A recent report looking at use of short-term cash loans showed half of borrowers interviewed had taken out more than ten loans in the previous two years, and three quarters of this group had taken out over 20 loans.[i]
These figures are a clear sign that the high cost and short repayment deadlines of these loans leave many borrowers without enough money to pay for essential everyday living expenses and encourage them to return for further borrowing.
That’s why we’re warning Australians to be wary of Nimble’s promotional offer of one cent loans for first time borrowers. Surely Nimble is not making a profit from a one cent loan, so we can only assume it sees this initial loan as being the first of many – and Nimble’s standard fees and charges cost far more than one cent per loan.
If you regularly use short term cash loans, or if you’re relying on these loans just to get by, you should speak to a free, independent and confidential financial counsellor on 1800 007 007.
[i] Marcus Banks, Greg Marston, Howard Karger and Roslyn Russell (July 2012) Caught Short. Exploring the role of small, short-term loans in the lives of Australians. Final report, page vii.