Let’s look at yet another payday lending provider, this time we’re researching MiFinance based in Browns Plains and Goodna, QLD.
The problem with these quick cash loans is that most people are already struggling. When they take out this type of finance, they only struggle even further.
You can walk into MiFiannce or do a loan application online, but it’s dangerous if you’re already struggling to keep up with your debts and obligations.
We’re very much against payday lending here at The Debt Free Community. Why? Because they do so much harm across Australia to people already doing it tough.
Let’s talk about why that is.
MiFinance
If you’ve got bad credit, then there’s probably a good reason behind that. You’ve already been struggling under the weight of existing financial commitments like your car loan or credit cards.
So many people are now choosing to go online for their loans with companies like MiFinance. Unfortunately, it can be a terrible idea if you’re just getting by.
The Interest Rate for Secured Medium Loans is 48%. Maximum Comparison Rate is 67.41% p.a.
MiFinance website retrived January 2020.
That is crazy expensive! You’ll be helping them make a huge profit this year.
They then make this funny claim:
Our loans have the following simple cost structure: 20% of principal amount (establishment fee) + 4% of principal amount per month. There is NO Interest charged on our loans.
MiFinance website retrived January 2020.
Yeah, right…no interest charged on their loans. ? Despite having an interest rate.
On their small loans, there is a Comparison Rate of 138.37% per year. Crazy!
Using MiFinance is a good way to get yourself into serious financial trouble. Luckily, they do follow Australian laws on Responsible Lending Practices. In other words, they will need to audit you first to gauge whether you’ll be able to pay back the original loan.
Payday lending is a joke
If you take out a payday loan, you’re the one making them a huge profit. This is because there are significant upsides for them and very little for you.
They take from you and make a profit off your misery. After all, you’re having a hard time right now which is why you’re looking at some instant cash lenders like MiFinance.
Yep – Australian National TV show is saying the same thing as The Debt Free Community. That is…do not ever get a payday loan.
Unlike other financial products where you can shop around, these guys know that you need emergency money to pay your bills so they almost all charge a high interest rate.
Many people wind up talking to the team at Financial Rights Australia to discuss their options. This is after getting loan after loan thinking they had to do it.
Alternatives to MiFinance
Look – we’re not here to tell you about this other lender because they are all the same.
How they work is find vulnerable people in the community and sell them on the idea of “Instant Cash Today” and other nonsense. They want to profit off your misery.
Then they send the debt collectors. Are you being chased by a debt collection agency representing MiFinance? If so – you’re probably in hot water now.
If you haven’t reached that extreme, you should look at alternatives. It’s clear that payday lending is downright robbery.
These include:
- Just not buying that thing you really need.
- Selling your unwanted stuff on Gumtree
- Getting addition work. Look up recruiting agencies.
- Asking friends and family for assistance right now
- Negotiating with current creditors for better terms
- Requesting us to talk to debt collectors for you
Also, a great one is the National Debt Helpline for free and unbias advice. They can’t talk to debt collectors but can give you some ideas on what to do.
In summary
The advice is pretty straight forward here. Avoid payday loans and the lure of easy applications. You’re being taken along for a ride with anyone including MiFinance.
We’re publishing this on April 1. That’s ironic, isn’t it? You’d be a fool to think that payday lending is a good idea.
We evaluated their Terms and Conditions and offer on their website. Unfortunately, our experience has shown that they provide a shockingly bad deal and the reviews online back up this claim.
You can call them on 1800 825 805 if you’d like to get stuck inside a debt-trap today.
And if you’re being hassled by debt collectors, we could make it stop for you.
