Welfare body issues warning about payday loans
Bosses at the SA Council of Social Service (SACOSS) are concerned about the high levels of debt that Aussies are racking up by using payday loans.
The organisation stated that lenders are luring in struggling people with the promise of low interest rates, only to then hike their fees, the Advertiser reports.
Executive director at SACOSS Ross Womersley told the news provider that excessive loan charges and complex repayment calculations have led to many Aussies coming unstuck.
He added that many of the borrowers were already fighting to cope with the increased cost of living and these loans are pushing many further into debt.
"Unfortunately many payday lenders – not all – really do exploit the vulnerability of people with interest rates that are just absurd and unreasonable," he was quoted as saying.
According to figures released last week by the Australian Bureau of Statistics, levels of credit card debt have now surpassed the $50 billion mark – a record-high for the country.
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