High cost credit refers to loans offered by fringe lenders, where as well as a high rate of interest, numerous fees are also charged.

Many disadvantaged consumers are drawn into high cost loans by the advertising which promotes the loans as being available to those with a bad credit history and also advertises that the credit can be accessed straight away. These high cost loans are promoted as a way of solving consumers’ financial problems, but are more likely to keep consumers in a never ending debt trap.

Many people on low incomes or in financial difficulty enter high cost loans because they are not aware of other alternatives which include:

Centrelink provides financial support in addition to regular entitlements, such as a special benefit and crisis payment for people experiencing severe financial hardship (eligibility criteria apply), a pharmaceutical allowance to cover the cost of prescription medicines, rent assistance and telephone allowance. To obtain more information contact Centrelink on 13 10 21 or visit www.centrelink.gov.au

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The ‘no interest loans scheme’ offers loans for essential household goods and medical equipment at no interest. A typical NILS loan is for $600–$1000 and available for essential household goods such as a washing machine, fridge or medical appliances such as a wheelchair. As loans are repaid over 12-15 months, the money is lent out again to other people in the community. NILS are run by local community groups such as Neighbourhood Centres or charities and lend money to people in their local area only.

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Credit unions offer loans for as little as $200 with terms starting at 3 months.

They assess consumers’ repayment ability and lend to those on welfare benefits.

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NAB and the Good Shepherd Youth and Family Service offer consumers a safe credit alternative - the StepUP loan, which has a fixed low interest rate and no fees and charges. StepUP loans are specifically for:

• individuals or families holding a current Centrelink Health Care Card or Pension Card
• individuals or families who have lived at their current address for more than 6 months
• those living in Western Sydney call 9832 2300, Lithgow call 6352 2077 or Bathurst call
  6332 4866.

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The Salvation Army is one of the largest providers of material aid in Australia, through more than 260 community services centres nationwide. This may include assistance to families with:

• cash/cheque
• food vouchers/ food parcels
• clothing
• furniture and other household items
• accommodation vouchers
• housing cost
• electricity, gas, rates and other bills
• public transport fares
• medical and educational expenses
• other forms of help as appropriate to the individual.

To find your local Salvation Army Community Service Centre contact 1300 363 622. Other charities which may also provide assistance are:

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Statewide

Australian Lutheran World Service – No Interest Loan Scheme for Refugees
Tel: 6021 5329

Bobby Goldsmith Foundation Inc. – NSW
For people with HIV/AIDS
Tel: 9283 8666

Sydney

Anglicare Western Sydney NILS® – Rooty Hill
Tel: 9832 2300

Argyle Community Housing – Department of  Housing Residents – Campbelltown
Tel: 4627 0002

Break the Cycle NILS – Macquarie Fields
Tel: 9618 0677

Cranebrook Development Project
Tel: 4730 1242

Dominican Sisters NILS® – Strathfield
Tel: 9554 3172

Fairfield NILS® – Wetherill Park
Tel: 9609 7400

Jubilee Resources – Bondi Junction
Tel: 9387 2300 or 9344 9118

Macarthur NILS® – Campbelltown
Tel: 4625 6487

NILS® Northern Sydney – Chatswood
Tel: 9419 3599

Northwest No Interest Loans Scheme – Baulkham Hills
Tel: 9639 8620 or 9686 2738

St Vincent de Paul Northern Beaches Region NILS® – Brookvale
Tel: 9905 0424

Telopea NILS®
Tel: 9638 7955

Blue Mountains

Lower Mountains Neighbourhood Centre –Blaxland
Tel: 4739 1164

Mid Mountains Neighbourhood Centre – Lawson
Tel: 4759 2592

NILS® at Blackheath Neighbourhood Centre
Tel: 4787 7770

Winmalee Neighbourhood Centre
Tel: 4754 4050

Southern Highlands

Highlands Community Centre – Bowral
Tel: 4862 1122

Hunter/Central Coast

Newcastle-Maitland NILS® – Adamstown
Tel: 0409 307 223

Wyong Shire NILS® – Toukley
Tel: 4396 1555

Illawarra

NILS® at Warilla
Tel: 4297 6595

Southern NILS® – Port Kembla
Tel: 4276 2224 or 4276 3433 (Community Centre)

St Vincent de Paul Corrimal
Tel: 4283 3730

Northern NSW

Armidale Neighbourhood Centre NILS®
Tel: 6772 4373

Bellingen Neighbourhood Centre
Tel: 6655 1239

Lismore Neighbourhood Centre
Tel: 6621 7397

Nambucca Valley NILS® – Macksville
Tel: 6568 2522

Southern NSW

Albury NILS® – Albury-Wodonga Community Centre
Tel: 6025 8325

Anglicare NILS® Shoalhaven
Tel: 4423 1018

Eurobodalla Supported Accommodation NILS® – Moruya
Tel: 4474 7911

No Interest Loan Scheme – Wagga Wagga
Tel: 6921 2381

Western NSW

Anglicare Western NSW – Orange NILS®
Tel: 6393 8600

Deniliquin No Interest Loans Scheme
Tel: 03 5881 5287 or 03 5881 1855

Josephite Foundation – Bathurst
Tel: 6332 4866

Josephite Foundation – Cowra
Tel: 6342 4900

Josephite Foundation – Lithgow
Tel: 6352 2077

Riverside Lifehouse NILS® – Dubbo
Tel: 6884 5540

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