How to avoid the big payday on online payday loans

With a growing number of payday lenders offering higher rates than what was offered to regular lenders, some people are finding that they’re not able to make a profit from online payday lending, according to a report.

The report, published by consumer advocacy group Consumer Watchdog, also reveals that online lenders are offering customers more than $20 million in “reward points” for online transactions, which can be used to buy more than 30,000 items, or to purchase items for a short period of time.

“It’s an incentive to buy, and you’re getting a big payday for it,” said the report’s executive director, Nicky Smith.

Ms Smith said the practice of offering online payday loan rewards could potentially amount to fraud.

“If they’re going to give you rewards, they’re probably going to do it for the wrong reason, and they’re also likely to do that because it’s a promotional incentive,” she said.

“And you’re going through a cycle where you’re buying, and then you’re paying off the credit card, and it’s the last payment you’re making on the card, so that’s a huge incentive to not pay off that card.”

So if they’re getting credit card rewards, that’s going to encourage you to not use the card and instead to go and buy things online.

“Ms Smith believes many payday loan borrowers may be using the incentives to pay off the cards, even if they didn’t receive the full amount they were due.”

What they’re doing is they’re using that reward to buy things that are not actually getting the credit, so they’re actually taking the money and not paying it off,” she explained.”

They’re not paying off their card, they’ve got a reward, and so they want to use that reward for something else.

“Consumer Watchdog’s research found that nearly half of people surveyed had lost money through online payday lenders, while more than one in three had experienced an immediate financial hardship, such as losing a job or having to repay debts.

Ms McAllister said while consumers should be aware of the risks associated with payday lending schemes, they should be cautious and not put themselves at risk.”

There are a lot of safeguards and things that can be done to make sure you’re not putting yourself in a position where you have a negative experience,” she told ABC Radio Canberra.”

You shouldn’t be doing anything that you think you can’t possibly be reimbursed for.

“If you’re doing something like that, don’t just say, ‘I’ll get it back, I’ll get my money back’, because if you do, then you’ll be in the position of being unable to get your money back, and that could have a devastating effect on your credit score.”

A lot of people are just really confused, and there’s no right way to do things, and if they don’t know how, it’s really hard for them to figure out.

“Consumer watchdog’s report on payday lenders is available here.