Payday Loans- Get Quick Cash Online for Short Time Period

In Australia different studies found that most of the people who borrow payday loans either do not have access to mainstream bank loan or to a credit card. It was further found that 60% borrowers are weighed down by bad credit rating. So, with no other financial solutions available, payday loans seem to be the only way these borrowers can access the finance they are urgently in need of.

The main purpose of a Payday Loans is to provide quick access to cash so that a borrower can easily tide over for a short period of time before they receive their next pay check. For many borrowers payday serves the above stated purpose, but unfortunately for many more borrowers, this loan can become the first step towards getting into debt. Due to high interest rates, higher fees and strict repayment deadlines, what was supposed to be a quick financial solution to help you deal with unexpected expenses could easily become difficult to afford and get you into serious financial trouble. Taking out a second payday loan to repay the first one can make it even worse for you.

Having little-to-no financial literacy can make anyone a vulnerable borrower and payday lenders may take advantage of that. Applying for this loan could be a dangerous prospect if you are not aware about what you are signing up for. Keeping all these things in mind, the Federal Government of Australian has made several attempts to protect borrowers and regulate the payday lending industry by introducing new legislation, which is the Consumer Credit Legislation Amendment (Enhancements) Act 2012 that proposed a number of regulations and restrictions on payday loans.