Payday Loans In 2019

21st Century? Bills, Fees, Medical payments and house loan? But now it's time for
you to ease up all your tensions because all these complex problems offer a simple
solution. Payday loans, it's a relief to all your problems! So what's this Payday loan
thing? Let's crack it for you.
Just think of Payday loan like a short-term cash advance with some interest, which
helps you deal with your contemporary crisis, resolves your issues and is due on
your next salary. Sounds good? Yes, it does, these payday things offer the quickest
answers to your financial problems. And to add more to your curiosity, payday loans
in Australia are booming to new levels.
Let's hear it below what are the payday trends in 2019.

Payday Loans: A yearly Comparison

Payday loan industry first got established in the 2000s. Due to its highly praised
benefits, it got an extreme hype attracting more and more users.

A survey shows that in 2006, there were only about 250,000 users of payday loans
in the market, with the timely awareness these users multiplied in numbers. By
2012, these users had grown approximately up to 750,000 users!!!

Focusing more specifically on Australia, Payday loan beneficiaries have

increased by almost 80% over the past ten years! Here’s a link to that ABC,
2016.

For 2019, it has been reported that payday loans of worth $1.85 billion have been
taken for various needs. The chart below explains all.
Which Country benefits most?
Various demographic analyses have shown that the trends for Payday loans have
been up the stairs in most of the developed nations.

Again! The U.S. tops the list for being the largest payday market in the world.

Just imagine for a second, what can be the value of the U.S. market?
Your guesses may go wrong, because of its almost $46 billion!!!! A joke might come
into mind, that may be the U.S. progressed because of Payday market.

Then comes the countries like U.K. and Canada, who have Payday markets touching
almost around $4.8 billion for the U.K. while no concrete data is available for Canada
as the payday industry there varies from state to state.
Coming towards our very own Australia, the Payday industry over here values
around $1.85 billion and is growing with every second.
 Countries Market Value of PAYDAY loans

United States of America $46 Billion

United Kingdom $5 Billion

Canada No exact data but approx. $3 Billion

Australia $1.85 Billion

Netherlands $6.9 Million

Paydays and their Interest rates

We know this thing matters to you the most. So, let's make these payday cap rates
very easy for you.
By the legislation of various countries, fee caps over there vary as well. Let's give
Australia a lead over here.
The payday loans in Australia are regulated by the Australian Securities and
Investment Commission (ASIC). According to the current regulations enforced until
now, a maximum of 24% interest can be charged, with 20% being the basic fee while
4% is the monthly charged according to the number of months. Let's make it easy
for you!
IIf a person borrows $100, for example, then after a month he would have to pay
$124, and $128 if he pays the loan after two months. Got it? No need for thanks!
In the U.K., the rates go much higher as the interest goes as 0.8% per day. Now it
may become a big amount with time.

Australian Rules: You need to know

In 2012, the Australian government introduced the Consumer Credit Legislation
Amendment (Enhancements) Act 2012, which came into force in 2013. Here are a
few of its provisions.

1- A ban has been enforced on loans upto $2000 with return time less than 15 days. The
technical term payday loan has been replaced with “small-amount credit contracts”
(SACCs).
2- The interest rates, as mentioned above, have been limited to 24%, with 20% fixed fee
while 4% is the monthly fee.
3- Penalty on loan defaulters has been restricted up to twice the amount of loans.
4- Payday lenders are required to raise a warning sign advising the borrowers to first
look for other alternatives.
5- Borrowers who receive 50% or more of their income under the Social Security Act
1991 are protected by the 2012 Act.
6- A presumption that loan should not be taken by those already under short term loan
or have had two payday loans in the last 90 days has been introduced.

Reasons: Why people take them?

Ever since its inception, a payday loan has always worked as a short term relief for
using individuals, and the reasons for them vary individually. We are listing some of
them for you.
1. Regular household expenses: The prime reason for the use of Payday loans
have always been the miscellaneous expenses that incur in the household. Most
of the times whenever a family runs out of budget, the only option left for them
is to opt for readily available payday loans.
2. Unexpected Emergencies: Unfortunately, various emergencies also cause
problems, in which the only support left for victims is an instant loan.
3. Vacations or something special: Who doesn't like a pleasant vacation with all
his kins enjoying the Charismas of nature? But a strenuous month may leave you
with nothing. In these kinds of chaotic situations, a low-interest payday loan is
your vacation partner.

A quick Payday survey has been summed up for you as follows:

Well, that's it from our side, a quick and hefty guide to the world of these loans.
Want to know more? Just get to us, don't hesitate to pose any query, we will be here.
Stay Tuned!