https://padlet.com/catherinepeco/20t80ta2puiur5d5 Payday loans/ Cash money en-us 2020-11-29 22:46:19 UTC 2025-11-14 16:26:46 UTC hello@padlet.com https://padlet.net/icons/png/1f4b3.png catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/972967453 My wall covers debt traps such as payday loans, credit cards, financial mismanagement, and the institutions that provide these services. There were many cons of these types of access to cash businesses except for the business itself!  The only pros that I could uncover was that if someone needs money for an emergency, they are able to get it.  The other "benefit" is that the person can go outside of the banking system if they want to avoid paying taxes or child support.  Most of the information outlines the negatives to the people that are often forced to use them. They prey on those that can least afford it! It is very upsetting. ]]> 2020-11-30 19:10:49 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/972967453 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/972991085 This article outlines the top five reasons that Canadians are in debt. The number one reason is abusing credit cards. It is an ongoing problem in Canada as it is so easy to use and the banks/businesses are so quick to give them out. The interest rates and penalties are high making it difficult to pay it off if the person gets into trouble. Other reasons include missing payments, spending more than you can afford, not having a financial cushion to fall back on and not being disciplined with your money. The article was good at providing some good tips to avoid the debt traps such as only spending what you have in the bank, not spending more than 30% of your credit limit, make your bill payments on time and save for an emergency fund.  

I chose this website as it provides a good overview of the debt issues that Canadians face. Although it was not new information as had been covered in the course, it was easy to understand and follow. ]]> 2020-11-30 19:15:32 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/972991085 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973071719 This article discusses how Canadians have been living off the equity in their homes. As property values have continued to rise, homeowners are able to borrow against their homes and do renovations, take trips, buy things and consolidate debt.  The issue is that the level of debt keeps rising. For many Canadians, the problem with debt started with buying a home that they could not afford. Many feel that buying a home is the right thing to do and by putting down the smallest amount, they were able to buy a house. The problem is that they did not account for all of the costs of homeownership. These homeowners are living pay cheque to pay cheque and relying on interest rates staying low and maintaining their jobs. It is very risky as many are finding out now during this time of crisis.

I chose this article as I had never thought about buying a house as being a problem to manage debt.  I realize now that if you cannot afford a house or it would be tight, that it may be better to wait or maybe being a homeowner is not the only way to build financial security.  It was very sad to read of the story of Ann who now at retirement age has no retirement savings. ]]> 2020-11-30 19:31:44 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973071719 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973472848 This video is about Easy Financial, a lending institution that provides personal loans.  Marketplace went undercover to see how difficult it was to obtain a loan and what the actual cost was of borrowing.  This payday loan business is in the business of making lots of money through high interest rates and fees to those who can least afford it.  The workers were not able to answer all of the questions about the risks of borrowing for the customer. It is easy to see that many of their customers will have difficulty paying back these loans.  

I chose this video because it was Canadian investigation on how this type of payday lending hurts people.  It is surprising to me that there are no regulations on making sure that customers know what their actual costs. There is no plan of how they will be able to afford to pay it back.  ]]> 2020-11-30 21:10:38 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973472848 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973498629 This video is a story about the financial difficulties of an American woman who lost control of her financial situation.  She was managing until her marriage fell apart and then she started into a spiral of credit card spending.  This resulted in her loosing her house and now having to declare bankruptcy.  Of concern was that with no hope of being able to repay the debt that she had, credit card companies were still offering her credit.  It is very difficult to watch as her whole life centred around trying to manage her money.

I chose this video as it really resonated with me.  I went through a period of time that I was using credit to support my living expenses.  I could also relate to buying things in order to try and make myself feel better.  I am now that person selling these things and living at home again in order to pay off my debts.  I am trying to save money so that I can learn to move out without causing financial issues.  ]]> 2020-11-30 21:19:11 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973498629 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973521951 This image is used to represent the weight that so many are feeling by trying to carry too much debt. The cost of managing their finances is creating other problems such as marriage break-downs, health issues and financial losses such as losing their house.   It is like falling into a sinkhole of debt.  

I choose this picture to represent the challenge of having debt. It weighs you down and is hard to get rid of it. It can make you fall even further. ]]> 2020-11-30 21:26:57 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973521951 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973531449 I learned a couple of things from this project on how much debt people are in and how banks take advantage of you. I was surprised how the workers in the Marketplace Video were able to tell all of these lies to innocent people who cannot afford to pay these costs. It was disturbing of how people are being taken advantage. ]]> 2020-11-30 21:30:17 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973531449 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973546580 This image portrays the Payday loan cycle which is impossible for so many people to break. The cost of borrowing makes it impossible for the people that need the money to get ahead.  It only makes sense if you know that you can repay the loan at the end of the two weeks.  The customer becomes dependent on the payday loan as they have used up their paycheque in advance of earning it.  It is a slippery slope that will get worse if something happens such as a job loss or an emergency.  

I choose this image as it provides a good overview of the payday cycle.  It clearly provides a quick view of the cost and how it will become an issue for many if they use these services. ]]> 2020-11-30 21:35:37 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973546580 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973799024 I am interested in this topic as I found myself with credit card debt that I could not repay. The bank pushed me to take the card when I was there. I was a student with a part-time job but the bank gave me $1000 to spend. It was so easy and you don't realize how much you are spending until the statement arrives. Worse, they let me go over so they could charge me fees of $27.00. It was so hard to get out of the debt as I still needed to live plus I had to pay off this card. I cut it up and started putting any amount on it including my Christmas gifts where I asked for money. It was a really hard time. I do not want to get another card but it is almost necessary if want to build my credit. ]]> 2020-11-30 23:31:55 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973799024 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973810225 The most important thing to pass on is to learn to manage your money. You can not live on credit cards and need to find a way to live within your means. My new strategy is to put aside money from each pay to make sure that I have money in case of an emergency. Preparing a budget will help ensure that you know what your income and expenses are. This is the only way to meet your goals. ]]> 2020-11-30 23:38:17 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/973810225 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/977891304 This YouTube video clearly shows the payday debt process.  It is very expensive and addictive for the customer to receive this money.  The Payday company charges such high rates that the customer can not stop their reliance on the company.  The graphics make it easy to understand.  

I chose this video as a way that I would be able to explain the risk of payday loans to family and friends. It is a short effective video on the payday loan cycle. ]]> 2020-12-01 22:22:31 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/977891304 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/977913190 This video from the New York times  is the story of Amy and Robert Ahleman who lost their home as they were not able to pay their mortgage.  These real life stories are ones that the viewer can relate to and really emphasize the risk of high leverage home ownership.  It tells the story of how that they were highly leveraged from the time that they bought their dream house.  Without proper financial advice, they were not able to save any money and when they hit a rough patch, they could no longer afford their home.  It appears that the banks were ready to give them money even when it was a stretch.  However, there was no support when their situation changed.  

I choose this video as the real life stories of people who live through financial crisis is very impactful. It is very scary how easy it is for someone's life to be turned upside down so quickly. It is almost as if once things start to go downhill, there is no one to support you. The banks clearly demonstrate how it is a business to them. ]]> 2020-12-01 22:33:34 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/977913190 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/977919439 This website is sponsored by a debt solution company.  Although it makes me cautious as I read their suggestions, they provide good solutions.  The debt traps are as follows:  credit cards with the high fees, late payment fees and cash advance fees; overdraft protection and the high costs for having the service; mortgage refinancing as a ATM machine never allowing the customer to become mortgage free; Payday loans which are expensive credit cards; and car title loans which are secured by your car and provide cash at very high interest rates.

I choose this website as it provided a comprehensive list of all the debt traps out there. It is a minefield for those who are not able to manage their credit well. It clearly becomes a situation where the customer needs to be well educated and read all of the fine print on financial agreements. It is hard to trust financial institutions after doing all of this research.  ]]> 2020-12-01 22:36:36 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/977919439 catherinepeco https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/977921599 This article outlines the debt traps faced by Canadians.  This reputable firm discusses how nearly half of Canadians are in financial trouble.  It says 47% of all Canadians said that they will have less than $200 remaining at the end of the month after covering all expenses.  This is very scary given that interest rates are very low.  Without any savings, how are Canadians going to be able to afford their current lifestyles if interest rates increase or as we go through covid and so many of us are loosing our jobs.  

I chose this article as my brother is facing this situation. He and his partner live paycheque to paycheque as their employment is hourly. If they do not work, they do not get paid. However, his partner is a gymnastics coach and has lost his job due to covid. If the government support is stopped, he has limited options to replace his income. This will be a difficult financial time for them.]]> 2020-12-01 22:37:45 UTC https://padlet.com/catherinepeco/20t80ta2puiur5d5/wish/977921599