Given today’s economic situation, it’s no surprise to learn thousands of Canadian households are struggling and relying on credit to carry them through in a financial pinch. While credit can be an incredible tool, credit reliance can quickly spin out of control. All too often, when people find themselves in a cycle of debt, they turn to quick fix options like pay day loans to help them stay ahead of debt payments and the ever-increasing cost of living. While pay day loans also may feel like a viable financial solution in the short-term, their high interest rates and quick repayment schedules can lead to further financial devastation. Sound a little too familiar? Are you drowning in pay day loans, going in circles and feeling helpless?
If you are strapped for cash, it is certainly easy to apply for a pay day loan. Sometimes it’s just a click of a button online and the application takes minutes. More often than not, there is no credit check done prior to approval.
The biggest drawback to pay day loans are the fees and interest charges associated with the loans. If you are unable to pay the loan back on your next pay day and have to roll it over, the fees start to add up and add up quickly. People who resort to pay day loans often inevitably end up sinking deeper and deeper into debt because of the high costs of the loans.
For instance, in British Columbia, as of January 17 2017, the maximum that can be charged for a pay day loan is $17 per $100 borrowed. A 14 day loan charging the maximum cost of borrowing, will have an Annual Percentage Rate (APR) of 443.21%. If you have three pay day loans at the same time, the cycle will be almost impossible to break. If pay day loans have already taken hold and you’re looking for manageable debt solutions that can help you achieve a fresh start, contact your local MNP Trustee today to discuss what options may be available to you. A debt-free future is achievable. It’s just finding the best route for you to get there.
2025-01-08
Lifestyle Debt
Imagine this: you’ve just signed up for a gym membership, bought into a timeshare, or switched to a new service plan after someone convinced you it was a good idea. Now, you’re having second thoughts. It’s called buyer’s remorse, and it’s more common than you might think. But here’s the good news: buyer’s remorse laws exist to protect you.
2024-12-18
Lifestyle Debt
The holidays are a time for gathering with friends and family, sharing laughter, and creating memories. But hosting a holiday party can get expensive, especially with rising costs these days. Thankfully, you don’t need to spend a fortune to throw a memorable celebration. Here are some ways on how to host a fantastic holiday party on a budget.
2024-12-03
Lifestyle Debt
Debt can be a double-edged sword. On one hand, it can be a valuable tool to build credit and achieve financial goals, like buying a home or pursuing higher education. On the other hand, bad debt—like unmanaged credit cards and payday loans—can spiral out of control and lead to significant financial stress if not managed carefully.
