High cost loans don’t solve debt problems

High cost loans exploit vulnerable consumers. This site explains why payday lending should be reined in and what you can do to help.

Payday lending: the facts

High-cost short term loans, with effective interest rates upwards of 400 per cent, cause poverty.

Many low income earners take out payday loans to pay basic living costs but then find they can't afford essentials like food and rent. So they take another payday loan which sends them into a spiral of debt. Read more

9 Payday Myths Busted

Industry opposition

Despite what Cash Converters and the rest of the payday lending industry would have you believe, the new laws aren't designed to close their industry - they're designed to protect vulnerable borrowers. And, let's not forget, the proposed regulations are actually less restrictive than the laws currently in place in NSW, Qld and the ACT! Read more ..

Take Action

Community organisations - endorse the open letter to Minister Shorten.

Everyone - sign up to get campaign updates.

What should be done?

Borrowers in NSW, QLD and the ACT currently benefit for a comprehensive interest rate cap of 48 per cent. That is to say, lenders can charge a maximum of 48 per cent interest, inclusive of all fees and charges. But, at present, borrowers in other states are faced with effective interest rates upwards of 400 per cent.

Consumer and welfare groups are supporting the Government’s proposed regulations which will give a similar level of protections to all Australian, regardless of their postcode. Read more..

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Help with debt problems

Many people think they need to use payday loans when they can't pay their debts, but better options are available.

Free financial counsellors can help. Call 1800 007 007 or find one here.

Alternatives to short term loans include No Interest Loans, Centrelink advances, Centrepay and applications for hardship relief to an existing creditor. Read more ..

Financial counsellors march for payday regulation

Financial counsellors march for payday regulation

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