The dangers of payday loans: exposed!
For a lot of people, an unexpected expense means getting out the credit card and steadily paying back the funds over the next few months. But there are 10 million Aussies who don’t have access to a credit card, so where do they turn when life throws them a curveball?
Unfortunately, a lot of people are turning to quick and easy cash loans, or ‘payday’ loans as they are commonly known. While they might seem to be a good idea, especially when all other avenues have been exhausted, they can actually end up making things much, much worse.
In March 2015, an exposé on the ABC’s 4 Corners showed the dangers of payday loans and shared some harrowing stories from real-life Aussies.
A single mother of three children was somehow able to take out 27 payday loans in 2014. In another case, a man suffering a brain injury was signed up to multiple loans even though he didn’t understand the documents he was signing.
While we wait for the government to tighten up the law around these loans, so they truly are ‘only in case of an emergency’, there are some ways you can safeguard yourself from getting into a cycle of bad debt.
Trial Map My Plan today to get useful tips on everything from getting out of debt to saving for your retirement – and all that sits in between.