Experiencing a financial emergency or finding that your pay cheque is simply not stretching to the end of the month and you’re short on cash? Resorting to payday loans is rarely a solution to your financial difficulties. Read on to find out more about payday loans, how you can get caught in the payday loans debt cycle and how to get help to break the payday loan debt cycle.
What is a Payday Loan?
Payday loans are generally a short-term loan intended to be repaid with high rates of interest and fees from your next paycheque and are generally the most expensive way to borrow money despite interest rates being regulated in certain provinces. The payday loan debt cycle starts when you can’t afford to pay off the loan together with the high interest and fees from your next paycheque and to solve the problem you are forced to take on another payday loan to cover the first. This debt cycle can continue for months.
In provinces where Payday loan interest rates are regulated such as Alberta, many people have simply borrowed even more money or are accessing Installment loans offered by the Payday loan providers which are unsecured, high interest, subprime short term loans. In many cases providers of Installment loans simply set up shop in premises previously occupied by Payday loan companies specifically targeting people with poor credit, lower incomes and those who are struggling to get by.
Where to Get Payday Loan Help
If you are struggling with the stress of repaying Payday loans or short term high interest Installment loans or any other debt, call Hardie & Kelly Inc, Licensed Insolvency Trustee and explore your options and get Relief from Debt now.Previous: "How Debt Affects Your Life" Next: "Debt in Retirement"