By Davidblogs 
Fast cash loans, such as payday loans or short-term personal loans, can provide quick financial relief in emergencies.
According to the Australian Securities and Investments Commission (ASIC), around 1.7 million Australians have used a high-cost, short-term credit product in the past five years.
However, these loans often come with high interest rates—some exceeding 400% APR—making repayment challenging.
If not managed properly, borrowers can fall into a debt cycle, where they take out new loans to repay old ones.
To avoid this, it’s crucial to have a clear repayment strategy. Below are key steps from Crester Credit, who provide financing in New Zealand, to help you repay a fast cash loan responsibly without sinking deeper into debt.
1. Understand Your Loan Terms
Before borrowing, review your loan agreement carefully. Key details include:
- Repayment due date (missing it can lead to late fees)
- Total repayment amount (principal + interest + fees)
- Penalties for late or missed payments
If anything is unclear, contact your lender immediately. The Australian Financial Complaints Authority (AFCA) reports that many complaints arise from borrowers misunderstanding loan terms.
2. Create a Strict Budget
To ensure timely repayment, adjust your budget to prioritize the loan.
- Cut non-essential spending (e.g., dining out, subscriptions).
- Allocate extra funds (e.g., tax refunds, bonuses) toward repayment.
- Use budgeting apps (like MoneySmart’s tracker) to monitor expenses.
3. Pay More Than the Minimum (If Possible)
If your lender allows early or extra repayments without penalties, consider paying more than the minimum. This reduces:
- Total interest paid
- The risk of rolling over the loan (which increases debt)
4. Avoid Rollovers or Loan Extensions
Rolling over a loan (extending the due date) may seem helpful but often leads to:
- Additional fees
- Higher overall costs
- A deeper debt trap
If you’re struggling, contact your lender before the due date to discuss alternatives.
5. Set Up Automatic Payments
Missing a payment can hurt your credit score and trigger penalties. To prevent this:
- Enable autopay (if your lender offers it).
- Set reminders a few days before the due date.
6. Explore Debt Consolidation (If Necessary)
If you have multiple high-interest loans, consolidating them into a single, lower-interest loan (e.g., a personal loan) can:
- Simplify repayments
- Reduce overall interest costs
Check ASIC’s Moneysmart for reputable debt consolidation options.
7. Seek Financial Counseling if Overwhelmed
If repaying feels impossible, free help is available:
- National Debt Helpline (1800 007 007) – Free financial advice.
- Salvation Army Moneycare – Budgeting and debt support.
These services can help negotiate with lenders or set up manageable repayment plans.
Repaying a fast cash loan is just the first step—avoiding future debt is equally important.
Ask yourself:
- Do I have an emergency fund to prevent future borrowing?
- Can I adjust my spending habits to reduce financial stress?
- Should I explore lower-interest credit options next time?
By following these steps, you can break the debt cycle and regain financial control.
Have you successfully repaid a fast cash loan?
What strategies worked for you?
Share your experience in the comments!