The Debt Free Community seeks to educate individuals on the dangers of payday lending from places like Loan Zone WA, based on the high-risk industry.
It sounds so easy with signs like “Instant Cash Today”. You walk in with nothing and walk out with some money. But was it really that easy? Often yes, but your future will be anything but easy.
If you use services like Loan Zone WA, the dangerously high interest rates and penalties for not repaying on time might cause nightmares for you.
You can expect to be sent down a path where you will struggle. Even though they do their best to assess your application, some borrowers just won’t make it.
Let’s look at a key scenario where this can play out.
Loan Zone WA
It’s clear that Loan Zone WA has good customer service which is why their reviews are so high, but some people are unhappy! Not everyone gets approved, fortunately.
We say fortunately because there are those that should not have payday loans at all or even personal loans. They have exhausted all their options already.
You can visit their storefront if you’re ready for a contract where the terms really are in their favour. Where you’ll be able to lose money and they will make money.
Essentially, they are profiting off your misfortune. It’s somewhat of a robbery.
The government in Western Australia still lets them get away with this. Luckily, ASIC is watching the industry very closely and applicants today have to go through more hoops to get approved, otherwise, they risk more issues.
What happened to Shaun
Let’s say for example Shaun. He’s our example for today.
Shaun’s a bit short on cash this month because he’s just not making enough. He’s got the rent due or the electricity is about to be cut off.
Quickly, Shaun turns to the internet: “I need cash fast! Let me do this online”
“Aha! I found someone who can deposit into my account like…right now ?”
Shaun thinks he’s found the holy grail. He doesn’t even need to go anywhere, unlike having to walk into Loan Zone at Fremantle.
Unfortunately, it’s not Shaun who has won here. It’s the payday lender who put out the bait “Instant Cash Today” and this individual has taken it. Well done guys.
What Shaun will experience is:
- Seriously high interest rates designed to make the lender a big profit
- Very high penalties if Shaun even misses one repayment on the loan
- A mark on his credit report which could affect his car loan options
- More stress that he simply doesn’t need. Just leave the man alone!
But on the day that he took out the loan, he merely skimmed over the Terms and Conditions. You know – the real contract that he just entered into.
If Shaun does pay the back, then it’s good news. He’s going to struggle though.
If he doesn’t pay back the loan, then he can expect debt collectors at the door.
Payday lending woes
This nightmare that Shaun experiences are actually a common story across Australia.
People actually believe that they will be just fine. In fact, they put on a show-and-tell with the payday lender so they can get approved for the finance.
Truth be told that many are already in hot water, otherwise, why would they be going for a payday loan? It’s crazy to think that people are going in this direction.
Often it’s to pay back an already overdue debt like a car loan or credit card. Others use it to pay their bond or to sort out repairs for the car. Often Centrelink can do a payment advance if you ask nicely.
Some people also use these loans to feed addictions. Please call a counseling service if you happen to be experiencing such troubles, whether financial or not.
Alternatives to Loan Zone WA
Now, most people don’t need instant cash today. They can wait a few days.
You could sell some stuff online like via Gumtree. Even a pawn shop is a good option if you want to accept the lower prices that they will inherently offer.
Another good option is to ask friends and family. While it’s a little embarrassing, you’re not going to be dealing with anything dramatic as you would with a debt collection agency hunting you down.
Did you know that you can apply for financial hardship? It’s what a lot of people do in order to get a month-long extension on their debt obligations. This, unfortunately, doesn’t work for overdue rental payments.
Lastly, just get yourself additional work. Recruiting agencies across Australia are looking for people like you right now. Something in the evenings or weekends would be ideal.
The Debt Free Community can help
We’re not here to offer you a payday loan. That’s not us!
Instead, we actually want to help you. Are you doing it tough?
If you are, then get in touch with us. We can stop debt collectors from calling.
We can also potentially get a reduction in the debts that you owe. It’s great!
You’re probably undre a lot of stress already. Bad relationship? Lost work? That’s the sort of stories that we love to listen to. I
If you’ve been declined finance already or fear that these payday lenders will check your credit history, then stop searching. It’s too late.
You’re probably in a situation that’s quite low. You’ve dug yourself a hole and we’d like to help you out of it today.
Next steps
While Loan Zone WA is a good business, we’re not impressed with their profit-making machine. With thousands of loans over the last 2 decades, they would’ve processed millions of dollars worth of loans.
It’s unfair to think that people are being taken advantage of in this way. You know – being in dire straits and then being offered a ‘hand up’ which is actually going to send them further backwards.
Get in touch with us today as we’re 100% against payday lending and our FREE discover call can help you with a better solution.
