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Short term cash loans, also referred to as payday loans, are a sort of personal finance typically lent on a duration of between 16 days and one year. They are one of the most costly options to borrow funds and should only be used for financial emergencies.
A quick payday loan might be beneficial when you need immediate funds to pay for unexpected expenses or bills. However, they are among the most costly credit types and should not be utilised in long-term financial solutions.
They should also not cover day-to-day expenses (unless critical) or make a significant lifestyle purchase.
“You should sidestep payday loans if it puts your budget under strain, as interest charges and late fees for such loans can build up fast and result in debt.”
High-Interest Rates And Fees. Default fees, interest rates and late payments on payday loans are high. Make sure your lending institution is not charging you more than the ASIC guidelines and review what would you be charged if you are running late on repayments or if you fail to pay back the loan altogether.
Unaffordable Repayments. Such loans are a pricey way to borrow money. It is imperative to check the size of each repayment and make sure you will be able to pay on time. You might make your financial situation worse if you end up paying late fees.
Impact On Credit Score. Whether approved or rejected, every loan inquiry shows up on credit reports. While some financial providers might not consider credit rating, applying for many loans in a short period can harm your score. Structuring a good credit score is crucial as it will assist you in getting better bargains on financial products in the future.
Be Mindful Who You Borrow From. It might be a risky move if you contemplate taking a loan from a not ASIC accredited company. When you come across a lender with a lucrative interest rate and other “too good to be true” benefits, then make sure you check that it has a credit licence on the ASIC Register.
If you cannot make repayments on time, you will be levied a fee. Any defaults on the payday loan will also be included as a negative listing on your credit report. Moreover, it can remain there for up to seven years. If you have a loan and think you cannot repay it, connect with the lender to discuss your options.
Also, you can connect with our experienced financial advisors for a no-obligation consultation to find a solution that suits you best.
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
