Consumer Proposals
Are you in debt and weighing your alternatives to bankruptcy? You're not alone. Consumer proposals are a rising trend in Canada, with good reason. Not only do they provide debt…
Gambling and Payday Loans
Recently a new casino (aka ‘gaming facility’) opened up in my area. Since it’s opening, new payday lending stores have been popping up all around the vicinity. Coincidence? I think not.
Payday loans provide the quick cash that fuels a gambling addiction. When the gambler is losing, they can simply head next door to the payday lender, get some instant cash, and head back to the casino to win back their loan and the rest of the money lost, right?
A New Kind of Payday Lender: Credit Unions
Last week, Vancity (one of the top credit unions in BC) introduced a new product called the Vancity Fair and Fast Loan.
Here’s the good news: it’s a lot cheaper than payday loans. As reported by Kevin Griffin in the Vancouver Sun, “If a credit union member borrows $300 for minimum term of two months and pays it off in two weeks, it would cost $2.20, a 19 per cent annual percentage rate.” Whereas a payday loan from the Cash Store for $300 (with a 14 day term) would cost $69, which is 23% interest on the principal and equates to an annual interest rate of 599.64%.
And here’s the bad news:
Payday Loans: The Real Cost
We look at the real cost of payday loans – how they compare to the cost of other forms of credit, both in the short term and long term, as well as compare the varying cost across Canada. We also look at some intersting stats which reflect on the payday loan cycle, in this eye-opening infographic and blog article. If you are struggling to repay a payday loan, or are trapped in a payday loan cycle, contact SolutionsTM for help with your payday loan debt today.
Payday Loans
What is a payday loan?
A payday loan, or payday advance, is a short-term loan of usually 14 days, which you promise to pay back, plus fees, after you receive your next paycheque. The loan is often between 30-50% of the amount of your paycheque.
To qualify for a payday loan, you must provide proof that you have a regular income, a permanent address and a bank account. You will have to sign a loan agreement which states the loan interest, fees, and due date. Most of the time you will need to provide a post-dated cheque for the full loan amount including all fees and interest, or sign a form for a pre-authorized debit of your account on the loan due date.
How much do payday loans cost?
Payday Loan Debt Relief
June 5, 2012
Did you know? Debt problems may be caused by using the services of payroll loans aka payday loans.
Many consumers that use the services of a payday loan company have credit problems, no bank account, a poor or bad credit rating, a lower credit score and are financially desperate. Payday loans are not the only, nor are they the best solution for consumers facing debt problems.
If you are experiencing financial problems Solutions™ will help you to solve your payday loan debt problem today!
