It’s quite risky for most borrowers to take on a payday loan, even by reputable companies like Fair Go Finance because of the interest rates and terms.
All across Australia right now, people are going deeper and deeper into debt. It’s a cycle that continues to plague us each and every single day.
Our audit and review of Fair Go Finance does reveal that while they are genuine, the dodgy nature of payday finance might lead to a dangerous situation.
Let us tell you why.
Fair Go Finance Review
Something that we see time and time again is the attractive marketing that these companies use. “You can get cash in 5 minutes with us. Apply now!”
Well, perhaps not to that extreme, but you get the point. Fair Go Finance does legitimate advertising campaigns which are evident of their high reviews and expectations for clients.
This doesn’t excuse the big problem: The interest rates. Expect to be hit with high interest rates around 30% if you decide to run with them.
That’s a highly profitable business model. Imagine getting 30% interest from a bank on your savings! Never going to happen.
Not only that, but they expect that some of their borrowers will default on their repayments. So what they do is put penalties in place to make additional profit.
This is sounding like a lucrative business model. And it’s true that there are payday loan shops all around Australia doing exactly that.
They target people in vulnerable times who are doing it tough. Now, the good news is that they need to assess if it’s going to cause financial hardship for the individual and can deny a loan application, as they have numerous times.
For that reason, we do rate them higher than most other short-term finance providers across Australia. It doesn’t excuse the fact that this is a profitable enterprise for them.
Making sense of payday lending
It doesn’t make much sense for most people to take out a payday loan when you consider the bad deal that you’re entering.
But we assure you that it makes perfect cents for the lenders. Dollars even, thousands of them! A very profitable business that’s making millions.
The interesting part is that they keep re-lending the same money over and over again. So the extra money you pay back will be re-lent where they can make 30% more interest.
And around it goes. They have an upward spiral while you have a downward spiral.
This is because you might be taking that payday loan to pay for a credit card debt or car loan, which is perhaps the worse thing you can do. It’s basically financial destruction.
Where Fair Go Finance could work
Let’s say you had a genuine cash emergency. You could ask your friends or family but that feels a bit embarrassing, doesn’t it?
Fair Go Finance can help you with a short term cash loan with the funds typically sent the same day.
Some good examples include:
- You finally got that job you wanted but you need a car to get there.
- Your teeth hurt and you don’t have insurance, so you need to get it fixed today.
- Your pet rabbit has a sore leg and you need to take it to the vet.
Okay maybe #3 wasn’t so realistic, but you get the point.
Fair Go Finance debt collection
Have you just been contacted the debt recovery agency representing Fair Go Finance? They have probably sent you a letter or text message that says “Please contact us immediately” – Take this as an official warning that you have obligations.
Now you will be hit with penalties because you didn’t pay this on time. That’s on top of your already sky-high loan interest (30%). It’s totally unfair!
The Debt Free Community answer
If you’re being hassled by any of the rude debt collection agencies in Australia, then we can help. Simply get in touch with your details, because we’d love to show you a new way forward.
We can simply:
- Talk to the nasty debt collectors for you.
- Work out something that is a good plan.
- Help you in sleeping more with less stress.
- Stop your phone from ringing all the time.
It’s really that easy!
We believe that Fair Go Finance is one of the good guys in the industry. However, the borrowers themselves are often setting themselves up for more misery.
If you’re in financial hardship already, then a payday loan is perhaps the worst thing you can do. Talk to your existing creditors for a payment plan or speak with Centrelink. You can also talk to the National Debt Helpline.
At the same time, consider speaking to us as well. Our team can assist you during these troubling times by talking to the debt collectors.
We’re looking forward to helping you get on with your life.