If you’re looking to take out additional debt, then we’re here to warn you against it.
The Debt Free Community is closely monitoring the practices of payday lenders across Australia, as they can be very dangerous for certain individuals.
Payday 24/7 Loans doesn’t have many reviews on Australian product comparison websites. I wonder why? Because maybe people aren’t keen for rip-off rates.
Or perhaps others have realized what a really bad deal they’re getting if they decide to take on short-term finance.
Read more as we examine the inherent risks involved for borrowers.
Payday 24/7 Review
You’ve probably been on their website and you’re selling the slogans “Easy cash now” or “Instant money in 1 hour” – which is mostly true, if you’re approved.
It’s also true that you’ll be hit with significantly high interest too on the loan. Some reports are that it’s 30% which is the legal maximum that they can charge.
Why does Payday 24/7 charge so much? Because they think you’re high-risk and will stop paying the loan. Some of their other borrowers have in the past and now they pass that cost on to you.
Not only that, but if you do miss a repayment (you know that you probably will) then penalties will apply for late payments + arrears interest. It’s quite frustrating.
No wonder people go backwards in life. Payday lending creates this negative spiral where people go deeper and deeper into debt with little way out.
If you’re struggling with debt today, then please call the National Debt Helpline. It’s a free service created by the Australian government who can be called on 1800 007 007.
At the same time, there are instances where Payday 24/7 can be a good company to get some quick cash from. Need a car urgently for that new job you finally got? Maybe a good idea to get that loan. Ditto if the dog gets sick and you need to pay that expensive vet bill.
But here’s the main issue: Most people taking out short-term financing like this aren’t using it for genuine emergencies. There is an underlying issue at hand.
Let’s examine exactly the problems.
Payday lending nightmares
Most people here at up to their eyeballs in debt or simply are overdue on some bills.
Things just haven’t worked out. The job doesn’t pay enough, rent just went up or you’re in a bad relationship. Sometimes it’s all 3 happening at once.
You look online and discover that you can get some instant cash today. There’s just one problem: These payday lenders are out there for themselves.
They look for vulnerable people who are struggling financially. They’ll sign you up to a high interest (read: 30%) loan which must be repaid without missing payments, or else you’ll be slugged with more fees.
And actually, they know you’re going to miss repayments. They’re just waiting for it.
Where Payday 24/7 isn’t worthwhile
If you’re actually needing cash in an emergency, then this could be a good idea.
At the same time, consider selling used goods on Gumtree to quickly raise cash.
Often people aren’t using these payday loans for genuine emergencies these days.
Instead, it’s to fuel an existing addiction. Please contact Lifeline if you need support, as they are FREE and can help you during these tough times.
On the other hand, we commonly see people take out payday loans to serve existing debts.
That is a recipe for disaster since it’s like fighting fire with fire. A terrible idea!
You can’t take a payday loan to repay your overdue credit card or car loan.
These credit companies actually have to, by law, provide you with a means of payment extensions or financial hardship arrangements. Most happily will do it.
Alternative options
We’ve mentioned that you can sell off your old stuff on Gumtree. Others use eBay too as the money can come instantly, even before the person picks it up.
Another idea is to jump on Airtasker or Uber to generate some additional income.
If you’re able to, pick up a 2nd job on the weekends or evenings. This will ease the financial burden even more. You can even ask your boss for a raise.
We know that it can be embarrassing to ask friends and family for loans, but some people prefer this than to pay extremely high loan interest with payday lenders like Payday 24/7. It also saves debt collection agencies from knocking.
Likewise, we can talk to debt collectors if they’re chasing you right now.
In summary
In most instances, you shouldn’t take out that payday loan which you’re thinking of.
It’s expensive in the long run, but highly profitable for them. Basically, they get all the upsides.
We’re glad that ASIC is closely monitoring the cowboys in the industry (which actually makes up most of the industry, funnily enough). It’s time to clean up their act.
Payday 24/7 looks good on the surface, but hopefully, in this review, you’ve realized that you might be getting a terrible deal. You’ll be struggling even more.
If you’re being hassled by debt collectors, then it’s probably time to do something about it.
Please get in touch and our recommended mediation team can intervene and talk to them for you.
