Things don’t always go to plan. Cars breakdown. Appliances malfunction. Unforeseen medical expenses pop up – usually at the most inconvenient time. Unfortunately, that’s just how life goes sometimes.
It’s at times like these that we need access to a little extra cash quickly, as often these bills cannot wait. That’s where cash loans come in. They provide you with a little extra, extra fast.
However, just because you need cash in a hurry, that doesn’t mean you should get ripped off. Read on to find out how you could get a low interest cash loan without any nasty surprise costs.
STEP 1: KNOW THE CAPPED RATE & DON’T PAY MORE
In Australia, cash loan interest rates are capped by the federal government. This means that the amount cash lenders can charge is limited and regulated by national standards.
The amount lenders can charge for low interest cash loans are as follows.
|Type of fee||Maximum charge|
|Loan establishment fee||20% of principal (amount borrowed)|
|Monthly loan fee||4% of principal (per month for loan term)|
All cash loans are legally required to not exceed these fee amounts.
If you apply for a low interest cash loan and the lender asks for a 25% establishment fee or a 8% monthly loan fee, do not accept the loan. This is outside the legal lending requirements and should be reported.
LOW INTEREST CASH LOANS FROM CLUB MONEY
At Club Money, we proudly provide Australians with access to low interest cash loans.
Whether it’s for an unexpected bill or last minute expense, we could help you to get fast cash complete with competitive cash loan interest rates, today.
To find out more, call our friendly service team on 1300 792 932
STEP 2: CHOOSE A SHORTER TERM
cash loans do not feature compound interest or ‘interest on interest’. The monthly fee remains the same for the loan term (4% of the principal).
However, like most loans, the faster you pay off your low interest cash loan, the less you will pay in interest. This is because interest is charged monthly, so the less months in the term, the less you pay.
Here’s how a 3 month low interest cash loan compares to a 6 month cash loan.*
|Loan type and term||Loan amount + 20% establishment fee||Fortnightly repayment costs (inc. monthly fees)||Monthly fee||Total paid in monthly fees||Total to be repaid|
|Cash loan with 3 month term||$600||$94.29||$20||$60||$660|
|Cash loan with 6 month term||$600||$55.38||$20||$120||$720|
As you can see, the fortnightly repayments are higher on the shorter term, however, the overall interest paid is lower.
*This model is for demonstrative purposes only. Amounts are estimates only, actual amounts (including cash loan interest rates) may be higher or lower.
WHAT TO DO IF YOU’RE AT RISK OF DEFAULT
If you are unable to make a payment on-time, contact your cash loan lender. They may be able to help.
For example, at Club Money, we are committed to providing flexible solutions, that cover life’s unexpected expenses, without putting customers under undue financial stress.
Should you, for what ever reason be unable to make a scheduled payment, call us, we may be able to reschedule your repayments to match your situation.
In some cases, as long as you keep us in the loop, we may even be able to wave penalty fees.
STEP 3: AVOID DEFAULTS AND DEFAULT FEES
The final step goes without saying. You should avoid defaults on your loans at all times. However, should you default on your low interest cash loan, then these are the fees which will apply.
Fee costs based on our fee statement. Individual costs, as well as exact cash loan interest rates, may vary between lenders.
|Type of fee||Charge|
|Payment dishonour fee||$15.00 per issuing|
|Arrears letter fee||$15.00 per issuing|
|Default notice||$25.00 per issuing|
In terms of default fees, the most a lender can charge is twice (200%) the total amount of the loan. Enforcement expenses may also apply if the credit provider goes to court to recover the money you owe.
SPEAK WITH A RESPONSIBLE LENDER
At Club Money we take our obligations as a responsible lender seriously. We want our customers to make an informed choice and to not put themselves under additional financial hardship.
We offer transparent fees and straight-talking advice on all of our loan options. If you have any queries regarding our service, call our friendly customer service team on 1300 792 932
For more information visit our low interest cash loans page.