The Debt Trap: How payday lending is costing Australians
The Debt Trap: How payday lending is costing Australians projected that the gross amount of payday loans undertaken in Australia will reach a staggering 1.7 billion by the end of 2019. It also found that:
- Over 4.7 million individual payday loans were taken on by around 1.77 million households between April 2016 and July 2019, worth approximately $3.09 billion.
- Victoria is the state leading the country with the highest number of new payday loans
- Digital platforms are adding fuel to the fire, with payday loans that originate online expected to hit 85.8% by the end of 2019.
- The number of women using payday loans has risen from 177,000 in 2016 to 287,000 in 2019, representing a rise to 23.13% of all borrowers. Close of half are single mothers.
The report was released today by over 20 members of the Stop the Debt Trap Alliance – a national coalition of consumer advocacy organisations who see the harm caused by payday loans every day through their advice and casework.
Read the full report here [PDF]
Infographic: Payday lenders are driving Australians into debt [JPEG]
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since the review of the Small Amount Credit Contract laws started.
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since the Government accepted recommendations of the review.
This report is brought to you by the following members of the Stop the Debt Trap Alliance:
