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.
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! 🙂
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.