Education needed on payday loans
Sweeping industry and educational changes are needed to end what represents a downward debt spiral for many Australians, according to the operations manager for specialist company, Debt Rescue, Rachael Witton.
Witton claims low income, debt-stressed Australians remain easy targets for payday loan providers because they have few other options and do not have access to traditional banks.
Pointing to the benefits offered by DebtRescue’s personal debt management advice, she said payday loans were bringing thousands of Australians to the brink of financial disaster.
“This type of borrowing is a vicious cycle,’’ Witton said.
“Financial hardship drives the demand for payday loans, which then create a further debt burden for the people who can least afford it.
“Generational change is required in our education system to teach us and our children how to manage money better,” she said.
“We also need an urgent reform of the financial hardship provisions used by creditors so there is a more uniformly accepted practice based on what individuals can genuinely afford to be adopted by all creditors.”
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