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People with two or more payday loans may find the repayments difficult to manage. One option to overcoming this obstacle is to potentially consolidate the debt into one more manageable loan. There are a number of ways in which this can be done, and a number of alternatives, outlined below.
If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help
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It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
When someone applies for a payday loan, the lender needs to take certain steps to determine whether or not they can afford the repayments to ensure that they are in line with ASIC's requirements. The lender needs to determine if the applicant:
For applicants that the above mentioned applies to, the lender has to take further steps to ensure that they will be able to repay the loan they are applying for. The lender does this by asking further questions about the applicants financial situation. Essentially, if someone is trying to consolidate payday loans with another payday loan, they may have difficulty qualifying.
If someone wants to consolidate payday loans, using another payday loan may not be their best option. Applicants will likely have difficulty being accepted for another payday loan, and the repayments, fees and costs if they are approved will still be high, meaning that they may not be any better off than in their current situation.
Payday loans are usually taken out because the borrower has few other options due to bad credit, is currently on Centrelink payments or is receiving a low income. If someone falls into the third category, using a high-cost payday loan to consolidate outstanding high-cost payday loans may not be the solution. However, there are other options available.
The following options can be considered for someone who wants to consolidate their payday loan debts:
If someone applies for loans and has their application rejected, or read through the eligibility criteria and couldn't find a loan that they would be eligible for, there are other options for minimising their debt. People struggling with their current debt can can:
There are also a number of alternative options to payday loans that customers may qualify for if they meet certain criteria, and this may help to get some people out of the debt spiral. Customers who are really struggling under a large quantity of debt can also find out the consequences of bankruptcy, and whether there are any alternatives for their situation.
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I have three payday loans and have lost my job the total amount of money owing is $800 can i put all these loan together and pay a argee low amount or a long term.
Hi Chaemaine,
Thank you for your inquiry.
AS per checking you are already in the correct page. You may need to further the information we provided on the above content for your guide and reference.
I hope this information has helped.
Cheers,
Harold
Hi, where can i find out the different options of loan available to a person with default, and bad credit history?
Hey Jess,
Thank you for reaching out to us.
You may want to check out these pages:
– Credit Options for Bad Credit Rating.
– 5000 Loans with Bad Credit
These lenders consider applications with bad credit.
Before applying, please ensure that you meet the eligibility criteria and requirements and to read the details, as well as the relevant Product Disclosure Statements/ Terms and Conditions of the option before making a decision and consider whether the product is right for you.
I hope this helps.
Cheers!
Maria