Should I Get a Loan?

You might be finding you don’t have enough money to make ends meet, but is a loan going to make things easier for you? If you are still not sure try some of these options first.

Have you tried all of your options?

The best way to stay out of debt is not to get a loan. You should think about whether you really do need the money in a lump sum try to think about if there are any other options.

If you find yourself in a bit of financial difficulty, or you are trying to save for something big,  there are some other options.

Payment plans

If you are having problems paying your utilities like your water, electricity and gas you can actually call up your provider and arrange to pay in instalments.

This means instead of paying the full bill in one go every few months, you can pay smaller amounts each week or fortnight until it is paid off. Money Help has some great info on how to negotiate a payment plan here.

Review your existing payments

Think about things like internet or your phone bill. Can you change to a more affordable plan to reduce your monthly spending?

If you have a credit card, make sure it is still working well for you. Can you still afford the monthly payments or is it making you spend more money? Consider thinking about re-assessing your credit card and if it is still the best option. Money Smart has some great information on credit cards.

With things like magazine subscriptions, Foxtel or even donations to charities make sure they are not putting you in debt or making it harder for you to live. Consider cancelling these extra things for a few months until you get back on track or save the money you need.

Centrelink advance

If you are receiving income support from Centrelink you may be able to apply for a Centrelink advance. A Centrelink advance is where they pay you a sum of money in advance from out of your future payments. You then pay back a part of it every fortnight out of your payment until the sum has been paid off.

The benefit of this method of borrowing money is that they do not charge you interest on the money you borrowed.


If you are finding it hard to pay the rent one suggestion could be looking for a housemate to help with the costs. Youth Central has a great page with tips on finding a housemate.

No Interest Loans

Like a loan, but  without the added cost of interest. To find out more about these loans checkout our post on no interest loans or the information on the Good Shepherd Microfinance website here.

If you are having a financial emergency

If you are in of urgent money help Money Smart has great Australia wide information and contacts for housing, income support, emergency relief and financial counselling. The Department of Human Services also has some helpful information on Crisis and special help payments that you might be eligible for.  You can also call Financial Counselling Australia for free advice.