Do you know the rate on that personal loan?
Google has banned the advertisement of payday loans. The Consumer Action Law Centre says the loans are exploitative and that borrowers should find out the annualised percentage interest rate (APR) to compare with other personal loan products.
InfoChoice.com.au lists personal loans with rates starting at less than 6 per cent. However some payday personal loans have rates around 50 per cent per year.
Consumer Action is calling for a cost cap on all payday loans and consumer leases of 48% APR.