News Article

Students Beware of Pay Day Loans!

For the vast majority of situations, pay day loans are absolutely horrendous and best avoided.


Do you remember that bit on The Tinder Swindler, where Simon encourages Cecile to take out some quick-loans to help him escape his enemies? That didn’t work out well for her, and chances are that it won’t for you.

Payday loans feed off your desperation.

They try to block your access to better ways of accessing financial help. The lure of getting cash as quickly as an hour after you apply should be considered in the sobering light of the interest rates or charges. Different loans have different conditions. Some promote that they have no charges but charge an interest rate of up to 48%. Others do not charge interest, but instead charge an account management fee that is equivalent to at least 48%. Debt consolidation loans are almost as bad. There are many fees and charges that are imposed, with little opportunity for your repayments to actually reduce your loan. Debt consolidation companies have been known to sign people into an act of bankruptcy, which can have profound effects on your financial health for many years.

Buy Now Pay Later doesn’t quite cut it either.

It is great to have interest free periods on loans, and partial payment schemes such as Afterpay, and Ezipay, but the penalties for late repayments can be very high. If you are going to use one of these services, calculate when you will be able to complete the payment, and how much this will actually cost you.

There are better alternatives.

Your energy provider (electricity and gas) is part of the Energy Accounts Payment Assistance (EAPA) scheme which gives $50 vouchers to people in need. You could also ask your telephone and internet companies if they have a similar voucher scheme, or if they can put you on a payment plan. You might be able to get a bursary or an interest free loan through the University’s Financial Assistance Unit. If you are on a Centrelink payment you might be able to get an advance payment. There may also be ways to spend less money each week. For example, there are many services around the University that provides cheap or free food, medical services, and other similar types of services.

The SRC has a Guide to Living on Little Money that might be helpful or make an appointment to talk to an SRC caseworker by calling 9660 5222.

Have a look at our events

Latest events

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Dignissim convallis aenean et tortor at risus viverra.

University of Sydney SRC JUNE Students Representative Council Meeting
6th June
University of Sydney SRC Students representative council meeting
3rd July
University of Sydney SRC August students representative council meeting
7th August
University of Sydney SRC September Council Meeting
4th September
University of Sydney SRC October students representative council meeting
2nd October
University of Sydney SRC November Students Representive council meeting
6th November
Stay connected to the SRC

Keep up-to-date with everything going on within your Students' Representative Council and beyond!

Level 1, Wentworth Building G01,
University of Sydney,
174 City Road, Darlington NSW 2008
Phone: 02 9660 5222
Phone & online contact hours: Monday–Friday | 9am–5pm Office opening hours: Tuesday–Thursday | 9am–5pm* *excluding public holidays, May Day (May 1st) and the University Christmas Closure Period

Powered by MSL

© Copyright - Students' Representative Council, University of Sydney