Aussie Debt Solutions

The word around town is that there are hundreds of lawyers and insolvency experts just waiting for the government to allow recovery action to be taken in respect of bank debt problems.

What has Covid 19 done to your business loan-servicing ability? The motto “Be Prepared” is more relevant today than ever. When patting a lion it is important not to make it angry. Seek the good solutions and never give up hope!

If a loan problem needs fixing it needs fixing fast. You don’t want to start on that when the bank has appointed an insolvency expert,  or receiver or served you with a foreclosure notice.

It is too late then!!

Warning signals

When the bank first signals that it is unhappy with your loan situation, that is the time to start building goodwill with the bank and fixing the situation. Business debt mediation, sometimes called SME debt mediation, is available, but before you go to mediation you need a skilled negotiator on your side. There are SME debt mediation services that can be used.

Banks used skilled lawyers and negotiators to win at mediation. You need an equally good team on your side of the table. The fundamental rule is “Do not trust any bank until they have given you a really good reason for trusting them”.

GBAC has the where-with-all to win
Nobody else in Australia has the strategies and techniques that we have developed over the past 30 years of negotiations. We know exactly what it is like to be under bank pressure as we have run businesses with bank loans ourselves as well as helped hundreds of borrowers cope with theirs.

As soon as banks were deregulated in 1987, Greg Bloomfield converted the GBAC Chartered Accountancy firm into a specialized Bank Debt Negotiator. Since then we have saved our clients millions of dollars through debt write offs of up to 100% and saved their business assets and homes. Borrowers need loan help when they are looking to borrow. They need debt help when things go wrong with the loan. GBAC provides both. See what clients have said.

Identifying the problems and solutions
Bank debt problems usually require more than just a “ restructure”, but sometimes that does the job by changing loan terms or refinance.

Since we started the Bank Debt Negotiator industry in 1987 many self-styled “experts” have jumped on the band wagon with little experience and few or no qualifications. GBAC comprises qualified and experienced accountants with experience at running their own unrelated businesses.

AFCA
It is important  to know that AFCA is not an Australian Government body. It is a body owned by and comprised of banks the finance industry. We work for you whereas AFCA is owned and funded by the banks.

From Aussie Debt Solutions
Prove the loan was always unaffordable – bank knew, you didn’t
Demonstrate that you were caught in a debt trap
Sell the bank on a feasible repayment plan
Obtain a debt discount from the bank – more common than you think
It is unreasonable if due to security asset value decrease
Refinance –  others will probably leap at the chance to lend to you
Seek parliamentary assistance by Votergram if unfairly treated
GBAC assisted loan, business or farm management
Increase profitability with GBAC ‘s assistance
Sell assets you need least, to clear, reduce or refinance debt
Restructure the loan over a longer term. We don’t support debt consolidation
Increase your solvency by various strategies
Maintain a “bank first” loan management system
Obtain an extension of time for future loan repayments
Modify your enterprise to better cope with the debt
Monitor and report to parliament on bank or receivership failures
Keep a written record of bank advice or advertising to entice you to  borrow
Don’t let the bank bully you. Call GBAC for support
Keep digital record of misleading  online ads & website
Identify every breach of the banking code or law – GBAC can help

Reports are that many Aussies are saving money and cutting spending contrary to what the government thinks will lead to a recovery.

By the same token Aussies are said to be among the most indebted people in the world. So Aussie Debt Solutions are important to develop.

Corporate profits and executive salaries are booming while workers’ pay rates have stagnated. That is not likely to drive consumer demand.

Federal government laws now put prime responsibility on the borrowers to ensure they can service and repay loans, so do your homework.

It is debt that has created the economic challenge that now exists where many people do not have the income to service and repay their loans.

There is much logic in reducing debt where possible so that lenders are less likely to seize your assets. There is also much logic in saving, in case we do go into a depression. Best to spread savings widely so that if one lot of money is lost, the rest will still be safe.

When borrowing large amounts, do a Loan Impact Statement for yourself, or have someone like GBAC do one for you. It should set out your debt servicing and repayment program until the debt is cleared, with space for you to mark off payments made and check that the balance is reducing as expected.

It should also show the impact that loan, interest and charges payments will have on your disposable income in the years you hold the loan. Be cautious!

Check all loan terms very carefully. Many lenders do not give you all their terms but simply refer to some document somewhere. Ask for a complete set of loan terms and make sure you get a copy of the loan agreement signed by the lender. Keep it safe because you may need it if a dispute arises. If you don’t understand every term, ask for an explanation.

The smiling banker who lends you money will most likely be replaced by a ruthless debt-collector if you fail to meet loan terms, so be prepared. If you need a loan consultant to help you, call GBAC and we will be happy to help.

You borrow to build wealth

. The bank lends to gain wealth from you. Bankers are better at it than borrowers because they do it all day every day. Don’t expect the bank to look after you. Bank staff are paid to make money for the bank, not for you!

Don’t be done like a dinner! The Good Banking Advice Centre has excellent Aussie Debt Solutions https://gbac.com.au/learn_more.php

Bankers are fishing for borrowers’ business to make up for their huge penalties for misconduct.

Now might be the right time to a little loan fishing yourself. GBAC’s Good Banking Advice Centre, offers you the ability to sound out other banks than the one you are with – as insurance against foreclosure.

We have learned that other banks welcome new customers with open arms, whereas your old bank knows you warts and all and can be less enthusiastic.

Another good alternative might be one of the following:

A government Drought loan might be a good bet to replace an existing bank loan, if you can get it and fund repayments. Limit is $100,000 and it is interest free over 7 years.

Before applying, work out how you will fund the $14,500 annual repayments in bad times. Work out whether you would pay it monthly, quarterly, half-yearly or yearly or after some particular sales.

Even though it is interest-free, it is still repayable debt, so handle with care.

A government infrastructure loan over 20 years @ 2.5% is also a good bet for much the same reasons. Again it is a repayable debt so don’t borrow unless you are sure you can repay it. Every $100,000 you borrow will need $7,500 a year for 20 years including $2,500 interest .

Specialist borrowing consultant Greg Bloomfield has fired a broadside across the bows of aggressive bankers just waiting to foreclose on businesses and farms whose loan repayments have been prevented by the devastating consequences of Corona virus restrictions.

Mr. Bloomfield, a former FCA, CPA, business owner and farmer says his loan consultancy has developed 20 defense strategies for borrowers harassed by banks. His firm, GBAC, has helped borrowers Australia-wide who are in strife with banks, since deregulation in the 1980’s.

He said today “ There is no reason in the world why borrowers should suffer loss of their life’s savings, homes, businesses and farms while bankers earn billions and their executives earn million on the back of policies that are at best doubtful and at worst criminal.

Government restrictions have prevented the devastation of our community by this corona virus which has killed so many people in other countries. Banks need to share the financial burden just like the rest of us.”

He claimed that with patience on all sides and good financial discipline it would be possible to tailor good solutions that would benefit both the bankers and the borrowers, saying “ GBAC will not allow borrowers to be bullied and brow-beaten by brutal bankers.”

Mr. Bloomfield is also well known in political circles as the founder of FairGO, the Votergram service and Voters Network , all of which put him in an ideal position to protect borrowers.

Realising that the constant reduction in interest rates by the Reserve Bank has not stimulated the Australian economy to counter the recessions, the Federal Government has sensibly  opted for fiscal policy to directly stimulate the economy by spending money.

The Business Council of Australia has been active in telling the government that money should be direct to them so that they can create jobs.

Now there is a need for voters to tell the government what jobs they want created perhaps rural and city doctors, nurses and hospital jobs; teachers and teacher training; competent aged care staff with high skills in caring and communicating; police; domestic, family & sexual violence court staff and judges, school counsellors. Perhaps affordable housing for sale on long term multi-generational loan plans so that the residents end up with an asset instead of just enriching developers.

The biggest offenders are the major Australian banks themselves, as the Royal Commission discovered. Customers have been cheated on a grand scale and much of the cheating relates to loans.

How do small business or farm owners get millions of dollars written off their overdue bank debts; save their assets from foreclosure?

They hire GBAC, the firm that has specialized in bank debt write-offs since bank deregulation in 1987.

Check out GBAC now. Be Prepared for the end of debt deferral when it comes. Don’t wait ‘til it’s too late!

Just moving away from the normal topic of debt – a word on super.

Wealth managers are telling lies to young people or at best distorting the truth in their quest to obtain the lucrative superannuation money on which they build their stratospheric profits and salaries. Fund managers are the real beneficiaries of compulsory superannuation.

They cheat by talking of how much a young person would lose in the long term by withdrawing $10,000 from their superannuation now (around $15,000 say some), but do

not take into account discounted cash flow. The use of their $10,000 now may be far more valuable than it would be in 50 years time. For instance a house bought 50 years ago in Sydney for $16,000 is actually now worth about $1.6 million. That is 100 times as much.

$10,000 spent now may help provide enjoyment for the next 20 years.  Having it at 30 might be a lot better than havi

ng it at 50. But saving has great benefit too, because it can be very handy when needed, like now during the pandemic.

There is a distinct possibility that the value of superannuation invested on stock markets around the globe may deteriorate because the current prices may be inflated by the mountain of superannuation money globally looking for something to invest in.

In my view the very best superannuation any person can have is their own home. They get the capital gain of 

owning the house plus the benefit of living in it too. It is sort of like having your cake and eating it too.

On compulsory superannuation’s impact on jobs, big business leaders are interested in two things, maximum profits and the highest salaries they can personally earn. Increased superannuation, payroll tax and lower company tax rates (meaning lower tax deductions for wages), all make computers, robots and cheap foreign labour a profitable alternative to providing Australians with jobs.

Australians concerned to see their finances remain at least as good as they were before the pandemic, should join Voters Network Australia or FairGO to persuade their politicians to make that happen. It is not so difficult. It just takes time and effort. FairGO is an expert at the diplomacy, psychology and strategy that give incredible power and influence to everyday Australians & their organisations.

If they want a second opinion on financial matters, help with borrowing, loan management or securing a debt write off of unreasonable debt, they can contact a Borrowing Advocate or Assistant at GBAC.

RBA board member Ian Harper has raised the issue of bank regulation and immoral banking practices.

Bank directors and executives are robbing and tricking customers to make multi-billion dollar

profits and pay packets over 20 times what MP earn to run the country.

They “own” APRA & AFCA. ASIC & ACCC are no match for them. Financial counsellors can’t detect dishonesty and work cl

osely with banks.

Most banks are common moneylenders like Shylock of the Merchant of Venice, with no moral scruples whatsoever.

One solution is  GBAC Advisory Pty Ltd established to help customers see the traps before they fall into them and get out if they are already trapped.