More women using bad payday loans but new plan could help beat the credit crunch

Queenslanders who are struggling financially will be the focus of a new plan to help them access financial services and avoid unscrupulous payday lenders.

The Queensland Financial Inclusion Plan delivers on a vision for all Queenslanders to have access to support for a strong and resilient financial future.

Speaking at an Anti-Poverty Week function today (19 Oct), Communities Minister Shannon Fentiman said that women in particular were at risk of getting stuck in an un-ending debt cycle with the number of women using payday loans increasing dramatically in the last 10 years.

“This program will provide real alternatives to unscrupulous payday lenders and rent-to-buy schemes to make sure people don’t spiral into debt,” Ms Fentiman said.

“This particularly applies to women who are the fastest growing demographic accessing payday loans. There has been a 110 percent increase in the number of women accessing pay day loans since 2005.

“Women can be hit particularly hard by financial pressures, especially if they are caring for children or the elderly and their earning capacity is affected by that.

“But we also know domestic violence often involves financial control and that can make it very difficult for women to leave abusive relationships, so having a sensible option for financial assistance will be very important for these women too.”

The plan delivers a cross-sector, whole-of-Queensland response to improving financial resilience and inclusion for Queenslanders, supported by strong partnerships with the financial and community sectors.

As part of Queensland’s response to financial hardship and exclusion, the State Government has invested $25 million over four years to deliver the Queensland Financial Resilience Program, announced in the 2016–17 Budget.

The program will include 29 financial resilience workers and counsellors, continued emergency relief and the establishment of Good Money stores in Cairns and on the Gold Coast.

CEO of Micah Projects Karyn Walsh said these stores would offer safe, affordable and responsible financial services for people on low incomes.

“These Good Money stores are a first for Queensland,” Ms Walsh said.

“Queensland’s most vulnerable to financial exclusion are also some of the most vulnerable members of our community.

“These include older people, young adults, Aboriginal and Torres Strait Islanders, women, especially those experiencing domestic and family violence and people with disability, to name a few.”

Ms Fentiman said the plan was shaped with help from representatives across the financial and community sector.

ENDS

Media Contact:                                                 0422 580 342