There are a plethora of short-term lenders, also known as "payday lenders" available in Australia. While many of these lenders may seem similar at first glance, they all have noticeable differences. These points of distinction could mean the difference between an affordable loan and an unaffordable loan, so it's important to know what they are.
This guide will break down the important features of Wallet Wizard and MoneyMe to help people who may be considering a payday loan to make the most informed option possible.
If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the Financial Counsellors hotline on 1800 007 007. It is open from 9:30am to 4pm, Monday to Friday. When comparing short term loans, ensure you take into consideration any fees, charges and rates you may be charged. It's important to weigh up all your options before applying for any form of credit.
⚠️ Warning about Borrowing
Do you really need a loan today?*
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
- For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
- Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
- If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94
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.
|How much do they lend?
||$500 to $5,000
||$500 to $25,000
|What are the repayment terms?
||Differs with each loan amount as the product is a line of credit.
Small loans (under $2,000): 1 to 2 months
Medium loans ($2,001-$5,000): 3 months to 2 years
Personal loans ($5,001-$10,000): Up to 3 years
|How much will the loan cost?
Small loans (under $2,000): 11-20% of loan amount (establishment fee) + 4% of loan amount each month
Medium loans ($2,001-$5,000): $400 (application fee) + 8.99-30% p.a. interest
Personal loans ($5,001-$10,000): Establishment fee - 5 - 8% of the principal borrowed
||Not clearly stated. Discharged bankrupts and Centrelink borrowers are eligible.
||You must be 18+, an Australian resident and employed with a decent credit history.
|How quickly is the loan funded?
||Within two to three hours if the loan is approved before 2:30pm. Next business day for loans confirmed after this time.
||Applications can be approved within five minutes and MoneyMe aims to have the funds to the successful applicant in one hour.
|Is there a prepaid card?
|How much is charged for a late repayment?
Direct debit reversal fee: $10
Small loan payment dishonour fee: $25
Medium and personal loan payment dishonour fee: $15
Late fee: $5 charged daily
|Can borrowers pay the loan off early?
|How to apply
||Review and apply
||Review and apply
Wallet Wizard and MoneyMe offer different loan amounts, loan terms and costs. Prospective applicants should make sure that they choose the features that best meet their needs and budget.