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Why We Created Chipkie – Australia’s Best Way To Manage Friend And Family Loans

Have you ever had to rely on a friend or family member to give you a loan to get by? Us too. First, it was small loans to buy the first game we wanted, then to buy a car, and of course, we could only have afforded our first home deposit with the generosity of Mum and Dad! Let’s face it: Some of our biggest purchases in life couldn’t have been made without the generous help of those closest to us. 

But there is stigma attached with lending too. Concerns it may hurt the relationship, wanting to avoid awkward money chats and never getting the money paid back are all concerns from people when lending money. And for some, it holds them back from helping out loved ones – putting a strain on the relationship. 

That’s where the idea for Chipkie came about. What if we could create a platform that would remove the friction of lending and make it easy to help out the ones we love? That way, we could all benefit from what is a rewarding, enriching experience for everyone involved. 

And with our current climate, lending money to loved ones is more critical than ever if we want to see our communities thrive. 

Let’s Face It, It’s Tough Out There

In Australia, like many parts of the world, the cost of living has notably increased, making everyday life more challenging for many. As of late 2023, data showed that the overall cost of living had risen significantly, with key contributors being housing, utilities, and basic necessities. This surge has been felt acutely in the housing market, where the dream of home ownership is becoming increasingly elusive for a large portion of the population. Recent statistics indicate that housing prices in major cities have skyrocketed, with some areas experiencing price increases of over 15% in a single year.

Adding to the challenge is the trend in interest rates. The Reserve Bank of Australia, which had maintained relatively low rates for an extended period, began a series of rate hikes in response to global economic pressures and inflation concerns. By the end of 2023, interest rates had significantly jumped, impacting mortgage repayments and lending practices. This shift has made borrowing more expensive, further complicating the home-buying process for Australians.

The Way We Are Getting Ahead Has To Change

However, it’s not all doom and gloom. Australians are known for their resilience and adaptability. Borrowing from friends and family has become a common practice as people navigate these tough economic times. The Bank Of Mum and Dad was announced in 2023 as now the 9th largest lender in the country, overtaking many banks and financial institutions. This mutual support is essential, as it provides immediate financial relief and strengthens community bonds.

As part of this growing trend, there has also been an increasing emphasis on financial literacy and planning. More individuals are seeking advice from financial advisors and exploring different savings and investment options. There’s a collective movement towards smarter budgeting and more prudent financial management.

By sharing experiences, knowledge, and resources, Australians are supporting each other in navigating these complex financial landscapes. 

That’s Why We Created Chipkie

We wanted to create a tool that would help all Australians help each other financially, giving people who can’t afford the high interest rates or heavy deposits needed to make important purchases a chance to get ahead.  

What would make it easier to help your friends and family if they need financial support? Formalised contracts, a better way to track and pay loans, and clearer communication removing the awkward chats. 

Digital Management of Friends and Family Loans - Chipkie
Digital Management of Friends and Family Loans – Chipkie

So we created a tool that addressed all your concerns about lending and made it easy to say ‘yes’ to helping each other out. We can’t always guarantee that your loan journey will end perfectly, but we can help by giving it the best chance for success. 

So go on, what are you waiting for? Chipkie is free and easy to use. So say ‘yes’ to helping out a friend, reap the rewards from doing something kind and positive for those you love, and help our communities thrive through these economically uncertain times. Together, there’s a stronger chance of weathering this economic storm and emerging more financially savvy and resilient.

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