The Borrower becomes the lender’s slave – Proverbs

Borrowers ripped off by Billionaire Bankers

Banks knew interest rates would rise. Borrowers did not.

Thousands stand to lose their homes, deposits, repayments, businesses or farms. Banks will patiently wait until they trip up then pounce. Banks collect interest in all those years as they wait. Borrowers slave on to make mainly interest payments.

There are many bank debt solutions for borrowers . If you or someone you know is threatened with foreclosure, or under pressure by the bank, contact us at FairGO or GBAC for a FREE chat.

We will not be stopped from helping home buyers by the federal Debt Management Services regulation designed to protect dishonest banks from our forensic investigation into their home loan practices.

Banks are earning billions and can afford to stand by customers when things get tough. They just don’t care! “Loving your neighbour” or “Good Samaritan the exception rather than the rule.

Bank debt solutions the “Good Samaritan ” gesture

We will help borrowers out within that cruel regulation by the Australian Federal Parliament, as we have done for borrowers all over Australia since federal politicians first de-regulated banks in the late 1980’s, allowing them to rip off customers as the Royal Commission discovered.

Banks think that their big political donations protect them, but through our GBAC and Votergram services, we have provided Australian voters with more power and influence than voters have in any other democracy in the world. As Normie says “You don’t have to suffer in silence”.

Votergram Voice for all Australians

New voice will not affect Votergram Voices

There has been heavy publicity about the Indigenous Voice and whether it might disadvantage other Australians. I don’t think that will happen at all. Thousands of Australians have used their existing Votergram Voice for nearly 40 years to influence society outcomes and sort out personal problems. Above is a picture of the hard copy Votergrams of the 1990’s.

Long after my family had invented Votergrams as a way for “Australians to obtain a fair go at the hands of uncaring governments”, I began to understand how democracy works. I learned that it was quite different to what I had previously thought. Parliamentarians do care, but they are not psychic. They need to be told by the individual voters who want something. Votergrams, when launched were an instant success.

How democracy works
Monarchy or dictatorship gives most power and wealth to the monarch or dictator. With the exception of our recent monarchs, most monarchs have had absolute power over citizens. Dictatorships still do. Dictators and monarchs accumulate vast continuing wealth and superb properties and castles for themselves living a life of luxury with many staff to serve them.

Democracy on the other hand seeks to share wealth and pleasure around the people. Never believe the negative garbage wrongly attributed to Winston Churchill about democracy. It is a fabulous system for everyday Australians. Until very recently we in Australia were a fairly harmonious society with a few notable wealthy exceptions. Today corporate millionaires freely exploit their employees and customers to make multi-billion dollar corporate profits and pay multi-million dollar salaries to themselves, while some of their staff and customers battle to survive. Foreigners loaded with money are enticed into Australia to out-bid young Australians for homes, turning developers into billionaires and young Aussies into lifetime renters in their own country, perpetuating their long-term poverty.

Understanding and acting
So why does that happen in our democracy that promises so much? It happens because the vast majority of people living in democracies do not have any idea of the latent power they have and how much it could improve their lives. For that reasons the vast majority of Australians do not do the simple things required to change and enrich their lives. Those who come to Votergrams soon learn how to do it and they reap the just rewards. In addition, a very small group of very wealthy, aggressive and greedy people know how to make democracy work for them too. These people make it deliver them vast wealth at the expense of the rest of the population. In democracy one gets out of it pretty much what one puts in. Most people put in very little in terms of communicating with their elected parliaments and so get out very little.

Our democratic society is largely controlled by Government. Government is largely controlled by Parliament. Parliament is largely controlled by Voters. Members of Parliament are the only members of the government structure over whom voters have any direct influence. Their careers depend on voters.

But here is the secret
Voters who always vote for the same party regardless of whether or not it does what they want, lose their Voice and influence.

Only individual voters have votes in federal or state elections. An organisation representing 10,000 voters does not get a vote and nor does it mostly influence how its members vote. 10,000 voters have huge political influence, though one may naively think otherwise.
To exercise the power and influence of a voter they must communicate with each and every Member of Parliament. Votergrams make that simple.
They must then politely and persistently persuade the politicians of the benefits of what they want and its full justification. At Votergrams we can help them do that.
To leverage the power and influence that a vote gives to an individual voter, that voter may have to do something else. They may have to use their own voice to gain the support of other voters and in highly exceptional circumstances need to win the support of voters in a marginal electorate.
In short, each voter wanting government to work for them must use their Votergram Voice to “speak quietly and carry a big stick”.

Silent majority can never be heard
But contrary to popular opinion, politicians are extremely helpful to voters with good ideas. Why not? They cannot know the needs of every community or family in the country. They need to be told and they all need to be told nicely. That is how democracy works. It is foolish in the extreme to be offensive to the very people who can solve the problem. Protest is so much last century. The silent majority are silent by choice. By definition they can never be heard. Ask and you will receive is the applicable message for those who want change, but they must ask in the right way.

Over 30 years ago I ran a Votergram Voice campaign for the Pharmacy industry which was having trouble surviving. Members of Parliament kindly responded with three-year Community Pharmacy Agreements giving the industry $1.5 billion of taxpayer support a year. So far pharmacists have received about $50 billion of taxpayer support through that voice. They seem to be currently confronting the very MPs who have been so generous to them in the past. That is the wrong use of their voices as voters. An attempt at brutal bullying of our representatives.

An effective Voice for those who want it
The voice for every Australian who wants it is the Votergram Voice and it will always be effective for those who use it as I have outlined. It does not depend on government funding so cannot be muzzled. But the voter sending a Votergram must work hard to persuade the MPs that what is sought is good and fair. Politicians are very much aware of the challenge they face in representing 17 million voters, 26 million people, many of whom have totally different views on any given topic. MPs cannot possibly please all of 17 million voters all of the time. What is good for Australia or good for a voter in need, is what wins their support. We are fortunate to have such people representing us in Parliament in what has become a largely thankless task. Next time they do what you want, think about thanking them. I wonder how many pharmacists have thanked the parliament for their $1.5 billion of annual support for the past 30 years. School children receiving air conditioning and assembly areas through their Votergram Voices certainly have.

There are plenty of peak bodies lobbying government, but those whose members speak for themselves as well by Votergram, are the ones who win most easily.

A Voice for Victims

“Ask and you will most receive”

Residents Rally
Residents in Queensland have rallied to form an organisation Voice for Victimsqld, to specifically deal with increasing youth violence by giving Victims a Voice. Sydney is currently in the grips of murderous gangland gun violence and deadly domestic violence. But there are also victims of population neglect in housing, education, health care, pay rates, aged care and family services as well as crime prevention. The two groups may be related. Increased housing density can cause violence and road rage, as people get fractured with each other in such close proximity to so many others. It impacts not only crime but, mental health as well.

Population Services
The federal government adds huge numbers to our population annually on top of our natural increase, without funding state and territory governments to ensure that those people have homes, good education, career training, well paid jobs and parenting training to help their children and teens. Child and family support services have been at crisis point for years but still the huge annual population increases continue. Why? To increase demand for goods and services and decrease wages, mainly to profit Big Business Billionaires and their Multi-millionaire executives.

Our democratic system of government gives us every opportunity to live well, but it requires guidance by voters . Politicians, bureaucrats, public servants and government contractors do not have super-brains to know all the answers or even all the problems, even if they do care at all, which many don’t. The only people in government over which we everyday Australians have any power, are the Members of Parliament who we elect and can easily replace. They can be most helpful.

Giving Guidance
Our governments, state and federal, need and do receive guidance from voters. At present the most active and vocal voters guiding government are a tiny minority of the population, the wealthy Big Business owners, executives and their paid lobbyists. The vast majority of Australians in suburbs, towns and cities, on farms or in remote communities, remain absolutely silent towards government.

The Silent Majority cannot, by definition, be heard. They don’t realise that also causes them to be neglected. They think that government knows all the answers and wants to help them. Dream on!

Success
The Votergram service enables every single one of those silent Australians and their organisations to have a very effective and influential voice for guiding government. For decades some of them have successfully guided government by Votergram. But with the help of the many who remain silent we could solve many more problems. Votergrams are highly trusted by those who like to work without great fanfare or notoriety. They use polite persistent political persuasion in the privacy of parliament to achieve their goals. Instead of confrontation this promotes cooperation.

The essence of a Votergram is that its message is short (100 words max) and is sent personally addressed to each and every Member of the relevant Parliament. Politicians are then honoured for the help they give to the senders. You too can send Votergrams or organise a Votergram Campaign. The problems you raise may be personal or national, local, state or territory related. Parliament can be your greatest ally, if handled correctly.

Votergrams – your “Voters Voice”

Hoping does not help!

How can you get a fair go from government? You compete with Big Business leaders paying $10,000 for a meal with politicians and donating thousands to political parties. Does the government really not care about you? It is not going to just happen because you hope it will.

Parliament holds the power!

The government barely knows you exist, let alone what you want, unless someone tells it. Parliament is the only part of government over which you, as a voter, have control. Politicians need to know what you want. But you must tell all MPs to reach the ones who will help you. They will tell the executive government. Parliament controls it!

Have your say the Votergram way!

The easiest way to have your say to parliament is the Votergram way. The highly trusted and successful Votergram service has run since late last century. It gives each Australian voter instant access to all of the most powerful people in the country, their politicians. Politicians, the Members of Parliament (MPs) do work for the people when approached by Votergrams. Politicians are keen to help because their careers depend on the votes of people like you. By gently guiding government, Votergrams are far more subtle and strategically successful than public protest which tends to build confrontation on both sides.

Votergrams are an incredibly cheap way for a person to get good housing, health care, education, aged care or pay packet. It is true “You don’t have to suffer in silence”. But democracy is a voter-driven form of government. The more voters working with you to drive it in the right direction, the more it will do what you want. That is where Voters Network gives voters more power than the Big Business people paying $10,000 to have a meal with a politician and to donating to a political party.

Mimic the Matildas

Shooting goals for good government.
Education, health care, housing, wage equality etc are goals being missed by recent governments for one very good reason. Our politicians cannot get those improvement balls into the nets because those goals are strongly blocked by the Big Business Lobby defenders. They want big business profits to continue booming unaffected by changes in government policy.

Rapid population growth by immigration, un-serviced by government, increases demand, living costs and corporate profits, reduces wages, housing supply, education and health services. Profit is a great thing in our free-enterprise society but not when it is so excessive that it makes some fabulously wealthy and some extremely poor.

It is time for the people to put on their “Voterlobby” tops and start scoring goals for widespread education, health, wage and housing improvements.

The Multi-goal soccer game
Our society is very much like a soccer game with multiple goals and multiple groups all playing to score their own goals. But the goal scorers, the “strikers”, are the Members of Parliament (MPs). Some kick for big business because big business pays their parties with “donations”. Some kick for the Community because MPs are elected by the voters in the community.

Political donations by big business are used by political parties to “buy” votes through advertising.

But there are 17 million voters in Australia and they already own the votes. That is where real power and influence lies. So the voters can ignore election advertising and party political preferences to kick the education, health, housing and wages balls to their parliamentary mid-fielders. They need the skill, accuracy and strategy of the Matildas to that successfully. The MPs will then dribble and pass those balls up the field and kick them straight into goal, despite the best efforts of those defenders who care only themselves.

How Voters can win the game

There is a team that has played for the Australian voters for 37 years without attracting much attention. It is the Voters own Lobby, the Voterlobby and every Australian voter can enjoy its benefits by joining it’s Australian Voters Network. The soccer balls that are kicked into Parliament for our very helpful MPs are delivered by Votergrams to all MPs. Voters having their say the Votergram way, have been scoring goals for decades with the help of MPs and Parliament.

Voterlobby helps voter to do the strategy bit of lobbying. Watching the Matildas we see the various strategies they deploy to get the ball in front of the opponent’s goal near one of their striker’s feet. Votergrams deliver voters suggestions and solutions to all the MPs in Parliament to find the strikers that are interested enough in the topic to kick a goal and get it fixed. Voters Network provides workshops on voterlobbying and helps voters seeking common goals to work together to achieve them.

Mimicking the Matildas

We may never be like these incredible soccer players, but we voters can shoot goals for good government. To do that we must understand that it takes a nation to run a democracy. Politicians in parliament depend on input from voters in order to serve those voters properly. The “silent Majority” will never be heard. But the active voters who use the Voterlobby to politely and persistently persuade their parliament to govern for the people who elect them, will almost always score those goals.

We’ve formed a Bank Customer Lobby

It is not hard to understand why Christ might have got annoyed with the money changers in the temple. I felt the same today.

Bank overcharging and under-servicing is a disaster for Australia. CBA’s $10 billion profit from overcharging and under-servicing customers is an affront to all Australians, as is its CEO’s $10.4 million year’s pay packet. CBA could easily reduce interest rates to existing borrowers and increase them to existing depositors and still earn a tidy profit.

My branch
For 3 days, 5 phone calls I have tried to reach my CBA branch and the customer service to no avail. No calls back! So I went to the branch. Waited 30 minutes to be attended to. Other customers were furious at lack of service. All in all I spent 1.5 hours on what could have been accomplished in a 5 minute phone call. This is not good enough and common to many banks, particularly the Big 4 today.

Let’s Lobby for Better Banking! A Fair GO for bankers and customers.

Today we are launching the Bank Customer Voterlobby to help customers get a fair go, with some Parliamentary assistance and by rating banks on their performance.

Banks continually lobby, bully and bribe politicians. But banks are not the only ones who can lobby politicians. We have helped voters to lobby successfully on many topics over the 30 years since Voterlobby was formed. Voters vote to elect politicians to represent them and we have seen just how helpful our politicians are when approached in the right way. Voters do not have to put up with financial abuse by banks.

We have already provided Bankwatch through which dissatisfied bank customers can alert us of their complaints and a Borrow Better service for getting banks to offer competitive loans. Our associated consultancy GBAC assists borrowers with mediations, negotiations and bank disputes.

Please join the Bank Customer Voterlobby by emailing greg@voterlobby.au. There is no charge! It is free. By voters for voters.

Escaping from the debt trap

Was it Solomon who said that the borrower becomes the lender’s slave? Today it is very true for those whose debt becomes unaffordable due to interest rate rises. What to do if your bank has you trapped in a high priced home, business or farm mortgage that may become more expensive, putting your home at risk through default. By law I can’t tell home-buyers or other consumers for a fee, so I’ll tell you for free.

1 How did it happen
Banks and other lenders knew interest rates would probably rise from historic lows. By offering cheap mortgages for very expensive housing as well as for businesses and farms, they knew that as rates rose buyers would be trapped in unaffordable mortgage debt. Then they could nurse the borrowers along like pet rabbits destined for stew.

The interest they earn will grow with rate rises to give huge returns. Borrowers will slave away to meet repayments. Unmet interest can be added to the debt to earn more interest. If after a decade the debt gets close to the home value, the lenders can move in and sell the borrower up, absorbing the difference between debt and sale value by unbelievably high foreclosure charges.

Escape
On Monday I will start explaining the best options for borrowers to escape this carefully laid trap.

Caesar’s rule was brutal in the extreme

How lucky we are not to live in Christ’s time. But Caesar was not the only brutal dictator in history, so it is worth our while to make our democracy work well, lest a dictator appear again. The link below is worth following on that theme. Christ gave us some very wise advice. It pays to apply it to our democracy.

Disaster stalks society
Australia is walking a thin line between dangerous inflation with massive price hikes and dangerous recession with massive unemployment. Government services are already grossly inadequate for our exploding population and voters are suffering. Violent crime and murder threaten our lives. Regulators conspire with corporate crooks and businesses. Companies are failing and cutting staff. Banks cheat customers.

Driving democratic government
We are not ruled by a ruthless dictator but it could happen as it did in Germany. The people rule in Australia! They drive government via our elected parliament. Australia has a Voters Network, free of party politics, that gives enormous power to every individual Australian, young, middle-aged or old, who want to help drive government to do what they think is good and fair for them and our society. It has done so for 37 years. If you wonder why government is not doing what you want, chances are you have not joined Voters Network and told parliament what you want and why.

Bullies & bribers greedy and dishonest
Our Government is not really driven just by political parties. Greedy ruthless dishonest wealth-seekers bully and bribe our politicians to get a bigger share of our national wealth. We voters all need to stand beside our MPs, support and guide them to do what WE need and Australia needs, instead. When we all share the time, effort and costs, they are tiny. If each person involved contributed as much time and money as they might on a weekly cup of coffee, Australia would be a far better place for everyone.

Get involved and improve your life as well as Australia’s
Democracy is about control of government for voters via the Parliament of politicians who are far, far better than the media will ever let you believe. As a voter you too can and are entitled to, guide government to do what YOU want via our parliament. Australia needs your input for good government. The best way for you to do your bit for Australia is to join Voters Network free and help campaign for what you see as needed.

Businesses Brace for Battle with Banks

“First to boom and first to bust” -the construction industry.

Road to Recession
Australia was moving dangerously closer to recession prior to Covid. To stimulate the economy by encouraging Australians to spend, the Reserve bank lowered interest rates. However debt is the very worst and most dangerous way to spend money. It is money that you don’t have to spend!

But Australians refused to be drawn into debt, having glanced what was happening elsewhere in the world. Lower and lower fell interest rates, but still Australians refused to borrow for fear of bad times ahead. So rates fell further to entice them.

Covid
But then Covid hit and to stop the economy from “tanking”, the government threw billions of dollars at the Australian people and at businesses in particular. Too much perhaps as it turned out. With enough for deposits and interest rates at unbelievably low rates, people rushed into borrowing for businesses, investment properties, farms and homes, cars and yachts, trips abroad. Prices skyrocketed with a bit of help from Russia to cut supplies. Debts skyrocketed along with them.

The low interest rates were too good to be true. It is said that if it is “too good to be true” then maybe it isn’t. Maybe it wasn’t. The interest rates started to skyrocket too.

When we bought our home the mortgage interest rate was 11% fixed for 25 years. The difference was that prices were very much lower even allowing for CPI. It was the same when we bought or expanded businesses and farms. The ultra-high prices as the growing Australian population recently moved into spending mode, meant that the interest was being charged on very high loans and so was very high itself in dollar terms.

What to do – Act early and fast!

There is a Christian perspective in all that we do, so crisis time is a time to reflect on Christ’s teachings. Proverbs has a brief warning “The borrower becomes the lender’s slave.” How true that is for many borrowers today as the media refers to “Mortgage Prison”.

Christians may need to seek assistance or give assistance. The Good Samaritan story guides us and Christ’s warning not to judge others is pertinent. Crisis time is not the time t decide whether someone was unwise to get into difficult debt that puts their business, farm or home at risk. It is time to help. Even a staid Chartered Accountant like me found that in an earlier recession in my younger days I faced a cash crisis with large staff and clients battling to pay. With a big home mortgage to pay I could not go to the bank so in fear and trepidation I asked two friends if I could borrow $10,000 from each. They happily and kindly said yes. I survived and the loans were repaid within a year as my clients were able to pay their bills. It was a great act of kindness. Neither loans were secured or documented except by brief note.

Keep a look out for anyone you can help in any way possible. That is what being a Christian is about and it may help us remove the blot on the Christian copybook caused by some totally inappropriate past behaviour in some churches.

Back to businesses bracing for battle with banks:-

Professionals are not likely to help you if it looks like you or your business will be facing bankruptcy or receivership within 6 months, as there is a serious risk that any fees you pay them could be clawed back by a liquidator or trustee in bankruptcy. So act early to get assistance or you may miss out.

Loans are being extended to cut the regular repayments, but that will increase the actual cost of everything bought on borrowed money, as more interest will be charged and the debt will go longer.

If you spend like mad in your business or privately, the economy might move ahead, or it might go backwards. If you spend up you might help Australia. If the economy goes back, then you might go broke yourself.

Many business people and consumers may decide to protect themselves first. Some have already done so. As consumers they may cut spending to bare essentials; buy only what is on special; take on extra paid work; make rather than buy. Businesses might cut spending to the bone, cutting staff, rent, marketing and that will impact the incomes and profit of other businesses, putting pressure on them to cut spending.

Debtors and creditors
Every situation is very different. For those businesses contacting GBAC we will assess the situation of each business’s debtors and creditors, then talk to them to calm them down. We ask debtors to pay as much as possible off their debts. Cool calm discussion is required to deal with a difficult situation as well as possible for all concerned. Panic is not going to help anyone. Nor is drowning your debtor customers when trying to keep yourself afloat. That can drown everyone. Treating debtors and creditors as you would like to be treated yourself is a good guide. Businesses in cash trouble need to recognise their issues and look for the best solutions.

We will talk to creditors promptly and work out repayment plans that the business can afford and which also help the creditors. They don’t want to send their customers broke. They just want to survive too. Recessions don’t last for ever. Everyone must get through if they can with feasible repayment plans.

Billionaire Bankers
Can they afford to help their customers? Of course they can?
Will they? GBAC has persuaded banks to help loan customers all over Australia for 36 years. It takes research, assessment, leverage, persuasion, experience, skill, strategy and technique, dedication to outcomes. Our aim is Good Banking for Australian Customers. Without customers banks can’t survive. Customers can easily move banks to get a better deal. That is what our Borrow Better service is about.

We start by reviewing the bank loan and overdraft accounts and their documentation to see whether the fault lies with the business or the bankers. Often it is the bankers’ fault. They are the financial experts. They know best when to borrow and when not to; which companies can handle what debt and which cannot. Once the situation is clear then GBAC opens discussions with the bank to see how best to resolve the situation with as little as possible damage to the business or the bank.

Solutions
There are almost always reasonable solutions to any cash or loan repayment crisis. But the sooner they are tackled the more likely is a good solution. Borrowers sometimes get introduced to banks for loans like lambs led to slaughter, by highly paid bank mortgage brokers. The loans often do not match the customer’s needs, cater to economic recessions or ensure ability to service and repay.

GBAC never works for the bank. It always works for the customers alone.

The faster you contact GBAC for assistance the sooner your stress levels will settle and sensible solutions will be identified. As well as helping bank customers solve debt problems, we have run our own businesses and farms, so we know just what it is like to battle bank debt, creditor payments, debt collections, recessions and falling profits. We are now here to help you because we do care about your future.

It will cost you nothing to call GBAC today on 0428 417 496 or 02 9988 3312 for a chat about what is stressing you about your mortgage-secured business or farm loan. We also offer the first hour of actual work on your issues completely free as our small contribution to helping the Australian business and farming community out of a very dangerous situation with their biggest assets on the line.

Banks make billions. Borrowers bear the burden! That’s not fair!!

I think it is in Proverbs we read “The borrower becomes the lender’s slave”. Sometimes borrowers feel they have been beaten up and left by the roadside, so we are tying to do our Good Samaritan bit in a small way. Things are a bit tough for some just now with rates rising so quickly in Australia.

Borrow Better, launched originally as “Moneygrams” in 1987 for $100 ($250 today), helps borrowers contact more lenders for more competitive mortgage loans.

As it is not a “broker” there is no $7,000 or whatever brokerage bill for the lender to build into your loan interest and charges. As Borrow Better lets banks bid for your loan business and you to negotiate for the best possible rates and charges business owners and farmers can do quite well out of it.

One borrower in 1987 saved $300,000 interest for his $100 investment. Dropped his interest rate on a 5 year $1m loan from 24% to 18%. Good to remember that what goes down can go up and interest rates are relatively low.

But those who borrowed at very low rates and are suffering from the increases that the bankers must have known would come, need and deserve whatever help they can get.

For that reason and due to the current cost of living crisis Australia-wide, Borrow Better is being temporarily offered free for businesses and farmers. Make the most of it to get the best deal whether borrowing afresh or refinancing.

Banks will always charge you the highest rate you will pay. That is how businesses sell their products and services and how farmers sell their livestock and crops too.

Competition brings interest rates and charges down.