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Cost of living pressures push vulnerable to payday lenders

Feb 07, 2012

Mark Goldsworthy MP

Shadow Minister for State/Local Government Relations
Shadow Minister for Veterans’ Affairs
Shadow Minister for Consumer Affairs


Cost of living pressures push vulnerable to payday lenders

Increasing cost of living pressures are placing South Australian families under continued financial pressure, forcing them to seek assistance from high-cost, short-term money lenders as a last resort.

A recent report from the SACOSS Cost of Living Summit confirms that issues have been raised with payday loans relating to the cost of food and utilities

ABS statistics recently revealed that inflation had increased by 33 per cent since 2002, while in the same period, water bills increased by 178 per cent, electricity bills increased by more than 106 per cent and housing rents increased by almost 46 per cent.

“Unfortunately, vulnerable South Australians are turning to short-term money lenders for assistance to meet these increases in the cost of living,” Shadow Consumer Affairs Minister Mark Goldsworthy said.

“But this often adds to their problems, because of the exorbitant costs associated with the high interest rates and charges that are applied.

“I have spoken to Mark Henley from UnitingCare Wesley who confirms my view that the Labor Government carries some responsibility for people seeking funds from payday lenders.”

Mr Henley said, “The rising cost of living and flat incomes are pushing people to maximise their credit cards to the limit and then into risky lending practices.”

“Under this Labor Government, South Australian households have been burdened with massive cost of living increases,” Mr Goldsworthy said.

“South Australians in Ramsay and Port Adelaide should not forget this when they go to the polls and vote on the 11th of February.”

 

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