Pocket Cash: Should You Avoid This Expensive Mistake?

We’ve found another payday lender called Pocket Cash whose focus is to help people in unfortunate situations, like right now in these uncertain times.

Are you doing it tough right now? Then you should definitely re-consider whether short-term loans are the answer. You can actually withdrawal some early super or get an interest-free loan from Good Shepherd. The paperwork they give you shows you all the shortcomings.

We would recommend Pocket Cash merely as a loan comparison website. They actually show you the loans so you can pick and choose who has the best offer for your situation.

Generally, we wouldn’t recommend any of these payday lenders. Their interest rates are high and they certainly have the worst reputation of financial products nationally. Instead, what they’re offering is to simply compare lenders side by side without the obligation to move forward. That’s a tick of approval from us.

Pocket Cash Australia

You’ve been on their website and it looks good. They make some interesting claims that we can immediately see. Things like:

  • You can do it all online
  • They could get you approved quickly
  • If you have bad credit, then it’s OK

Actually, what they are doing is recommending you to one of their most reasonable lenders. A wise choice as Australians actually can make a fully informed decision.

Pocket Cash Australia

While some Aussie lenders take a fortune from you, Pocket Cash aims to help you for the best deal in town on your loans.

You can’t actually get loans through Pocket Cash as they are a marketing company. This is why there is no address details on their website, however they do point you in the right direction.

Now – consider if you should take out a payday loan. It’s sometimes for some people to make ends meet as the interest rates are often high, but they always look at your loan serviceability (essentially to see if you can repay back the debt plus pay the rest of the bills). At least with Pocket Cash, you’re able to fairly compare lenders in the market.

Should you avoid Payday Loans?

We’re focused on helping Australians get out of debt. You might be a long way from that right now, but that’s OK. One trap that gets many Australians into debt is personal loans and payday loans, so they’re not at the top of our recommendation list.

In fact, of all the financial products in Australia, these can be quite challenging. You’re looking at some downsides if you take one on.

There is:

  1. Quite high interest rates (Sometimes 2x the original debt)
  2. Massive penalties if they have to take you to Court for it
  3. You’ll have a dent on your credit history (That’s not good)

If you’re willing to, we would avoid these totally. It’s just not worth it.

But there are times when you really need that dough. In that case, you’re far better off from dealing directly with a comparison website, such as Pocket Cash, to help you out. One that lists lots of lenders where you’re able to pick and choose based on the best payday loan deals.

Good alternatives

While we’ve established that payday loans might be necessary for some people in tough times, and when there are no other options left, there are some healthy alternatives you can do instead.

One such option is asking friends and family. Do this on official terms with paperwork so that it’s much more responsible for each party.

You could also start saving some extra money each week. ASIC has some money saving tips on MoneySmart which we really applaud.

Picking up a 2nd job is often a great idea as well. Job recruiting agencies would love to hear from you if you have tangible skills where you’ll get paid weekly.

Lastly, we recommend making a focus towards slowly getting out of debt. Start chipping away today, brick by brick. There is plenty of inspiration around especially inside the Barefoot Investor Facebook group.

In summary

Use the alternatives we’ve highlighted here. We’re here to help in any way we can. You might want to reach out to us if you’re doing it hard right now.

We’ve also created some resources for you to get through these tough times.

It’s our hope that more Australians can be well informed of their options. Fortunately, it’s sites like Pocket Cash that provide some very reasonable options.