If you’re looking to take out payday finance to serve an existing debt or addiction, then this is a terrible idea in our opinion.
Credit24 is yet another payday lending provider with negative reviews online on Australian-based websites. We researched and discovered why this is.
We want to warn people AGAINST using payday lending services because they’re all the same. You get a bad deal and they ride your backside for years. It’s legal and legit…but unethical.
Most people are simply unaware and while it’s not a scam, it’s certainly unfair.
It’s always the same story we hear. You’re now having a tough time financially.
Like months ago things we sort of okay, but then you started missing repayments.
Then suddenly things got out of hand. Now you need a payday loan immediately.
So you turn to the internet to do some research. “Who can give me some quick cash?”
Because you don’t want to ask your friends or family. That would be embarrassing!
Credit24 comes up on your radar, but you want to read some reviews first.
(That’s smart by the way. Great that you’re actually looking this stuff up. Congrats!)
It’s only now that you discover that things aren’t what they seem. It’s not so rosy, is it? Like putting makeup on a muddy pig.
(Okay…pigs are actually beautiful to some people, so bad analogy there… ?)
But you get it, right? Or maybe you don’t.
Let’s look at where the problems are.
Payday lending is dangerous
The biggest problems start with advertising. They will rope you in with “Quick cash today” or the “instant approval” type of jargon.
The good news at least is that ASIC is monitoring their claims closely.
Then it’s the ease of finance. Like just about anyone gets approved for a loan, provided that your credit report is good. Yes – Credit24 will check your credit history in Australia.
Now we have the biggest issues:
- You’re going to be dealt with a killer high loan interest rate of 30%. This is far beyond what others charge which is more in the 10% range.
- They expect that you’re going to struggle with repayments, so you’re up for additional late fees and charges if you miss them. This can double your loan.
- Debt collectors will start calling if you fall just a week behind, adding more stress to your already chaotic life. Demanding letters and phone calls to follow.
- The mark on your credit report about payday lending can affect your chances in getting a car loan for work in the future. Think about that too.
So you’re basically giving them a massive upside while you get the raw end of the deal. They’ll be more than happy to lend out the money too by the way since payday loans are a massive profit-maker for them.
For the wrong reasons
There are times when payday lending is necessary. Like you need urgent medical attention or the dog got sick. That sort of thing. Or you just happen to get a really good job where you need a cheap car to get around, in which case you might qualify for a cheaper car loan (15% interest maybe).
The thing is, most people get payday loans for all the wrong reasons.
While gambling and alcohol addiction is one reason, the most popular one is to actually serve other debts. You might have a car loan or credit card already and under the weight of those repayments, you decide to get a payday loan to path these off.
That is essentially fighting fire with fire. A terrible idea in our opinion!
You can’t pay off a debt with another debt which has higher interest.
This is a sure-fire way to slide backwards, into a deep spiral of debt overload.
We’re completely against this strategy here at The Debt Free Community.
Some people might declare bankruptcy by the end, but this has severe consequences for your future. It’s certainly not worth it at all.
Credit24 are serving themselves
It’s clear that this payday lender is hopeful that you’ll go through with the application. Perhaps that’s what you’re looking to do right now.
They will get a big fat commission if you decide to get on board with their payday lending service. In fact, any of these payday loan providers run highly profitable businesses while people like you get a bad deal.
This sucks as you’re having a tough time. They prey on the vulnerable who just needs a fighting chance of winning. You’ve been really struggling, haven’t you?
It’s simply dangerous to take out a loan with any payday company as they’re all self-serving. Credit24 would love you to believe the positive reviews on their own website, but these might be isolated examples.
It’s all the same out there
These payday lenders are basically loan sharks in disguise.
Basically their goal is:
- Find someone who’s doing it tough right now.
- Promise things like “Bam! Here’s your cash today!!!”
- Make borrowers go into deeper debt (Short term gain)
- Get them paying a lot of repayments (Long term pain)
- If they ever do repay the debt, offer another (bigger) loan
It’s like this endless cycle. Most people looking at Credit24 for instance already have several debts that they’re struggling to deal with right now.
So they go and take out this payday loan thinking it will be temporary and things will get better soon. Unfortunately, it doesn’t get better at all.
Soon you find yourself in dire straits with no way out.
How we can help you today
We’re not going to recommend another payday lender, as they’re all the same.
Instead, we created The Debt Free Community to help people doing it tough.
We believe that you might qualify for a phone call to discuss reducing your debts.
This way your repayments each month can be more affordable for you to handle.
Our recommended mediation service can talk to debt collectors on your behalf.
Even if you’re struggling with credit card or car loan repayments, we can intervene.
Instead of you dealing with the mess, let us handle it for you. The team can start working today.
We want a better deal for you. None of these short-term payday lending applications.
Choosing us over Credit24
Credit24 does provide a friendly service, but their rates are just too high.
Payday lending also has its risks, especially for you as a borrower.
Chances are that you’re already having some troubles with repaying things.
Get in touch if you’re serious about actually doing something about this.
We recommend these guys because they actually want to help you.
You know that the payday loan you’re looking at is a terrible deal.
Because you’re a smart person who actually knows a thing or two.
Get in touch with your details or phone the National Debt Helpline.
Either way, Credit24 payday loans can lead you down a dangerous path.
And most people don’t make it out without some serious back peddling.
We’re sure by now that you’re not going to go through with that risky payday loan application.
It’s simply not worth it. You’re way smarter than to fall into that big trap waiting.
Get in touch as The Debt Free Community is here to help everyday Australians.