Loan programme 'helps those who cannot access typical Aussie credit'

There has been high demand for a loan programme designed to help consumers who cannot access mainstream Aussie credit, according to one publication.

A loan programme devised to help people with low incomes who cannot access mainstream Aussie credit is experiencing high demand, one publication observed.

The Dandenong Community Advisory Bureau - which formed the StepUP Loan service - has received 40 applications since it brought in the initiative, the Dandenong Leader reports.

This response could encourage other large corporations to bring in similar methods to help out consumers.

Centre manager Jinny McGrath noted that two deals have already been approved and most people have applied in order to purchase second-hand cars or have their motors repaired.

She added: "If a washing machine or fridge breaks down they end up getting it repaired on the credit card and pay lots of interest."

But those on low incomes who are attempting to save money may like to take heed of advice from Align Financial adviser Darren Johns, who suggested that people should put money in the savings account of a partner with a lower tax bracket, the Sydney Morning Herald reported.

By Joe Letts