Only borrow what you can afford to repay
Thousands of Australians regularly turn to payday loans for their emergency cash needs.
Payday loans are a flexible way to borrow money for the short term. But it is important that you only borrow what you can afford to repay.
Payday loan providers in Australia generally charge $10-$30 per $100 borrowed if paid back on your next payday.
Cash is usually automatically deducted from your bank account, or a post dated cheque is cashed when you next get paid. It may be possible to roll over the loan amount until your next payday, but if you do opt for this, payday loans can become very expensive.
For example if you borrowed $100 for one month you would only pay back $130, but if you rolled that on for another month you would have to pay a minimum of $180, maybe more when associated charges are taken into account, for borrowing for two months. The process repeats itself and the fees add up quite quickly the longer you leave a payday loan debt unpaid.
It is vitally then that you only borrow what you think you can afford to repay. Calculate before applying how much money you need, how much it will cost you to repay and how you intend making the repayment.
If you think you need to borrow money for a longer period of time, seriously think about other options other than payday loans.
If you still want to go ahead with a payday loan, the application process is very easy. To qualify you must be permanently employed, you must be an Australian resident, and you must be over 18. The maximum you can borrow in one go is $1,000, but remember, there are fees to pay back and charges mount if you do not pay back on time.
Do work out a repayment budget, don't borrow more than you can afford. Use examples - if your take home pay is $1700 a month and you borrow $800 for a month, etc...