for risk, so will considder non traditional scenarios.

MoneyPlace - Better Personal Loans

MoneyPlace offers low-interest personal loans with fixed rates and no on-going fees. Our loans are innovative, simple and 100% online, so you don't have to deal with a faceless company or pay expensive bank interest rates. Apply online and get your money in 1–2 days. Get a better personal loan...

moneyplace.com.au

I tried them but no go.

To be eligible for a MoneyPlace loan, please confirm that you are:

• An individual, 18 years or older
• An Australian citizen or permanent resident
• Currently employed and earning over $20,000 per year

 

[FoxRidersCo]

Some dentists will do payment plans.

How critical is the dental work? If it's critical, you can fast track through the public system. Yes I know it's long waits and all that but mostly free, you just have to kick up a huge fuss to do it.

Otherwise go fund me.

The dentists I looked into that did payment plans were offering it via Afterpay or Zip (I'm currently ineligible for ZipPay or Afterpay BNPL also)

I'll look into GoFundMe but I thought that site was for donations and not loans as such.

As for the Dental work I am currently on the state waiting lists, I have had a total of 19 teeth extracted over the past few years with more to still come out.

 

[Squidfayce]

I tried them but no go.

To be eligible for a MoneyPlace loan, please confirm that you are:

• An individual, 18 years or older
• An Australian citizen or permanent resident
• Currently employed and earning over $20,000 per year

Sorry to hear. 20k is already a pretty low bar. At this point it might just make sense to save the 250 per fn till you have what you need

 

[yuley95]

I tried them but no go.

To be eligible for a MoneyPlace loan, please confirm that you are:

• An individual, 18 years or older
• An Australian citizen or permanent resident
• Currently employed and earning over $20,000 per year

Sorry to hear it is so hard to get what you need. I used to work for a an org that had financial counselling for people and the biggest need was after people got into debt with a payday lender. Please dont go down that path (sounds like you are not heading there).

I know that NAB did some research into the damage of payday lending and launched their own micro loans at some point. I dont know if they have eligibility requirements that would limit you from going for one but more detail here

Good shepherd used to do a lot of no interest loans for people for essential things like dental and you may find what you need here.

Good luck!

 

[Halo1]

You might be able to access early release of your super if you have any for dental work.
Everyone should be saying this is not financial advice.. lol

 

[FoxRidersCo]

You might be able to access early release of your super if you have any for dental work.
Everyone should be saying this is not financial advice.. lol

I don't have any super, I used what little I did have (sub 10K) to get my dental works done initially.

Anyway..

I've made an appointment to see a free financial counselor in the new year, who can hopefully help with money management/budgeting and setting up a plan/referrals.

Centrelink can advance me $1000 but not until next year (6 months straight of receiving benefits needed to qualify) so I will take them up on that.

As for the payday lenders they are just greedy sharks, one offered me like $250 and wanted me to repay close to $500 !!! and the guy even had the gall to say "would that help ya"

How are these payday lenders allowed to operate like this even after the royal commission into the financial sector ?? The old addage money talks and BS walks applies here.

 

[FoxRidersCo]

Call me a dreamer/idealist.... But

If I was in the position where I was a multi millionaire or billionaire I would seek to create a lending platform to cater for the disadvantaged people of this world using my own funds as backing. I would offer loans at or even below current reserve bank cash rates and allow flexibility of repayments that actually take into consideration people's personal situations without knocking them down with harsh penalties every time a re-payment is unable to be made. The longer term goal would be to try to reverse the knock on effect that drives people deeper into debt and onto the merry-go-round of borrow/repay/rinse/repeat.

The borrow/repay/rinse/repeat carousel is a beautiful looking yet sinister carnival ride that is hard to get off of once you're on it and it is in motion, but it is deliberately created by those with the Money/Power to keep the poor/disadvantaged coming back to beg for their assistance regardless of the costs to the borrowers (financially and spiritually).

It makes me angry when I hear about banks/lenders complaining or gloating that they made "X" amount of billions in cash profit for the fiscal quarter/half at the expense of their customers.

/Rant

P.S. Yes I understand that macro-economics, liabilities, risk mitigation, inflation, CPI etc.. all play a part in a lending/financing scenario but surely the end result doesn't always have to be solely about the profits. Without the borrowers (the people) there would be no profits.

 

[ozzybmx]

I feel for you man... shit situation

 

[Flow-Rider]

You need to tell them that you're in so much pain you can't eat anymore, I deal with govt departments nearly on a weekly basis for older family. They make everything as hard as possible to dissuade people from getting free services. A lot of people are going to be in your position and just don't know it yet, being sick when you can longer work chews into your retirement funds really quick.

 

[Squidfayce]

Call me a dreamer/idealist.... But

If I was in the position where I was a multi millionaire or billionaire I would seek to create a lending platform to cater for the disadvantaged people of this world using my own funds as backing. I would offer loans at or even below current reserve bank cash rates and allow flexibility of repayments

Sadly, you'd very quickly realise why no one has done this.

There is benchmarking done via the Henderson Povery Index and the Household Expenditure Matrix that defines how much it costs to live and have disposable income.e to either save or pay credit.

Disadvantaged people can and often do fall below this level. It's not some arbitrary number either. It scales and considers location, cost of living pressures based on ages, partner and dependant status and several other factors.

It's also what's supposed to prevent predatory lending and sets parameters for lenders to work within to avoid Crossing the line. Pay day lenders fall outside of this regime due to "small credit" thresholds. Eitherway, it might not sound like a good outcome, but these measures are in place to prevent worse situations.

Untill you speak with a financial counsellor, start saving what you'd spend in repayments. Nothing to lose bu doing this.

 

[FoxRidersCo]

Sadly, you'd very quickly realise why no one has done this.

Because a 1 - 2% interest rate would still have the same detrimental effects as a loan with a higher APR on persons whom under the Indexes/Matrix's is assessed on the scale as an 'unsuitable applicant' due to factors ??

net income < outgoings/expenses
welfare benefits can be stopped at any time for many a reason
reckless/excessive discretionary spending and over extension (streaming services, BNPL, eating out, interest-free purchases etc etc..)
accommodation costs (rent or mortgage)
addictions and associated transactions (gambling/alcohol/drugs)
excessive cash withdrawals
defaults on utilites/rent and existing credit services (credit cards/personal loans/payday loans)

So even giving said person a loan with a 2% interest rate would most likely still be an un-affordable proposition for the borrower to repay.

Got it....

 

[Squidfayce]

Because a 1 - 2% interest rate would still have the same detrimental effects as a loan with a higher APR on persons whom under the Indexes/Matrix's is assessed on the scale as an 'unsuitable applicant' due to factors ??

net income < outgoings/expenses
welfare benefits can be stopped at any time for many a reason
reckless/excessive discretionary spending and over extension (streaming services, BNPL, eating out, interest-free purchases etc etc..)
accommodation costs (rent or mortgage)
addictions and associated transactions (gambling/alcohol/drugs)
excessive cash withdrawals
defaults on utilites/rent and existing credit services (credit cards/personal loans/payday loans)

So even giving said person a loan with a 2% interest rate would most likely still be an un-affordable proposition for the borrower to repay.

Got it....

For the majority of cases unfortunately yes. Generally its not so much the rate, but the actual repayment itself pushes low incomes earners debt to income ratio outside sustainable levels. For lenders its not profitable enough given the risk profile is too high to absorb inevitable losses. It would be borderline irresponsible lending depending on the circumstances.

You can thank the royal commission and the regulators for forcing lenders to be more risk averse (responsible).

I sympathise that it doesn't help you, but the alternative is arguably much worse on a whole.

Hopefully the financial counsellor can point you to some services that may be usefull. In the meantime if you need a hand with budgeting, I'm happy to try and help you put something together, but based on the above it seems like you understand what to do. Separately if you're currently paying for streaming services, happy to share several accs with you so you can cancel your subs and save some cash.

 

[Scotty T]

More benefits for the disadvantaged (direct money, dental rebates, whatever works best) and less tax breaks for the wealthy means a better situation for @FoxRidersCo and co, in my mind it's a pretty simple equation. If an increase doesn't happen then people on benefits will continue having to push shit uphill.

I hope you find some sort of solution, and definitely agree with @Flow-Rider to push as hard as you can for the help that is available but difficult to get.

 

[FoxRidersCo]

So I've canned the idea of borrowing money that would push my debt to income ratio to unsustainable levels.

I contacted the National debt helpline and the guy I spoke to was actually really helpful.

1 tip he gave me was to list my debts on paper in order of least to most and chip away at the smaller debts first which in turn will then free up funds to tackle the larger debts (debt hierarchy) instead of looking at debts as a whole and becoming overwhelmed/anxious.

He has referred me to a free financial counsellor who can fit me in before Xmas

As for the dental situation I may be eligible for a NILS loan and will pursue this with the counsellor.

P.S. @Squidfayce I don't have any streaming services but thanks for the offer anyway.

 

[Litenbror]

So I've canned the idea of borrowing money that would push my debt to income ratio to unsustainable levels.

I contacted the National debt helpline and the guy I spoke to was actually really helpful.

1 tip he gave me was to list my debts on paper in order of least to most and chip away at the smaller debts first which in turn will then free up funds to tackle the larger debts (debt hierarchy) instead of looking at debts as a whole and becoming overwhelmed/anxious.

He has referred me to a free financial counsellor who can fit me in before Xmas

As for the dental situation I may be eligible for a NILS loan and will pursue this with the counsellor.

P.S. @Squidfayce I don't have any streaming services but thanks for the offer anyway.

Thanks for sharing your experience @FoxRidersCo hopefully you will get the support you need and the info here can go on to help others.

 

[Squidfayce]

Hope things improve for you soon. Dental shit is horrible to suffer through.