The Australian loan market seems little more than a debt trap. However, armed with the guidance of Lodex, you can finally live the Great Australian Dream.
The concept of “living the Australian dream” has always placed a marker around owning a house and having a stable income. The price though of actually attaining that dream has seen a rise in debt and an overwhelming anxiety around the debt trap for many Australians. 550,000 Australians are currently in arrears with their financial providers and 930,000 of them admit to dealing with persistent debt daily. That kind of data indicates that this is less of a financial issue, but rather a 360º life-impacting issue for the people dealing with the debt trap. Recent data from Northwestern Mutual’s 2018 planning and progress study found that money is the number one stress for respondents, with 37% saying they felt a high or moderate level of anxiety when thinking about retirement, savings and work. With our finances impacting every area of our lives from where we live, what we eat, to the education we can provide our children, it is obvious that money-related issues can impact Australians long-term and infiltrate into family engagement.
The advice often given to us is to find the best financial product, to switch to lenders who have competitive rates and favourable terms. This advice of course, assumes that all applicants would understand how to identify the best offers, avoid getting caught up in “too good to be true” offers and also know how to ensure the application being put forward clearly positions the applicant in the best way, and to maximise their opportunity of a positive outcome.
The Big Smoke recently surveyed readers, looking to identify trends a bit closer to home and the findings were in correlation with the previous study. We found that 76% of participants admitted to feeling nervous when applying for a loan, and 62% felt the pending loan application impacted their day to day activities and/or their sleep.
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Equally crucial, is that 87% of the participants did not trust their own ability to ensure the best application possible. These statistics indicate that not only are applicants navigating complex terms and offers that are difficult to fully understand, but they aren’t entirely confident of what opportunities are available to them and how to secure them. The reality is, navigating the products is not only time consuming and fraught with misunderstanding, but the applicant is exposing their data to various providers when the product may not even be suitable. Multiple applications can also result in a “busy” credit report, alerting prospective lenders or finding that through an automated process, the application is completely denied. This can result in further hardships of securing the funds simply because the right product wasn’t identified or the right information put forward by the applicant. The process of anonymity becomes the natural solution to this problem, allowing applicants to apply for the product while putting all their data forward for assessment without the risks associated with multiple applications and identification. Unfortunately, lenders tend not to allow anonymous applications, making it difficult for Australians to understand the opportunities in front of them by attaining the quotes required to make an educated assessment.
Bill Kalpouzanis from the disruptive marketplace, Lodex, says “It is far better to get actual indicative quotes on a competitive process like the one that Lodex provides than go to one product provider that you used to use or someone else introduced you to. It’s better to have optionality and this is even more efficient when this happens in a competitive landscape.”
Lodex recognised the problem within the financial landscape, and with that, the emotional turmoil it was causing for many Australians not only dealing with the whirlwind of debt, but the overwhelming nature of identifying which lender and product is the right fit. The platform sought to remove the barriers facing Australians by creating a marketplace that saw banks and brokers “bid” for the business of the applicant, ultimately democratising the process of lending. When once, the applicant was at the mercy of the lender, now anonymous information can be provided and assessed – putting the applicant in full control.
Through Lodex, Australians are able to secure appropriate financial products by being given what has eluded many for decades – the power of choice.