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Summary:

In this video, both the pros and cons of payday loans/cash money are listed and explained. Instead of going into a large amount of detail, the video quickly summarizes both sides of taking out a payday loan and puts it into the perceptive of someone experiencing financial hardships. The video provides valuable insight into understanding all aspects of accessing quick cash. It goes over how almost anyone with a steady job can apply for a payday loan but also explains the negative risks involved which reframes someone from making a decision they will regret. The way the video states each advantage, presents it in a valuable light but still shifts your focus into how it might negatively affect you financially.

Why I chose this video:

This video is straight to the point, easy to follow, and simple to understand. As someone who may not know much about payday loans/cash money and its associated risks, it's easy to comprehend. One useful aspect of this video is that it openly demonstrates both sides' advantages and disadvantages without favouring one side. This allows for someone who may be unsure about taking out a payday loan/cash money to explore both perspectives without any biases involved. Not only does this video explore both pros and cons, but it allows provides advice and counterpoints to someone who may be experiencing financial difficulties.

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Pros and Cons of Payday Loans: Proceed Carefully

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Summary:

This video shares information that most likely resonates and connects with someone who is experiencing financial hardships. The video explains how someone may consider taking out a payday loan because they have run out of options and are using it as a final resource to get them out of their financial struggles. It explains how someone can access a payday loan and what that process may look like, all while explaining the importance of understanding both the advantages and disadvantages. The video also explains what exactly a payday loan/cash money is and how it seems helpful and attractive to some.

Why I chose this video:

I chose this video because it thoroughly explains both the advantages and disadvantages of payday loans and puts it into the perspective of someone who is having a hard time financially. Instead of directly explaining both the pros and cons the video goes about connecting with the audience to make them think about why someone thinks about taking out a payday loan instead of painting a poor image. It also talks about why payday loans seem attractive to people which also helps people who are struggling to figure out if they are making the right decision or are being fooled into something that might make their situation worse.

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Should You Get a Payday Loan? (Pros and Cons)

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Summary:

In this video, the person being interviewed discusses what exactly payday loans are and details about their advantages and disadvantages. He also discusses how payday loans are promoted as being helpful and how they are attractive to people who require access to money. He explains that they are like a cash flow advancement but in most cases cause people to experience a continuous pattern of spiralling debt. The video then continues to explain how payday loans are creating more challenges for consumers since it's causing more and more borrowing, which gets people caught up in a significant amount of debt.

Why I chose this video:

I chose this video because not only does it go over the pros and cons of payday loans/cash money but it puts it into the perspective of consumers. The video discusses from an economic standpoint and provides valuable insight into whether consumers should be able to access payday loans are not. In my opinion, I think this aspect of the information provided is rather useful than the other videos. Since it talks about the effects on society as a whole instead of a singular person it makes the information much more impactful and influential in terms of deciding whether to take out a payday loan or not.

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Payday Loan Lenders: Pros and Cons - Brian Dijkema (Guest)

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Summary:

In this video, the person speaking briefly explains what exactly a payday loan is, how it works, and why people choose to get one. He explains how the process works through long-term and short-term time frames and provides realistic examples of what could happen if you go through with getting one. He describes fake scenarios with real digits involved and interest rates to make the audience understand how dangerous it can be in terms of falling into more debt and being stuck in a repetitive cycle. He also explains how taking out a payday loan can prevent you from getting other forms of credit since most other lenders would even think of considering you.

Why I chose this video:

I chose this video because instead of simply stating the pros and cons of payday loans/cash money, the speaker uses real-life examples and conveys the information in a way that will make you think about the future. Speaking to the audience in a way that will get them to think about their future and how it may affect them from a long-term perspective helps people think their decisions through. It also helps them consider all factors involved such as being able to take out another loan from other lenders. I think this is useful because it gets people to think their actions through and make a decision that will most likely benefit them and eliminate as many risks as possible.

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A VIDEO GUIDE TO PAYDAY LOANS | HOW CASH ADVANCES WORK | PROS & CONS OF PAYDAY CASH ADVANCES

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Summary:

This website is very informative especially, in the sense of helping make the right decision before considering taking out a payday/cash money loan. This website pretty much covers all aspects of what you need to know before taking out a payday loan. It provides information on how to apply for a loan, how to repay it, and the circumstances involved if you can't repay it. This website is the perfect guide to learning as much information as you can about payday loans and warns you about the risks associated with it. Overall, it basically goes over everything you need to know and covers all the risks and potential benefits involved.

Why I chose this website:

I chose this website because it covers pretty much every aspect of payday loans and is very informative in terms of considering whether or not you should take out a payday loan. One thing I found useful about this website is that it provides a body of knowledge about what exactly it is and what to watch out for. It also provides resources to get help if you find yourself in a situation where you need it as well as a list of frequently asked questions, including does a payday loan affect your credit score, what exactly are payday loans meant for, can you have more than two payday loans at once, etc. Overall, the information is very insightful and is a one stop shop to discovering all the information you need to know about payday loans before taking one out.

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Life happens - we get that. So when an unexpected financial curveball comes your way, the prospect of a payday loan might seem like a saving grace, providing quick and easy access to cash just when you need it. If you're considering taking out a payday loan, you certainly aren't alone. The Canadian Consumer Finance Association estimates that nearly two million Canadians a year make use of payday loans.

However, it's essential to remember that these types of loans can be very risky, and are often more expensive than they seem at first glance. Many of our clients have signed up to our Orderly Payment of Debts program after falling into a debt cycle caused by payday loans. For example, Trevor who ended up with more than $60,000 in debt through payday loans. Or Russell who paid off $35,200 in credit card debt and payday loans.

As we take a deeper dive into the subject of payday loans, we'll consider both their advantages and disadvantages, and we'll do our best to keep an open mind. If you are in a situation where you are considering taking out a payday loan, it's best to make sure you have as much information as possible before making a decision. So, you're doing the right thing by reading this and staying informed.

What is a Payday Loan?

A payday loan is a form of short-term credit, seen by many to be slightly dangerous due to the high fees and interest rates that are often part of the repayment. Sometimes referred to as a high-cost loan or high-cost credit, payday loans allow you to borrow up to $1,500 and usually allow you up to 62 days to pay it back.

However, payday loans are in a credit category of their own and there are a few things that set them apart:

They're designed for short-term needs, usually over the course of a few weeks.

Qualification doesn't always depend on a credit check.

Instead of an interest rate, you'll pay a flat fee, as long as you repay the loan on time.

The repayment schedule is usually designed to align with your paydays.

When your next paycheck arrives, you'll be expected to repay a portion or all of the loan, depending on the agreement reached. Please be aware that if you fail to pay on time, additional fees and interest charges will pile up, and your financial situation can become unmanageable quite quickly.

Not all lenders are created equal and it's important to confirm that the lender you are considering is a licensed payday loan lender.

How do Payday Loans Work?

Applying For a Payday Loan

One of the reasons payday loans are so common is that applying for a payday loan is a fairly straightforward process, with less checks and balances than other forms of credit applications. Lenders will normally ask for proof of a regular income, a bank account, and a permanent address. To secure the loan, you might be asked to fill out a form allowing the lender to withdraw their payment when it is due, including fees, directly from your bank account - a process known as a pre-authorized debit. Alternatively, you could be required to provide a post-dated cheque for the total loan amount including fees.

Once your application is approved, you usually receive the funds either through a deposit into your bank account or in cash. In some cases, payday lenders might issue you a prepaid cash card, but remember, it could cost extra to activate and use this card.

Repaying a Payday Loan

Repaying a payday loan can sometimes be just as simple as applying for one. Some lenders require you to repay your loan at the same location where you got it. Before you take a payday loan, you will be asked to sign an agreement that generally details the loan amount, fees, payment schedule, and due date. It is very important to read this agreement thoroughly and ask about anything you don't understand.

What Happens If You Can't Repay a Payday Loan?

If you can't repay a payday loan, the consequences can be quite serious and may lead to a dangerous debt cycle. In the first instance, the payday lender may charge you a fee if there aren't sufficient funds in your account. Your financial institution might also levy an insufficient funds fee (NSF). Moreover, interest can accrue on the outstanding amount, and the total sum owed can continue to increase drastically. It is critical to understand that the interest rate can sometimes be as high as 300% to 600%.

In worst-case scenarios, your debt could be sent to a collection agency, which could then appear on your credit report, or the lender or collection agency might sue you for the debt.

Let us help

If you think you may have difficulty repaying a payday loan, the best thing you can do right now is to give us a call. Our unbiased, non-profit credit counsellors have years of experience helping people with these kinds of loans and will be able to assist you right away.

Pros & Cons of Payday Loans

Pros of Payday Loans

Cons of Payday Loans

Quick Access to Cash: Payday loans can often be obtained relatively quickly, sometimes within the same day. This can be helpful in an emergency situation.

High Interest Rates: Payday loans often come with very high interest rates, making them a more expensive and risky form of borrowing.

Easy to Qualify: Lenders often don't require a credit check, making these loans accessible to people with poor or no credit.

Short Repayment Period: Payday loans usually must be paid back by the borrower's next payday, which can be a challenge if someone is still facing financial difficulties.

Few Requirements: Generally, the only requirements are proof of income, proof of address and a checking account.

Risk of Debt Cycle: If a borrower cannot pay back the loan on time, they may need to take out another payday loan to cover the first, potentially leading to a cycle of debt.

Lender Choice: There are many payday lenders, giving consumers different options to choose from.

Potential for Scams and Exploitation: Some payday lenders may not follow best practices or may be outright scams.

Potential Solution for Emergencies: If used responsibly and paid back on time, a payday loan can help in a financial emergency.

Negative Impact on Credit: If a borrower fails to repay the loan, it could be sent to a collection agency, causing a serious blow to someone's credit score.

The Time & Place for Payday Loans

While we would generally advise on avoiding payday loans wherever possible, we do understand that life has a way of putting unexpected obstacles in your path and that for some people, a payday loan may be the only option available IF they can repay the loan on time. Indeed, millions of Canadians turn to these short-term solutions each year. Payday loans offer a lifeline for those in immediate need, with quick access to cash, few qualifying requirements, and a variety of lenders to choose from. The problem is that low-income Canadians are getting caught in a trap. They often need payday loans to cover regular monthly costs like rent, utilities, car payments, and more. Unlike single emergencies, these are structural issues in their finances that aren't going away soon. As a result, they have to keep borrowing money that they can't repay for the same expenses they can't afford, so their overall expenses are much higher and are escalating each month because of late payment fees and interest.

That said, the potential dangers of payday loans should be looked at very carefully. They come with very high interest rates, short repayment periods, and the risk of falling into a cycle of debt. Not paying on time can result in huge fees, unreasonably high interest rates, and damaging impacts on credit scores. If your credit score has already been affected by a payday loan, learn to rebuild your credit.

Understanding credit scores and the fine print of payday loans is crucial for anyone considering taking out a payday loan. Hopefully this blog post has left you better informed about this credit option. If you are still unsure and you have any questions or concerns whatsoever, give us a call. Our unbiased, non-profit credit counsellors will be able to help.

Frequently Asked Questions

Do Payday Loans Affect Your Credit Score?

Payday loans do not affect your credit score unless you fail to repay on time. In which case, the payday loan company may refer your case to a collections company, which will negatively impact your credit score.

Is it Bad to Have a Payday Loan?

We would always advise people to avoid the use of payday loans if they can. They come with high fees and interest rates and can cause a debt cycle when not paid on time. However, we also understand that they can be a lifeline for some people, so we never judge clients who use them. The most important thing is that you fully understand the terms and that you repay them promptly.

What are Payday Loans Meant for?

Payday loans are designed for short term needs. For example, if you have an emergency and need access to cash quickly. They are usually set up so that they can be repaid by the time the borrower receives their next paycheck.

Can You Have Two Payday Loans at Once?

Yes, you can have two or more payday loans at once, just not with the same lender. However, we strongly recommend against multiple payday loans as this is how clients end up in the payday loan cycle. An unfortunate common scenario is when someone cannot pay back their loan so they take out another payday loan from a different lender in order to pay back the first lender. Some companies will also provide a payday loan and an installment loan instead.

Can Debt Consolidation Help With Payday Loans?

Yes, you may be eligible to consolidate your payday loan debt. There are several options available, including the Orderly Payment of Debts program for Albertans. Our unbiased credit counsellors can help you decide which option is best for you.

Additional Resources for Payday Loans

Have questions?

Need more information or want to talk to an accredited financial counsellor for peace of mind? Let us help.
Call 1-888-294-0076 or book an appointment. It's free for all Albertans.

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The Pros & Cons of Payday Loans | Read This Before You Borrow

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If you are in a tough financial situation and are considering a payday loan, read this first to understand the pros & cons of payday loans and alternatives.

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Summary:

This website covers many aspects of what a payday loan is, how it works in Canada, the advantages of payday loans, and the disadvantages of payday loans. This website quickly summarizes how many Canadians need access to quick cash which would be a payday loan and what the process of applying for one looks like. It explains how the process works in terms of the application and what the conditions are for making the repayment. It also provides valuable information for successfully taking out a payday loan but actively explains the disadvantages involved and how dangerous it can really be.

Why I chose this website:

I chose this website because it's straight to the point and gets the message of the potential risks/dangers associated with it across. This website is informative and highlights key benefits for helping someone in an emergency situation but still cautions people to make the right decision and encourages the audience to be wary. I think this website is useful because instead of bombarding users with loads and loads of information it gets the message across in a well-executed manner. This website is also influential enough to help someone out in a difficult and time-sparing situation which could be the make or break of their financial hardship. It also provides plenty of insight into both the advantages and disadvantages.

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A payday loan is a popular financing option for Canadians who need access to cash quickly. These short-term loans can provide immediate financial relief for unexpected expenses, such as car repairs or medical bills. They can be a viable solution for those unable to obtain traditional bank loans due to poor credit history. While payday loans in Canada have been subject to some controversy due to their high-interest rates, they can be a valuable resource for those in need of emergency funds.

How do Payday Loans Work in Canada?

When you take out a payday loan, it's expected that you pay back on your next pay. In Canada, payday loans are offered by lenders who are regulated by provincial and territorial governments. Here's how they work:

Application: To apply for a payday loan in Canada, the borrower must provide proof of income, a bank account, and identification. Your eligibility will be accessed by the lender based on your income and other factors.

Approval: If the borrower is approved for a payday loan, the lender will provide the loan amount in cash or deposit it into the borrower's bank account.

Repayment: Payday loans in Canada are usually due on the borrower's next payday, usually within two weeks. The borrower must repay the loan amount plus interest and any fees charged by the lender.

Renewal or rollover: If the borrower is unable to repay the loan on the due date, some lenders may offer a renewal or rollover option, which allows the borrower to extend the loan term by paying an additional fee.

Advantages of payday loans in Canada

Quick application process: Payday loans have a fast application process, and borrowers can receive funds within hours.

No credit check required: Payday lenders typically do not require a credit check, which can make them an option for borrowers with a poor credit history or no credit history.

Flexible use of funds: Borrowers can use the funds from a payday loan for any purpose, such as paying bills, covering unexpected expenses, or making emergency repairs.

Convenient repayment: Payday loans in Canada are typically due on the borrower's next payday, making repayment convenient and predictable.

Availability: Payday lenders are available in many parts of Canada, providing easy access to emergency funds for those in need.

While payday loans can provide some advantages, it's important to consider the potential risks and drawbacks as well. Payday loans in Canada can have high-interest rates and fees, which can make them a costly borrowing option. Borrowers should carefully review the terms and conditions of the loan before applying and consider other alternatives to avoid getting trapped in a cycle of debt.

Disadvantages of payday loans

High-interest rates and fees: Payday loans in Canada can have very high-interest rates and fees, making them a costly borrowing option. The interest rates can sometimes exceed 600% annually, making it difficult for borrowers to repay the loan on time.

Short repayment term: Payday loans in Canada are typically due on the borrower's next payday, which can make repayment challenging for those who are living paycheck to paycheck.

Risk of getting trapped in a cycle of debt: Some borrowers may find it difficult to repay the loan on time and may opt for renewals or rollovers, which can result in additional fees and interest charges. This can lead to a cycle of debt, where the borrower takes out new loans to repay existing ones.

Predatory lending practices: While payday loans in Canada are regulated, some lenders may engage in predatory practices, such as charging excessive fees, misleading borrowers, or harassing them for payment.

Impact on credit score: Defaulting on a payday loan or not defaulting does not have any impact on your credit. Meaning there is no expectation for credit increase even with diligent payment.

Payday loans can be a risky borrowing option, particularly for those who are already facing financial difficulties. Borrowers should carefully consider the costs and risks associated with payday loans before applying and exploring alternative sources of credit, such as personal loans or lines of credit.

Should I take out Payday Loans?

Whether or not you should take out payday loans depends on your financial situation and needs. Payday loans can be a viable option for those who need access to emergency funds quickly and do not have access to other forms of credit. However, payday loans can be expensive and can trap borrowers in a cycle of debt if not used responsibly.

Before taking out a payday loan, Canadians should carefully consider the costs and risks associated with the loan. They should also explore alternative sources, which may have lower interest rates and fees. Also, you can try to create an emergency fund or savings plan to help you manage unexpected expenses without relying on high-cost borrowing options.

In general, payday loans should only be used as a last resort and be repaid as quickly as possible to avoid additional interest and fees. Borrowers should also ensure that they are working with a licensed lender and that they fully understand the terms and conditions of the loan before applying.

Conclusion

If you have lots of debt to settle, it can be overwhelming. The burden of debt can be lifted when you seek help. By speaking with debt relief experts at EmpireOne Credit, you will have peace of mind and see your debt go down while you rebuild your finances. We offer a friendly consultation that will help you feel relaxed and explain your situation to us without the fear of being judged. Your debt can be reduced by up to 80%, and interest will stop immediately. Schedule a free consultation with us today by calling us at (416) 900-2324 or fill out the form on this page. Debt-free feels good!

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Pros and Cons of Payday Loans - Empireone Credit

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How do Payday Loans Work in Canada? Learn about Pros and Cons of Payday Loans and Should I take out Payday Loans?

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Summary:

This website, explains and briefly goes over what a payday loan is and pretty much tells users to avoid them to explore other options. The website briefly summarizes how they work and how they are able to help people during difficult times. Although they can be helpful and seemingly pull people out of tight cash flow scenarios, there are many risks involved. From having to pay a significant amount of money as per repayment due to extremely high interest rates it warns users about the likelihood of experiencing more debt that is very challenging to get out of. Due to this issue with payday loans, the website provides alternatives to help resolve the financial emergency.

Why I chose this website:

This website focuses more on the disadvantages side and explores alternatives to taking out a payday loan. I think this information is very helpful rather than just telling people about the risks involved because most people in this situation don't have a lot of time on their hands and need a quick solution. People who are considering taking out a payday loan are most likely under a lot of stress and explore the internet to justify their decision but in reality, can't find a quick solution which leads them to follow through. I think these alternatives provided are very useful and act as an eye-opener to people who are experiencing financial hardship.

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The demand for payday loans has skyrocketed in the past year and it's not surprising given the effect COVID-19 has had on the economy, and on our professional and personal lives. Here is an overview of the pros and cons of a payday loan, what your options are and how we can help.

What is a payday loan?

A payday loan is a short-term, high-interest loan, usually of $1,500 or less, offered by private companies, instead of banks or other financial institutions. In most cases, you have to pay back the loan within 62 days or so. However, the rules around these loans vary widely across Canada, with Quebec having among the toughest regulations, making it difficult for the big payday loan companies to operate there.

What's good about them?

Payday loans are very easy to get. You don't need security as you would with a bank - as long as you have an income, an address and a bank account, you should be able to find someplace to loan you money. You can also find payday companies everywhere - both online and in your neighbourhood. The loan companies are usually regulated by the province and require a license to operate, so they are not free to charge you any fee they want, with any terms they want. There is generally a cooling-off period of about 48 hours where you are able to cancel your loan. You may be considering this type of loan to buy food for your family or other necessities, and so any financial assistance is welcome.

What's the downside?

Well, they are very expensive. Even with limits on the fees lenders can charge you, the actual cost of the loan can be exorbitant. For example, in most provinces, you can pay anywhere from $15 to $25 per $100 you borrow. If you count on multiple payday loans throughout the year, it adds up. Relying on payday loans can lead to a cycle of debt that is tough to break.

What if I can't pay back a payday loan?

If you default on your loan, the lender may have several options open to them, such as charging you even more fees, garnishing your wages, selling your loan to a collection agency, and suing you, among other actions that depend on the regulations where you live. All of this can affect your credit score, your quality of life and can lead you into a downward spiral of debt. None of this is good.

OK, I'm convinced. But I need money. What are my other options?

The ease of a payday loan can be hard to resist, especially since you can secure one online or down the street. As discussed, the obstacles to getting one are pretty low - but the fees can be very high. There are options and we can help you decide which one is best for you. Here are just a few alternatives to a payday loan:

a. COVID-19 relief. Aside from the government programmes available for COVID-19 relief, there are other regulations that may help you out, like mandatory rent freezes, deferred credit card payments and lower interest rates. The details vary widely and can change quickly so seek advice as to what may be available to you where you live.

b. Bill management. Develop a plan and then ask companies for a payment extension or perhaps a payment plan where you can pay them back over time. And if you need a loan to pay off your credit card, there are options here, too. We can advise you.

c. Personal loan. Yes, of course, these are loans, too, but the interest rate will be lower and you can pay it back over a longer period of time.

d. Community. If your needs are more immediate, such as food or clothing, there are usually multiple local resources available to help out.

e. Government. Perhaps you qualify for support that you are not yet aware of. Federal, provincial and local governments offer many forms of assistance for those who need some support, like Ontario's short-term financial help, for example.

f. Gig economy. If you are able and can do so safely, consider driving or delivering people or goods, making face masks, helping people in your community with chores, selling things you no longer need on marketplaces - and offering to help others sell their stuff, too.

g. Credit card advances. While a credit card cash advance is not generally recommended due to high fees, it can be an alternative to consider in some circumstances.

The Take-Away

Although payday loans are accessible and easy to get, you will pay for the convenience at a time when you're looking to pay less and not more. You have options and we can advise you as to what is available where you live and what course of action is best for you and your family. Get in touch with us. LegalShield Canada is here for you.
Articles on the LegalShield.ca website are for informational purposes only and do not constitute legal advice or opinion in any manner. Laws mentioned in the articles vary from province to province. Any links to third-party sites in our articles are for general information purposes only and LegalShield is not affiliated with, nor does it endorse, the content of linked sites. It is always advisable to seek legal counsel - and LegalShield can help.

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The Pros and Cons of a Payday Loan - LegalShield Canada

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The demand for payday loans has skyrocketed in the past year and it's not surprising given the effect COVID-19 has had on the economy, and on our professional and personal lives. Here is an overview of the pros and cons of a payday loan, what your options are and how we can help.

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Summary:

This website is straight to the point and simply lists out each advantage and disadvantage in an easy-to-follow manner. It goes over how it's convenient in terms of accessing quick cash which makes it attractive to people in tight cash flow situations. It also explains the benefits of how it's quick in terms of not having to stand in a long line or book any appointments. Although these aspects may seem attractive to people who are in need of quick cash it still draws attention to all the potential risks associated and emphasizes how it can cause a continuous chain of debt.

Why I chose this website:

I decided to choose this website because it doesn't consist of many biases since it explains both the advantages and disadvantages of payday loans without putting it into a more personal manner. It briefly explains both sides that's easy to understand for someone with a lack of knowledge and goes over what they should know before following through with taking out a payday loan. I think this aspect is useful because it provides an open-ended learning opportunity for someone who is looking to learn more information and be aware of the risks. I think open-mindedness is important for users to learn equally about both sides and make own their decisions.

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Relying on Payday Loans with Bad Credit Score

It seems like when Canadians are struggling financially, they lean towards Payday Loans for sane day cash advances and cash loans.

Data from SEMrush showed that Canadians have Googled " Payday Loans" far more frequently than any other types of loans within the last year. About an average of 29,000 searches per month for Payday Loans outranked Mortgage Loans searches which came in second with 18,800 searches a month. Student Loans searches came in at a close third with 17,800 a month.

Payday Loans lending companies in Canada, such as Western Union and Money Mart, are a great short-term financial solution if you are in an emergency financially. With payday loans, you're getting your money on the same day, and you'll be covered at least until you get your next paycheck.

However, there are some pros and cons associated with borrowing from a Payday Loan companies. First we'll list the pros.

Pros of Payday Loans

It's Fast

As long as you provide the required documents, you can get your applications approved within hours, as opposed to a few days at conventional banks. This means you can get your money on the same day.

It's Convenient

Being able to apply online for Payday Loans will allow you to avoid standing in line, or booking appointments. Also, you'd be able to get your money in cash. This helps when you are trying to pay back a friend or family, or help them in times of need.

If you were to apply for a conventional loan, you would receive your money digitally. Credit or debit cards aren't as convenient as cash during emergencies.

You Qualify Easily

If the lender can verify that you have a stable source of income and a permanent home in Canada, then most likely you will have your application approved.

Cons of Payday Loans

High Interest Rate

Lenders understand the immediate risks associated with their typical bad credit score borrowers, so they charge a high interest rate. A typically Credit Card averages just under 20% APR annually. A payday loan, on the other hand, comes with interest that averages to 300% when calculated as APR.

Also, if the borrower miss the repayment date, additional fees will apply.

High Repayment Installations

Payday loans companies will trap you in a high cycle of debt. They know that most Payday Loans borrowers are limited to financial flexibility, but they still require a high repayment installations after lending you money. In most cases, the client will be unable to pay off the debt in time and high interest rates will rack up.

Collateral

Lender will also require a pre-authorized cheque as collateral should they need to withdraw from your account for payments. In addition, these types of loans also come with terms and conditions that is of disadvantages to borrowers. Those who fail to read all the fine print can find themselves in a bigger mess when they fail to pay back their debt in time. Once the agreement goes awry, lenders can pursue all legal options, including collection tactics, to get their money.

Payday Loans companies take advantage of borrowers with bad credit score who thinks they got no other outs.

Think Long-Term and Start Building Your Credit Score

Payday Loans companies take advantage of borrowers with bad credit score who thinks they got no other outs. Instead of being the victim of high interest rates, you can work towards improving your credit score. One of the faster route to higher credit is to get a car loan. Not only can you build your credit score by making affordable payments every month, you will also have a vehicle to get you around. Just take 2 minutes out of your day and apply with Canada Auto, and get approved within 24 hours.

You can click on this link and fill out our application, or call 1-855-550-5565 to speak to an auto loan expert who can guide you through the application process.

Once your credit is at a reputable score, banks will be begging you to borrow from them.

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Payday Loans: Pros and Cons - Canada Auto Experts

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Relying on Payday Loans with Bad Credit Score It seems like when Canadians are struggling financially, they lean towards Payday Loans for sane day cash advances and cash loans. Data from SEMrush showed that Canadians have Googled "Payday Loans" far more frequently than any other types of loans within the last year.

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Summary:

This image visually demonstrates the importance of making a well-thought-out decision and being cautious about payday loans. It's an interesting way to demonstrate how expensive they are and to tell people to basically avoid them as much as they can.

Why I chose this image:

I chose this image because it's a real eye-opener to see how the payday loan really works in the long run rather than to actually experience the challenges associated with it.

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Summary:

This image visually demonstrates the key pros and cons associated with payday loans. The information provided is truly valuable and insightful to someone who is considering taking out a payday loan.

Why I chose this image:

I chose this image because it pretty much sums up the important information that someone may need to know when deciding on whether or not they should take out a payday loan. I also think it's useful because a lot of key information is brought forward which could be the make or break of someone's decision.

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Something that I learned from this topic that really surprised me is that members of the government do think providing access to payday loans is benefical for consumers. I think it's not very ethically to have something like this available if it's only going to practically make their financial situation worse in the long run due to the extremely high interest rates.

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This topic is relevant to me because I am young and still figuring out the challenges and decisions many adults face. I think it's important to learn and be aware of these resources because the world revolves around money and many of our everyday challenges are associated with it. I would much rather be knowledgeable about something like this topic because in most cases payday loan services are presented as being a helpful tool.

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I think the most important piece of knowledge to be aware of is that although payday loans may seem attractive it is important to not be fooled be their presence. I think it's important to emphasize the importance of considering all aspects of payday loans before making a decision because it could change the entirety of your existence.

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This padlet will summarize and explain the pros and cons of payday loans/cash money. Payday loans/cash money is a short-term loan that is rather expensive and has very high-interest rates. These high-interest rates make it extremely difficult for someone who is experiencing financial hardships to not pay off the loan immediately. This causes people to fall into a continuous pattern of spiralling debt.