Save My Bacon Payday Loans Review

We reveal the interest rates, fees, penalties, terms and conditions and what to watch out for, all in one place

Updated 1 October 2024

Summary

Getting a payday loan is not a decision to make in a rush, even if it feels like you need to.
Save My Bacon focuses on medium-sized loans ($2,000 to $5,000) for a 1 - 3 year period, however given the high interest rate we still categorize it as a payday lender.
There are significant costs involved, and you may find yourself in a worse-off position later on given the interest rates and fees.
We've published this review to examine and explain the important fees, terms and conditions with any Save My Bacon payday loan, as our video below explains.

Our review covers:

Know This First - Save My Bacon and Payday Loans

The more regular repayments you can make, the cheaper your loan will be. Save My Bacon asks upfront how regularly you are paid, and offers repayments around your payday.
For example, making four payments of $200 each week is going to decrease your outstanding loan (and therefore incur much less interest costs) than making a payment of $800 at the end of the month.
Save My Bacon doesn't charge penalty interest rates for late payments, but it does charge a late payment fee.
The 'Total repayment cost' is the original loan amount, interest costs and fees applied.

If you decide to make an early repayment, Save My Bacon doesn't charge any fees to do this. Doing so will save significant interest costs.
Interest rates vary hugely among payday lenders, and we recommend shopping around for a Payday loan. Our payday loans guide has more details.

Save My Bacon Borrowing, Repayments and Fees

The decision to take our a payday loan should not be rushed. In this section we outline the fees, fine print and everything you need to know about what a loan will really cost.

How much can I borrow with Save My Bacon?

Save My Bacon offers one type of loan - the Flex Loan. How much you earn and how regularly you are paid will depend on how much you can borrow. There are three types of loans in total:

Loan type: Flex Loan

Purpose: Short to medium-term loans for major household expenses
Loan amount: $2,000 - $5,000
Interest rate: 0.14% per day, 4.16% per month or 49.95% p.a.
Minimum loan term: 1 to 3 years
Maximum loan term: 3 years
The total amount of Interest and fees are capped at 100% of the amount first advanced.

How fast does Save My Bacon put money into my account?

As stated on their website, "if your loan is approved on a business day, (Save My Bacon) will make the payment to your bank on the same day. The exact time that funds will become available to you will depend on your bank". This means the most you'll wait during a normal working week, Monday to Friday, is up to 24 hours.

What fees does Save My Bacon charge?

Despite Save My Bacon saying "no hidden fees" on its marketing, there are a lot of charges. Generally, if you repay your loan on time and don't default or make a late payment, very few fees will apply. We detail these below:

Loan establishment - $150: This is a one-off fee charged when the loan is issued; the amount is added to your loan balance.
Account maintenance - $4/month: This is an ongoing fee that is charged for the life of the loan. For example, if you borrow for five weeks, you'll pay $20 as it's charged on the last calendar day of each month or the day the loan is repaid in full.
Loan default - $30 per default: If you miss a loan repayment by being overdrawn, this default fee will be added to your loan balance.
Debt collection - $40: If your loan is not repaid, a collection fee is added to the loan balance.

What are the repayment terms?

Save My Bacon asks for your payday frequency upfront, so if you're paid weekly, you will need to repay a portion of your loan weekly.

Early repayments are permitted free of charge, but you'll need to contact Save My Bacon's customer support team directly to make a payment. The sooner you do this, the less you'll pay on interest costs.

Save My Bacon Applications and Alternatives to Payday Loans

If you are convinced a payday loan is right for you, this section explains what Save My Bacon is looking for in an application.

How do I apply for a payday loan?

Save My Bacon makes it clear:

You need to be at least 18 years of age.
You need to be a New Zealand citizen, permanent resident or possess a valid work visa.
You need an active bank account
You need to be employed, and your income must be electronically transferred into your bank account on a regular basis. Your net income needs to meet the minimum requirement of $400 per week.
You need a valid email account, active mobile phone and verifiable identification.
You cannot be bankrupt
You must have sufficient credit history to produce a credit score - for more information, visit our credit scores page and see your credit history for free. Save My Bacon, like most payday lenders, will not lend to anyone who has loans in collection, or who has a recent history of defaulting on loans.

What does Save My Bacon look at in a payday loan application?

Save My Bacon looks at a number of factors when assessing whether to approve a payday loan. This includes:

Whether you spend less than you earn and have increasing bank account balances.
Whether you have enough cash surplus to cover your normal expenses (mortgage/rent/board, food, utility bills, medical expenses and transport), after making debt repayments.
Whether you currently owe large amounts of debt (e.g. credit cards, personal loans or other short-term loans).
Your history of making payments on time and whether or not you have recently been charged late, overdraft, or insufficient-funds related fees.

Are there alternatives to Save My Bacon, and payday loans in general?

Yes - we've listed six possible alternatives to payday loans below. For more information, alternatives and tips, visit our payday loans guide.

Six Alternatives to a Save My Bacon Payday Loan

Before rushing in to apply with Save My Bacon, there are plenty of alternatives. We list our top six below that could save you from getting a payday loan.

Keep your credit cards 'healthy' and consider a cash withdrawal

Before contacting Save My Bacon, look at your current credit card situation.
Find out what your limit is and if cash is tight, budget for the minimum payment (often around 3% to 5% of the balance owed).
Keeping up to date is always better than an outright default.
You can then consider making a cash withdrawal to solve your cash crunch. The interest rate and fees with a credit card cash withdrawal are much cheaper than any Save My Bacon payday loan.

Ask about raising your credit card limit

While taking on more debt is never good, credit card debt is always cheaper than a Save My Bacon payday loan.
To find out where you stand, call your bank and ask them - small increases are often accepted via internet banking.

Consider a balance transfer credit card before Save My Bacon

Paying interest on debt is expensive. Balance transfer credit card applications are usually assessed within 1-2 working days, so if approved, you can save money right away.
Many banks offer 0% interest rates for up to 12 months - you won't be able to apply with the bank you're already with, but many major banks offer deals to help crunch interest costs.

You may be eligible for a Personal loan

Personal loan interest rates are always lower than Save My Bacon, and you have more flexibility with the repayments.
Personal loans usually take some time to be assessed and approved, so they're not for urgent money problems, but they are a lot cheaper.
It all comes down to affordability - if you want to borrow $1,000 and have the means to pay back $100 every payday, explaining this to a lender to help your chances of being approved.

Consider borrowing from family, not friends

Friends and money don't mix - borrowing within families is surprisingly common. The best idea is to start with siblings, then cousins, then parents.
If a family member is willing to help you, make sure you prioritise paying them back. If you don't, you'll burn your relationship, and word will spread. Just be upfront, make repayments and gain respect.

Consider increasing your bank account overdraft and/or changing bank account to one that offers a better deal

Our overdraft fees page sets out what banks charge for providing an overdraft.
The fees can be high, but again it’s cheaper overall and less aggressive than Save My Bacon's Payday loans.

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