Money3 Loan Debt Guide – What You Need to Know (Australia‑wide)

Money3 is a popular non‑bank lender in Australia that offers secured car loans and unsecured personal loans to people who often can’t access finance from traditional banks. You might have turned to Money3 for quick vehicle finance or a personal loan when bills, repairs or an emergency popped up.

But high comparison rates, monthly fees and long repayment terms mean some borrowers end up owing far more than they expected. In 2026 the Federal Court even ordered Money3 to pay $1.55 million in penalties for breaching responsible lending laws after it failed to properly verify customers’ living expenses. If you’re struggling with a Money3 loan, you’re not alone.

This guide breaks down how Money3 loans work, why they can become unaffordable, the rights and protections you have under Australian law, and practical steps to get debt help across NSW, Victoria, Queensland, WA, SA, Tasmania, ACT and the Northern Territory.

Understanding Money3 loans

Money3 offers two main products: secured car finance (vehicle loans up to $75 000) and unsecured or secured personal loans (up to $30 000). All Money3 loans have fixed interest rates and terms from 24–72 months.

Loan amounts, rates and fees

• Personal loans: Borrow $2 000–$30 000. Unsecured loans under $6 000 usually run for two years, while larger loans may run for three years. Applicants must be over 18, earn at least $480 per week (including Centrelink) and be an Australian citizen or permanent resident. Money3 advertises that it will consider applicants with bad credit or mixed income sources.
• Secured loans: Borrow $5 000–$75 000 using a vehicle as security. These loans can run up to 60 months (five years) or longer for some vehicles. Because the finance is secured, the annual percentage rate (APR) is lower than for an unsecured loan.
• Interest rates: Money3 publishes maximum APRs of 15.45% for personal loans and 12.45% for secured loans. However, the comparison rate – which includes fees and shows the true cost – can be much higher. For example, a $5 000 secured loan over 24 months has a comparison rate of 32.06%, and a $25 000 loan over 60 months has a comparison rate of 18.79%.
• Fees and charges: Money3’s Target Market Determination (TMD) lists an application fee, monthly account fees and a risk fee for loans over $12 000. These add thousands of dollars to the cost of larger loans. The company’s example chart shows that borrowing $25 000 over five years incurs $13 739.42 in fees and charges – bringing total repayments to $38 739.42. A $5 000 loan over two years includes $1 837.25 in fees.
• Repayments: Money3 collects repayments via direct debit and offers weekly, fortnightly or monthly schedules. You can repay early without penalty, but missed payments may attract late fees and extra interest.

Why Money3 debt can become unmanageable

High comparison rates and fees. While the advertised APR may look reasonable, the comparison rate can be double the APR when application fees, monthly charges and risk fees are factored in. Over five years, you could pay nearly $14 000 in fees on a $25 000 loan. This makes Money3 loans expensive compared with mainstream bank loans.

Long repayment terms. Terms of up to 60 months mean the total amount you repay can be very high even if individual repayments seem affordable. A longer term also exposes you to risk if your circumstances change (e.g., job loss or illness).

Borrowers may be vulnerable. ASIC’s case against Money3 involved borrowers who were largely reliant on Centrelink. The Court found Money3 failed to verify living expenses and requirements. For people already living week to week, this increases the risk of entering an unsuitable loan.

Multiple debts. Because Money3 will consider applicants with bad credit, some borrowers already have payday loans, credit cards or Buy Now, Pay Later accounts. Taking on another high‑cost loan can over‑stretch budgets and trigger a debt spiral.

Your rights and protections

Responsible lending obligations

All credit providers in Australia must comply with the National Consumer Credit Protection Act 2009, which requires lenders to:

• Make reasonable inquiries about your income, expenses, and objectives before offering a loan.
• Verify this information (for example, by reviewing bank statements) to ensure the loan is affordable and meets your needs.
• Assess suitability and decline or modify a loan if it would cause substantial hardship.

ASIC alleged that Money3 failed to meet these obligations for some car finance customers, and the Federal Court agreed. The Court ruled that Money3 did not properly verify borrowers’ living expenses. This case shows that if a lender does not follow the rules, it can be held accountable.

Right to hardship assistance

If you’re experiencing financial difficulty, you have the right to ask your lender for a hardship variation. Money3’s Member Support page states that they have staff ready to help customers amend their repayment schedule; you can call 1300 014 870 or email customercare@money3.com.au. You can request:

• Reduced repayments or an extended loan term.
• A temporary repayment pause (moratorium) if you need time to get back on your feet.
• Waiving or reducing fees for missed payments.

Lenders must respond to hardship requests within 21 days. Keep paying what you can while your request is reviewed. If the lender refuses or doesn’t respond, you can lodge a free complaint with the Australian Financial Complaints Authority (AFCA). Money3 is a member of AFCA and must abide by its decisions.

Cancel direct debits if you can’t afford repayments

If Money3 is deducting repayments before you have money for essentials, you can cancel the direct debit with your bank and set up a manual payment plan. Consumer advocates recommend doing this for high‑cost lenders to avoid dishonour fees and overdrawn accounts. You will still need to negotiate repayment of the debt, but you’ll regain control of your bank account.

Steps to manage and overcome Money3 debt

1. Acknowledge the problem

It’s normal to feel stressed or embarrassed about debt, but ignoring it only makes things worse. Gather all your loan documents, including the contract, any add‑on insurances and statements showing fees and charges. Check the loan term, interest rate, comparison rate, and total amount payable.

2. Review your budget

List your income and all expenses, including essentials (rent, food, utilities) and discretionary spending. Use a budget planner or spreadsheet to see how much you can realistically afford to repay while still meeting basic needs. If payments exceed 20% of your after‑tax income or you need to borrow again to make repayments, the loan is likely unsuitable.

3. Contact Money3’s customer care

Explain your situation and request a repayment arrangement or hardship variation. The Member Support page emphasises that Money3 staff can help with flexible payment options. Ask for a reduction in repayments, a pause, or an extension of your loan term. Keep written records of all conversations.

4. Seek external help

Call the National Debt Helpline on 1800 007 007 for free, confidential advice. They can help you negotiate with Money3, check if the loan was unsuitable and advise on formal options like debt agreements or bankruptcy. If you’re in a regional area or identify as First Nations, contact the Mob Strong Debt Helpline.

5. Explore debt consolidation or refinance

If you have multiple high‑cost debts, consolidating them into a lower‑rate personal loan or using a secured asset (like home equity) can reduce interest and fees. Compare loans carefully, paying attention to interest rates, comparison rates and fees. For some borrowers, a regulated Part IX debt agreement may freeze interest and reduce payments. Consider this if you have more than $8 000 in unsecured debts and are insolvent.

6. Lodge a complaint if necessary

If Money3 refuses a reasonable hardship request or you believe the loan was unsuitable, make a formal complaint to Money3. They must respond within 45 days. If you’re not satisfied, lodge a complaint with AFCA. Provide evidence that the loan was unaffordable or that Money3 did not verify your expenses.

7. Build an emergency fund

Once you’re back on track, start saving a small buffer to reduce reliance on high‑cost credit. Even $20–$50 per week can build up over time and help you handle unexpected expenses without borrowing.

Frequently Asked Questions