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.

Get your finances back on track Create a free account on Map My Plan today

A roadmap before investment journey

There are now more automated investment providers on the market than ever, targeting the 80% of Australians who are not seeking advices from financial planners. Whilst a good tool to have for first time investors, most of these ‘robo-advisors’ tend t

read more >

Gen Y housing affordability concerns can be ignored for only so long

Late last week the Turnbull Government-dominated Parliamentary Economics Committee released its report on housing affordability. Rather than reforming negative gearing or other demand side drivers, the Report suggests the housing affordability proble

read more >

2016 Financial Fitness Report

Personal finance issues are the leading cause of stress in Australia, and financial wellbeing is recognised as an integral part of overall wellbeing. Yet, to date, very little research has been done in Australia to measure the state of our financial

read more >

What’s the new story with super?

Its been said there are two certainties in life: death and taxes. The government's federal budget introduces a third: changes to super

read more >

Time for a rich list reality check

The web is full of blogs and articles telling you how to get rich through the stock market. Investor strategies, new apps to invest your spare change, online investment platforms...

read more >