Our WARNING About 1-hour Payday Loans (Australia’s Greatest Risk)

1-hour payday loans are now apart of Australian culture and the future for many is bleak. With rising debt, people are stuck on this endless merry-go-round.

The thing is, we’re all doing it tough. The economy isn’t so strong. Unemployment is rising and people generally are becoming more and lazier as each day passes.

Let’s compare that with other countries with zero welfare. China, for instance, has a strong working mentality, the characteristic “Get in there and do it!” attitude that this country once had. Now we’ve turned into a bunch of islander people.

So in this blog post, we’re going to share our things on why you shouldn’t take out that payday loan, even if you’re in dire straits. Most importantly – what you could do instead.

1-hour Payday Loans

When we’re talking about 1-hour payday loans, we’re not talking about the company themselves. By this, we mean that there is a well known short-term finance company who shares that name.

1-hour Payday Loans

What we refer to are quick payday loans. You know – the type where you can get almost instant funding.

Some of these exist entirely online while others require you to visit a shopfront to do it over the counter. Both pose concerns of legitimacy.

Either way, you’ll need to provide the following information:

  1. Your 100 points of ID
  2. Proof of income (including Centrelink)
  3. A copy of your credit history (They all ask this)
  4. Copies of your bank account statements

In almost all instances, the applications from individuals are very average at best. Commonly the loan assessors see the applications as a person who’s struggling to keep their head above water.

Now, here is where the problems lay:

  1. The individual is unlikely to repay the loan in the timeframe required
  2. Interest rates given are far beyond what is reasonable, and often 30%
  3. Additional fees, charges and penalty interest applies, often doubling the original debt
  4. Debts are routinely sold to debt collectors with markup when unretrievable
  5. Lastly, it often takes the individual into a whirlwind of additional debt.

In our opinion, there is very little upside for the borrower, but the massive upside exists for the lender. In most instances, these lending shops aren’t those that actually lend the money, but instead just win with a huge commission for signing the unfortunate individual.

Reading online reviews of 1-hour payday lending or fast finance shows that people are less than optimistic about their prospects.

What you can do

If you haven’t already taken out a Payday loan, then here are several things you can do:

  1. Please speak to the National Debt Helpline. It’s a free government service.
  2. Look at other ways to make additional money. Part-time job? Drive for Uber?
  3. Can you ask friends or family for a short term lend when things are tough?
  4. Consider selling things you’re no longer using on Gumtree or eBay.

Because we all know that going into additional debt is never the right idea. Nor is it a wise idea to declare bankruptcy. They can keep chasing you for years.

What we talk about often at The Debt Free Community is avoiding debt altogether, or chipping away at your current debts. More importantly – avoid debt collectors at all costs! There are ways to get people (like ourselves) to talk to them for you.

Now, if you have taken out a payday loan and are struggling to pay it back, we wouldn’t recommend another loan. That’s fighting fire with fire.

Instead, we can suggest:

  1. Talk to the National Debt Helpline. Again – they are there to help!
  2. Sell anything that is unnecessary to you, including clothing and electronics
  3. Ask for a repayment holiday from your banks (They can do this actually)
  4. Pick up another job somewhere in part-time hours to bring in more cashflow

There are times that a debt reconsolidation loan could do wonders for you, which will merge your 1-hour payday loan and other debts (car loan, home loan) into a single payment. This way you only have a single monthly repayment to look after.


It’s clear that Australia is going backwards with the wave of payday lending.

The issue is that you’ve got a hungry market that needs money fast (based on consumerism mostly) paired with service providers who love the significantly higher financial returns.

We believe this to be a huge risk to the local economy. In fact, it’s everything we’re against.

The Debt Free Community is designed for those who seek to live a debt-free lifestyle. If that’s you – and you’re struggling – then we look forward to seeing you get in touch with us.

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