bankmecu warns consumers about the risks in using pay day loans
For many Australians, the concept of a pay day loan may seem appealing but the cost of this type of finance is staggering and could lock people into a debt spiral.
While a pay day loan may seem like a quick fix for some consumers who are struggling to pay bills or purchase food, the reality is that many people find themselves in a continuous debt spiral.
The effective interest rate on these loans in Victoria can reach a maximum of 48%p.a.
bankmecu’s General Manager Lending & Personal Banking, John Yardley suggests a longer term view is needed, “The reality is, consumers use pay day loans as a last resort because they are struggling to get by, but what they really need is financial assistance to help them improve their prospects”, said Yardley.
In a recent survey 70% of bankmecu customers responded that its important to them that society’s most vulnerable people are taken care of .
bankmecu is working with the community sector to understand the needs of people who require pay day lending in order that we can develop suitable products and services that meet their needs in a responsible way.
Know your rights and responsibilities with a pay day loan:
https://www.moneysmart.gov.au/borrowing-and-credit/other-types-of-credit/payday-loans
In the media: http://www.theage.com.au/victoria/payday-loans-no-solution-for-most-survey-finds-20120812-242v1.html