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There’s a better way than Payday loans

Do you have an expensive, short term loan that is hard to repay?

You can do something about it

For Help:
call the Credit and Debt Hotline on1800 007 007

Payday loans

Are usually used to pay for basic living expenses when times are tough. The problem with these loans is they are very expensive and often hard to repay.

One payday loan can quickly lead to another to help keep up with the mounting expenses.

Payday loans can be unfair

It is possible to do something about a payday loan if a lender has acted unfairly, for example by:

  • giving a loan to someone who can't afford it
  • requiring that person to repay it early
  • charging excessive fees

It is important to act early and get advice from a lawyer.

Jason's story

Jason is a single man living on Centrelink benefits. He lives week to week and has no savings.

Jason was having trouble paying his bills and received a final notice from the electricity company. He didn’t want his electricity to be disconnected so decided to obtain a short term loan from a payday lender.

Jason couldn't make the repayments on the loan. He got help from a lawyer at Legal Aid NSW. It turned out that the loan was unfair and after a few letters from the lawyer the lender agreed to waive all the interest and fees on the loan. Jason also learnt that, if he gets into trouble again, he can come to an arrangement with the electricity company instead of getting a loan.

If you or someone you know is in a situation like Jason, get advice and act early.

Need legal help?

If someone has a payday loan they should get advice from a lawyer as soon as possible. Call the Financial Rights Legal Centre on 1800 007 007 or LawAccess on 1300 888 529.

In financial trouble?

If you know someone in financial trouble, it is always a good idea for them to talk to a financial counsellor before getting an expensive loan.

Call the Credit and Debt Hotline on 1800 007 007 to find a local financial counsellor. Other options might include:

  • No Interest Loans (NILS) for essential household items
  • Energy vouchers
  • Payment arrangements on bills
  • Hardship arrangements for credit cards and other debts

For print copies of this brochure, order online via the 'order a publication' page or email publications@legalaid.nsw.gov.au.

May 2016