House debates

Wednesday, 27 November 2019

Statements by Members

Household and Personal Debt

1:39 pm

Photo of Milton DickMilton Dick (Oxley, Australian Labor Party) Share this | Hansard source

Since parliament last sat, there's been outrageous new data released by the Consumer Action Law Centre and the Stop the Debt Trap Alliance which has shown that the number of households currently holding a payday loan is now fast approaching the one million mark. Payday loans are almost exclusively used by people on low or very low incomes to try to keep their heads above water. With flatlining wages and low incomes as hallmarks of this government, research has shown that 15 per cent of people who take out a payday loan will fall into a debt cycle to the outrageous fees and interest rates of almost 900 per cent. An estimated 324,00 Australian households have been allowed to enter a debt path that may result in bankruptcy. This represents a rise of 23.13 per cent of all borrowers, with 41 per cent of these being women and single parents. The Consumer Action Law Centre report was compiled by more than 20 members of the Stop the Debt Trap Alliance. They are out there every day fighting against the loan sharks. Sadly they do not have a government that is worried about people being ripped off by loan sharks in this country. Every single member opposite should be aware of this outrageous predatory behaviour by loan sharks in their electorates, yet they sit there and do absolutely nothing. We will continue to raise this as an issue. It has been years and years. All we need is for the government to have the guts to stand up— (Time expired)

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