Hopefully the holiday season has been good to you and you were able to spend it with friends and loved ones. Following the holidays, hopefully your finances have not been too much more difficult to manage. If, however they have been, then you may be looking for some extra money to tie you over until your next pay day. If you have found yourself in this situation, regardless of the underlying reason – one consideration you may make is to seek out a payday loan in Australia.
If you aren’t already familiar with these types of loans, as the name states – these loans are typically smaller amounts of money that are borrowed until the recipient receives their next month’s paycheque or payday. While this may be the route you wish to go to help solve your current money issues, there will be some additional considerations you will want to make to ensure this loan is in fact the best option for you.
This piece would not be complete if it did not look at both sides of the story, so to speak. So here are some advantages to payday loans as well as some of the potential pitfalls.
The Benefits of Payday Loans
As mentioned, by taking out a loan from a payday loan broker, you can access some short-term money to help get you through a brief period of time when money might be tight. If you have to make an emergent purchase that arises without any time to save, car repairs, medical bills, etc. – then this type of loan can be a good source of income. One of the main advantages that I would have to say are associated with these loans is that they money can be used towards anything you need. With that being said, these loans do range from around $100 to $1000, so this amount is of course another consideration to make as it relates the amount of money you need.
The process for procuring this money is generally fairly straightforward and does not require a credit check, only proof that you can pay back the money when it comes due. Upon moving forward with a payday loan, you are also able to have the funds transferred to your account very quickly. You are also likely to have a term of up to 30 days, sometimes closer to a two week period, depending on the agreement. Sound good, so far? Read on to learn more about the possible downsides of these loans so you are a bit more versed in this financial area.
The Pitfalls of Payday Loans
The major downside to a payday loan stems from what happens when you are unable to meet the payment deadline. With sometimes an already higher interest rate – while not a huge financial endeavour in the beginning, it does quickly add up. Often times, the interest rate will be increased and the additional fees that you’ll be required to pay are very costly. While other types of loans see the same interest rate typically carried over to the next payment deadline, it is not uncommon for these payday loans rates to double. If you need to extend the loan for another week or even more, these fees can end up setting your back further than where you started. Ultimately, if you are unprepared to pay off the loan within the shorter time frame, then you should proceed with caution before borrowing from these lending groups – otherwise you could fall into debt.
Overall though, if you need to access fast cash and know you will be able to pay it back in time and in full, then a payday loan could be exactly what you need. On the other hand, if you are unsure whether you can pay it back in the short term and think that you may need a loan that extends over a longer period of time, then looking to other types of loan options may be the better way to go. Either way, it is nice to know you have options in your area. Here are some payday loan companies that may be able to meet your pending financial needs across parts of Australia.
1) Payday 24/7
Right off the bat, from their site you will notice that Payday 24/7 offers loan sizes from $100 to $1000 and are based on repayment cycles of 16, 22 or 32 days. This group out of Perth is an online payday loan service that is available around the clock and requires very limited steps and hassles for obtaining your funds. There is no paperwork or credit checks required for approval and as mentioned you do have to proof you can make your payments on time. You can also contact them via phone, and can get in touch with someone ‘in person’ during their existing hours of operation. You can apply online for this loan, and if this is during the business hours, you can expect to obtain approval within approximately 15 minutes or less – otherwise you can receive the money by the next day.
Repayment dates are assessed based on your pay period and in order to determine how much you can expect to pay in fees, you can use the online calculator tool. For a loan size of $200, you will expect to pay anywhere from $248 to $256, (20% establishment fee, 4% interest), depending on which payment cycle you are approved for. For the larger loans, closer to $1,000, you will typically have a longer payment period of 32 days. Ultimately, if you secure a loan size of $1,000 you will also expect to pay out $1,288, with an interest rate of %8 and an establishment fee of 20%. The company also states that failure to repay the loan on time will mean that you will incur added expenses, in addition to having it affect your credit rating moving forward. As you can see being aware of all the total upfront costs is important before you take out the loan.
With their main office located in Sydney, My Australia Payday offers loans to a large demographic of Australian residents as well as operating on an international level. You can call them or simply apply online. Comparable to the first group, this payday lender offers loan balances of up to $1,000 over shorter time spans. Both the application and approval process can take place in about 15 to 30 minutes, with a direct-deposit being made into your account. Also highlighted on their site is the fact that these loans are suitable for borrowers with less than perfect credit, as long as proof of income can be made. While this site does not list the interest rates and the payment scale – you can contact them directly by phone or online to make these specific inquires. Ultimately, not all information will be available on their site, and before moving forward with the online process it may be a good idea to contact them directly and have them answer any additional questions.
By performing a quick online search, you are bound to find tons of payday loan options in your part of the world. I cannot stress enough, how important it is to make sure you find a payday lender with a solid reputation and record of offering payday loans, as well as being an accredited loan provider. Various payday loan groups like these can offer different benefits and some may be a better fit for you. So, if you do your research and choose wisely which course of action is the most appropriate for you, you can get your finances the little boost it needs moving into 2015.