Why payday loans are so important given the rising cost-of-living

At a glance:

  • Overview of cost of living of the Australians
  • Importance of payday loans that aligns with the cost of living

The cost of living in Australia and around the world is on the rise. Increasing gas, oil, and grocery prices, as well as other utility payments, are all hurting Australian hip pockets more than they were before the pandemic began. People are struggling to find ways to sustain their recurring costs as the country finally begins to recover from a series of crises – bushfires, COVID-19, droughts and floods.

The situation is even more challenging for those on full-time incomes and those receiving government assistance. Due to this, when one is short of cash between paychecks or has an unexpected financial emergency, a payday loan has become a tempting option to help make ends meet or access money quickly. However, the risk associated with these short-term loans, which are typically due by your next payday, is extremely high.

Taking out a payday loan is the perfect solution if you need to make a small payment urgently, pay off bills that you can’t afford right now, or make small purchases. You may be able to borrow $2000 or less to $5000, but your ability to borrow a small amount depends on how much you earn and your credit rating in Australia.

When you’re struggling to pay your living expenses, payday loans can help you meet your payments on a daily basis. In light of rising living costs, here are a few points that highlight the importance of payday loans:

Payday loans offer a safety net in times of emergency:

Individuals often experience seasonal fluctuations, running out of money any time of the year. Unfortunately, an emergency can happen at any point, leaving you blindsided and without the funds necessary to handle the situation.

With payday loans taking just a few minutes to apply for and the ability to receive a decision within 24 hours, they can provide you with financial security when times get tough. It’s important not to let a bad situation ruin all of your hard work.

A payday loan is an alternative source of borrowing obtained much faster than a traditional loan:

Thanks to alternative lender Spondooli, payday loans can be approved within hours, and the funds are deposited into the nominated bank account within 24 hours of approval.

The approval process for conventional loans (such as those from banks) can take several days, if not weeks, and thus delay funding. Not only can this cause stress for you, but it can also leave you in a vulnerable position as you wait for that much-needed cash safety net. Opting for a payday loan helps you quickly manage your day to day expenses.

Payday loans are potentially more cost-effective in the long run than other types of loans:

Despite the higher interest rates that payday loans can carry, their shorter repayment schedule can produce a more cost-effective option and help you maintain your finances. Despite having a significantly lower interest rate, a long-term loan’s long repayment period (up to 30 years in some cases) can still add-up to be substantially higher than the sum repaid for a payday loan.

Spondooli understands that people, especially families, don’t always have the time to fill out a ton of paperwork and wait weeks for funds from a traditional lender. With us, you can apply for a payday loan online and get approved within minutes; it’s as simple as that.

If you need some extra cash to cover sudden household expenses, like childcare costs, Spondooli can assist you in getting some extra cash to cover emergencies easily.

Leave a comment

This website uses cookies to enhance your browsing experience.

Do you really need a loan today?*

It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

Check your options before you borrow:

For information about other options for managing bills and debts, talk to 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor

Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan

If you are on government benefits, ask if you can receive an advance from Centrelink – website: https://www.servicesaustralia.gov.au/individuals

The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.