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For a fee, a pay advance service lets you borrow money before your next pay.
What is a pay advance service
A pay advance service gives you access to money before your usual payday. The service is also known as pay-on-demand or wage advance services.
Some services lend you money based on your expected pay. Others let you access part of the wages you have already earned through your employer.
You may pay a fee, interest or other charges each time you use the service. The money is often available straight away. The amount is usually deducted from your bank account or your next pay.
Where you can get a pay advance
You can get a pay advance in different ways.
Apply directly to a provider. Some providers offer pay advances directly to consumers. You apply through the provider, usually using an app or website. The provider assesses your application and decides how much you can access based on your income and other eligibility requirements.
Use an employer-integrated service. Some employers offer a wage access service that is connected to their payroll. This may allow you to access some of the wages you've already earned before your next payday. The amount available is usually based on your earnings and your employer's arrangements with the provider.
Most services have an app or online portal where you can request an advance, see your available amount and manage repayments. The amount you can access may be limited to a fixed amount, for example $100 per pay cycle, or a proportion of your pay.
What does pay advance cost?
The cost of a pay advance depends on the provider and the type of service you use.
You might pay:
- a fixed fee each time you access money
- a percentage of the amount you access
- Interest
- Transaction or processing fees
- other fees or charges
Even small fees can add up if you use pay advance regularly. For example, a 5% fee costs $5 for every $100 you access. Before you use a pay advance service, check:
- the total cost
- how much you'll need to repay
- when repayments are due
- whether extra fees or charges could apply if you miss a repayment
- how much money you'll have left on your next payday after repayments are deducted
Understand the impact on your next pay
A pay advance brings forward money that you would otherwise have available later. When the advance and any fees are repaid, you’ll have less money available from a future pay for expenses such as rent, groceries and bills.
If you use pay advance regularly, fees can add up. Taking another advance soon after repaying a previous one may also make it harder to manage future expenses.
Alternatives to pay advance services
A pay advance may help in a short-term emergency, but it won't solve ongoing money problems. If you need extra money, consider whether there are other options available to you first.
Ask for more time to pay. If you're struggling to pay a bill, contact the provider and ask for help. Energy providers, phone companies, insurers and lenders may offer payment plans or hardship assistance.
Consider a No Interest Loan. If you need money for an essential household item, medical expense, education cost or another approved purpose, a No Interest Loan (NILs) may be an option. These loans don't charge interest, fees or charges.
Review your budget. Before accessing a pay advance, look at your spending and see whether there are any expenses you can reduce or postpone until after your next payday. Use our budget planner to get started.
Find urgent help. In an emergency, there are services to help you with food, housing and bills, emotional support, and other urgent help with money issues.
Get free financial counselling. If you're regularly short of money before payday or relying on pay advances to cover everyday expenses, speak to a free financial counsellor. They can help you understand your options and develop a plan to get back on track.
- Call the National Debt Helpline on 1800 007 007. Monday to Friday, 9:30am to 4:30pm. Or live chat, Monday to Friday, 9:00am to 8:00pm.
- Aboriginal and Torres Strait Islander people can call Mob Strong Debt Help on 1800 808 488. Monday to Friday, 9.30am to 4.30pm.
Tips for managing pay advance
If you decide to use a pay advance service, these steps can help you stay in control:
- Borrow only what you need. The less you access, the less you'll need to repay from your next pay.
- Check your budget before you apply. Make sure you'll still have enough money for rent, bills, food and other essential expenses after the repayment is deducted.
- Keep track of fees and charges. Even small fees can add up if you use pay advance regularly.
- Use one service at a time. Managing multiple pay advances can make it harder to keep track of repayments and how much money you'll have available on payday.
- Treat pay advance as a short-term solution. If you're using it regularly to cover everyday expenses, consider whether another option may be more suitable.
Avoid using a pay advance to repay another loan, buy now pay later debt or credit card debt. This can make money problems harder to manage.
Remember, you can access free financial counselling to help you work through any money issues or to simply answer any questions that you have.