Our WARNING About 1-hour Payday Loans (Australia’s Greatest Risk)

1-hour payday loans Australia

1-hour payday loans are now apart of Australian culture and the future for many is bleak. With rising debt, people are stuck on this endless merry-go-round.

The thing is, we’re all doing it tough. The economy isn’t so strong. Unemployment is rising and people generally are becoming more and lazier as each day passes.

Let’s compare that with other countries with zero welfare. China, for instance, has a strong working mentality, the characteristic “Get in there and do it!” attitude that this country once had. Now we’ve turned into a bunch of islander people.

So in this blog post, we’re going to share our things on why you shouldn’t take out that payday loan, even if you’re in dire straits. Most importantly – what you could do instead.

1-hour Payday Loans

When we’re talking about 1-hour payday loans, we’re not talking about the company themselves. By this, we mean that there is a well known short-term finance company who shares that name.

1-hour Payday Loans

What we refer to are quick payday loans. You know – the type where you can get almost instant funding.

Some of these exist entirely online while others require you to visit a shopfront to do it over the counter. Both pose concerns of legitimacy.

Either way, you’ll need to provide the following information:

  1. Your 100 points of ID
  2. Proof of income (including Centrelink)
  3. A copy of your credit history (They all ask this)
  4. Copies of your bank account statements

In almost all instances, the applications from individuals are very average at best. Commonly the loan assessors see the applications as a person who’s struggling to keep their head above water.

Now, here is where the problems lay:

  1. The individual is unlikely to repay the loan in the timeframe required
  2. Interest rates given are far beyond what is reasonable, and often 30%
  3. Additional fees, charges and penalty interest applies, often doubling the original debt
  4. Debts are routinely sold to debt collectors with markup when unretrievable
  5. Lastly, it often takes the individual into a whirlwind of additional debt.

In our opinion, there is very little upside for the borrower, but the massive upside exists for the lender. In most instances, these lending shops aren’t those that actually lend the money, but instead just win with a huge commission for signing the unfortunate individual.

Reading online reviews of 1-hour payday lending or fast finance shows that people are less than optimistic about their prospects.

What you can do

If you haven’t already taken out a Payday loan, then here are several things you can do:

  1. Please speak to the National Debt Helpline. It’s a free government service.
  2. Look at other ways to make additional money. Part-time job? Drive for Uber?
  3. Can you ask friends or family for a short term lend when things are tough?
  4. Consider selling things you’re no longer using on Gumtree or eBay.

Because we all know that going into additional debt is never the right idea. Nor is it a wise idea to declare bankruptcy. They can keep chasing you for years.

What we talk about often at The Debt Free Community is avoiding debt altogether, or chipping away at your current debts. More importantly – avoid debt collectors at all costs! There are ways to get people (like ourselves) to talk to them for you.

Now, if you have taken out a payday loan and are struggling to pay it back, we wouldn’t recommend another loan. That’s fighting fire with fire.

Instead, we can suggest:

  1. Talk to the National Debt Helpline. Again – they are there to help!
  2. Sell anything that is unnecessary to you, including clothing and electronics
  3. Ask for a repayment holiday from your banks (They can do this actually)
  4. Pick up another job somewhere in part-time hours to bring in more cashflow

There are times that a debt reconsolidation loan could do wonders for you, which will merge your 1-hour payday loan and other debts (car loan, home loan) into a single payment. This way you only have a single monthly repayment to look after.


It’s clear that Australia is going backwards with the wave of payday lending.

The issue is that you’ve got a hungry market that needs money fast (based on consumerism mostly) paired with service providers who love the significantly higher financial returns.

We believe this to be a huge risk to the local economy. In fact, it’s everything we’re against.

The Debt Free Community is designed for those who seek to live a debt-free lifestyle. If that’s you – and you’re struggling – then we look forward to seeing you get in touch with us.

What Happens If You Owe Centrelink Money

So you’ve been overpaid by Centrelink and now you want to know what happens if you owe them money. It can be really bad news I’m afraid if you do nothing.

Many Australians are waking up in what’s called Robodebt. Sometimes themselves have made a mistake or sometimes it’s the Government themselves who have overpaid.

In this guide we’ll help you organize your affairs if you owe them and the debt needs to be repaid.

Owing Centrelink money

You’re probably curious about what the end result or repercussions are if you’re in this situation of owing the Australian government money.

Let’s answer that straight up:

If you owe Centrelink money, then they will make you pay it back! It’s a real debt with monthly interest where you’ll have to find a means in which to repay it. They won’t magically forget that you owe Centrelink money and they might take a portion out of your weekly payments.

What Happens If You Owe Centrelink Money in Australia

It’s a scary thought especially if you have rent and bills to pay. You might have to get a part-time job to get you by in the interim. It’s also a bit embarrassing too.

This is what people have had to do. Even if Centrelink makes the mistake, you’re liable! It’s frustrating but that’s why we recommend that you save a portion of your weekly payments for a rainy day like this.

Dealing with Centrelink debt collectors

If you fail to make your repayments with Centrelink debt, then the money you owe them might be passed on to a 3rd party. This is typically their in-house debt collectors who call up people each and every day demanding payments. They can be aggressive, rude and some people have reported harassment, but we’re not so sure.

Will I go to jail for Centrelink debt?

Probably not. Centrelink rarely sends people to jail. Those who do go to jail for Centrelink debt are those who committed serious fraud knowing that what they were doing was illegal. If you merely made a simple mistake or can prove that Centrelink made the mistake via Robo-debt, then it’s highly unlikely anything will happen, especially if you commit to a payment plan.

Centrelink debt letter

Did you get a letter just recently in the mailbox that says “Warning! You have been overpaid and now need to pay us back with additional penalties, fees and interest. Please contact us immediately!”? These letters are being sent out all across Australia right now and they’re often genuine.

Will I be prosecuted?

If you ignore the demanding letters and phone calls, then yes, it’s likely that you will be prosecuted. They can take you to Court with all of their documentation with the Judge often siding with Centrelink. After all, it is a debt which needs to be repaid. They are always open to payment plans where you can still meet your basic living expenses.

Can I travel overseas?

Centrelink now has the support of the Australian government to block people who owe Centrelink money from travelling overseas. Basically, you’ll arrive at the airport and will be denied boarding because you owe money to Centrelink, and this block can last for years meaning you can’t travel overseas until they’re satisfied.

They do this because they believe, if you can afford a holiday, then you can afford to pay them back. It’s really that simple. It makes sense, right? Why should you get a free holiday from the Australian taxpayer?

Centrelink report on my credit history

Often Centrelink debt or owing them money won’t really appear on your credit history, but sometimes it can. This can reduce the likelihood of you getting approved for a car loan to get to and from your new job. For this reason, you need to avoid recovery action in the first instance.

Next steps

Owing Centrelink money is never a good feeling. You never know when they’re going to cut off your payments nowadays.

What you need to do is be proactive. Organize a payment plan with them. Set aside some dollars each week. Start making the payments, even if they are small, so they will go quiet on you and chase the next person.

Sometimes they might agree to a Work For The Dole scheme. This means your debt is repaid over time through community work projects.

Always remember that there is light at the end of the tunnel.

If you need to speak with a professional, please contact the National Debt Helpline on 1300 007 007 or Lifeline on 13 11 14 today. Both can help you if you’re in serious financial challenges.

Loan Rejection: Did it happen to you? Great!

Loan Rejection Australia

Recently suffered a loan rejection? If that’s the case – great! Australians have trusted The Debt Free Community and the advice here.

We’ve helped plenty of people to reduce their debt, and eventually live the debt free lifestyle. Yes – this is a real thing. Plenty of people (both high and low salary earners) already do this across Australia.

Loan Rejection Australia

If you’ve been rejected, then we applaud you. This could be your first step towards a greater lifestyle without the burdens of debt.

Loan Rejection: Why it’s a great thing

You’re probably curious about the title. “Why is it great that my loan rejection happened?” Well, this could be the first opportunity to see that there’s a real issue.

Australians have a record amount of debt. From personal loans, credit cards, home loans and car loans. It’s a trap – a constant hamster wheel of not getting ahead. Start working yourself out of this hole.

Essentially: Where you’ll find problems, you’ll also find opportunities. This is an opportunity for you to awaken to what’s really happening.

With that said, let’s evaluate the core 4 reasons that loan applications are rejected across Australia.

Lack of savings

Creditors and banks love to see real bank savings. That is – you’ve demonstrated a track record of putting money aside. It gives them more confidence.

If you’re struggling to save money as you’re already paying off a debt, such as a credit card or loan, then consider using our 100% FREE phone chat service – we’re ready and waiting! Let’s see if we can negotiate lower interest rates for you.

Inability to repay

Lenders like to know that you can service a loan to fulfill the repayments. There’s actually 3 core factors that they look at:

  • Your income and if there’s enough to both service the loan, plus still pay your everyday expenses
  • The job you have and how secure it is. Permanent full time
  • Extensive existing debt and commitments. Lenders look at risk, and they look at what debts you have already when assessing eligibility

We might have a solution that can help you if a lender thinks you have an ability to repay. Get in touch to see if we can help you today.

Bad credit history

Every single time you apply for finance, the first thing lenders consider is your credit history. Have you kept up with repayments? Are there any red flags? This is what they’re keen to discover.

Excessive activity such as shopping around for finance can negatively impact you. Also, moving house every year is a bad idea too.

Minimal assets

Lenders love to minimize risks. They want the real upside in their favor. So, they look for assets.

Do you own a house? Do you own a car? When applying for a loan, are you willing to pay a small deposit? They analyze your risk profile as part of their lending criteria.

Here’s our solution

We can help you, especially if you’re struggling with any kind of debt. We can understand your needs. We’re keen to be as friendly as possible.

Thousands of Australians have used us in the last 10 years. We’re community-driven and happy to provide the best possible service. Let us help you out of your situation, using our very effective solution.

Payday Loan Machines: Absolutely NO! Do not use these!

Payday Loan Machine Australia

Here at The Debt Free Community, we’re outraged that Australia has approved Payday Loan Machines in shopping centers. In low income areas, such machines have been rolled out to look very similar to ATM devices.

Payday loans by themselves are highly controversial. Payday Loan Machines take this to an entirely new level. This is because there’s no human element.

How they work in Australia

Payday Loan Machines were rolled out so that borrowers didn’t need to deal with a cashier. They could simply walk up to an ATM-like machine in a shopping center, press a few buttons, and receive funds in 24 hours.

Today these are often found in low income areas across Sydney. Look – we’re certainly not a fan. It’s only making Australians debt obligations even greater.

Payday Loan Machines are a problem

Firstly – Payday Loans in general have high interest rates and low repayment terms. It’s pretty well sided for the lender, not the borrower.

Payday Loan Machines
STOP! Debt collectors will still get you with Payday Loan Machines

The human element is missing with these machines. See – no one can really intervene. Quite simply – Payday Loan Machines exploit the most vulnerable people in Australia. Not cool at all, and very shark-like behaviour by these lenders.

Payday Loan Machine approval: WTF?!

We’re sitting here wondering just how this is approved in the first place. We just don’t know. Removing these machines is our top recommendation. This is fighting fire with fire.

Lenders propose that this ‘service’ is actually in demand from people. That is – those people that struggle to get finance in the traditional sense or want some discretion.

With Payday Loans, discretion is represented in dealing with a sole cashier.

No machines necessary. No computers or digital approval needed. The government needs to intervene here.

Luckily, the government has intervened. We hope that this is due to our response here. A crack down seems to be coming.

Loans, for example, cannot be more than 10% of a borrower’s net income.

There are also restrictions on how Payday Loans can market their services. Even Google has responded by stating that they’ve disallowed lenders to use paid marketing when using their search engine. Thank you Google!

Alternatives going forward

In our opinion, Payday loans are the WORST option you could choose.

We understand, at times, that they may be necessary. However, please use them as a last resort. And only if you’re absolutely sure that you can pay them off in time.

Avoid the quick fixes, and avoid the Payday Loan Machines. They’re not cool. There is an alternative. We’re it! πŸ™‚

We’re here to help you. There are much greater options with us.

See as a friend, and we’re happy to have a chat. No catches. Drop us a line, and we’re happy to reach out.