Loan sharks
I came across a client last month who had been rejected because he took out a $600 payday loan from Cash Converters. Major banks don’t look favourably on customers when they see this type of loan in the credit history. In writing this article, I searched the term “same day loans” and thousands of loan shark websites appeared. They prey on the vulnerable and they charge obscene interest rates and fees which make credit card rates of 20% look cheap in comparison. The banking royal commission should help destroy this disgusting industry, but I don’t have much faith in completely eliminating these opportunists.
What do you do if you get stuck? First, all major companies have a hardship phone number to call to assist. Second, you can also get help from Centrelink, including an advance of benefits. Third, and most importantly, once you get yourself back on track, it’s time to cut up the credit cards that most probably got you into this mess in the first place, to make sure it never happens again.