I Got Carjacked!

Hi Scott,

Am I up a brown creek with no paddle? Years ago an ex-partner left me financially screwed. Fast-forward to now and my husband and I have started our Barefoot life and are loving it (even though we are low income earners). However, last year I needed a reasonably priced second-hand car, and with the trade-in we took out a loan with Money3 for $8,000. The interest rate is a hefty 24.95% and the cost of the loan is $6,200 over three years! I know I signed and am liable for the amount, but I feel like I’ve been financially exploited because of my previous situation.
 
Ursula
 
Hi Ursula,
 
Yes, you got exploited.
 
And that’s not just my opinion; it’s also the view of the corporate cop, ASIC, which is currently taking Money3 to court over their second-hand car lending practices.
 
It may be the case that your loan was unsuitable (and unconscionable), so I’d suggest you contact the National Debt Helpline on 1800 007 007 to help you make a complaint to Money3.
 
Here’s the truth: there’s an entire industry that benefits from people’s financial illiteracy. The business model is to trap their customers in a merry-go-round of financial misery that most people never get out of.
 
This is the reason I’m so passionate about financial education in schools: we simply expect kids to know this stuff, when in reality they don’t. And they’re going up against experienced, wealthy finance businesses that know – and use – every trick in the book.

Scott.