Credit Laws in Australia impose an obligation on licenced credit providers to lend responsibly. What does this mean? The loan is “not unsuitable” for the borrower.
When thinking about borrowing money, a good rule of thumb to use is the term of the loan should match the purpose, or the life of the purchase. For example you wouldn’t buy a car with a 20 year loan, you probably shouldn’t buy a TV with a 7 year loan (think about how quickly they become out-dated) and an overdue quarterly power bill should not be paid off over 1 year.
Before borrowing money you should consider the following:
- Does the term match the purpose?
- Am I only borrowing what I need?
- Are there less expensive alternatives available to me?
- Can I afford the repayments with hardship?
Is a Cash Advance, or Payday Loan, the right loan for the right term?
- Cash Advances are designed to meet unexpected short-term cash needs.
- Cash Advances, if used wisely, can be far better than bounced cheques or late payments.
- When used responsibly a Payday Loan can be both convenient and prevent service provider late payment penalties.
- Cash Advances should not be used as a revolving credit line for long-term needs.
