Don Cayo: Government May Finally Be At Least A Little Bit Serious About Protecting High Risk Borrowers

While it’s perfectly natural to want to go ‘all out’ during the holiday season, it’s important to recognize the true cost of splurge spending. 

Glasses on a pad of paper with calculations. A pen sits on the pad of paper and there is a calculator on the side

There is a significant concern for those who turn to high cost lenders like payday loans to cover their holiday expenditures. Short-term, high-interest loans can put you in a position of having to re-borrow after paying off the initial loan, leading to a cycle of debt that can put you in significant financial distress. As you prepare for the season, create a detailed budget that will help keep your spending in line. If you are going to turn to credit or a loan for short-term support, consider the costs associated when you attach the amount you will pay in interest on top of the original spend. Seeing the total costs after your payments have been made, might make you reconsider some of your purchases!

MNP LTD Trustee Judy Scott was interviewed by The Vancouver Sun to discuss payday loans. The original article was posted online at The Vancouver Sun on December 11, 2015.

Linda Paul

Linda Paul

CIRP, LIT

Senior Vice-President

Servicing: Abbotsford, Chilliwack, Maple Ridge, Surrey, Langley

Latest Blog Posts

2024-09-23

Unlock the power of compound interest

Debt Solutions Lifestyle Debt

Explore what compound interest is, provide examples of how it can impact both investments and loans, and discuss the pros and cons to help you make informed financial decisions.

Read More

2022-05-25

What is my credit profile?

Karen Liberty

Lifestyle Debt Debt Solutions

Knowing your credit profile before you meet with your financial provider can do a lot to help you address any risks or gaps you may want to attend to, and increase your chances of success in the application process.

Read More

2022-03-30

The Payday Loan Trap

Michelle Scheller

Lifestyle Debt Debt Solutions

Almost all Canadians face financial hurdles to some degree or another — but few financial challenges are as costly or self-perpetuating as the misuse of payday loans. Understanding their intended purpose and affiliated risks is essential.

Read More

Consultation icon