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Payday Loans


Ads for 'payday' or other 'short term' loans make debt problems look like fun.

They may appear convenient and accessible BUT the total costs are very high. You pay a lot on top of what you borrow. Other banking solutions are much easier to afford and cost less.

Although the loan amounts are relatively small the repayments per week or per fortnight can be quite a large amount so that the loan gets paid back quickly (usually between three weeks or a few months). This is often the killer on a low income.

They can trap you into a cycle of debt – borrowing again just to repay the last loan - because you find you have been left short due to the high payments.

Better Option: Have you investigated affordable finance?


Josh considered a pay day loan for a $300 power bill due two weeks before his next pay. A short term loan would have cost him an extra $90 in fees. Instead he called the power company and they extended his payment by two weeks. Total Saving - $90.

Stuck in a Payday Loan cycle?

People often need to take a new loan to help pay out an old one. The debt can soon ‘snowball’

Contact a Financial Counsellor to help get out of this debt cycle