Canadian Money Advisor 2005

Helping Canadians Understand Their Money & Personal Finance since 2005

Original Post Subject:
how to better manage your payday loan

Fields with * are required
Your Comments Below:
* Name
* Email
* Code:
Enter Above Code:
NOTE: Comments are moderated - Spam will be deleted

No Comments Yet - Please Post a comment

How to Better Manage Your Payday Loan

Latest government statistics have shown that the number of payday loan requests has increased 109 percent in the past two years alone. But the figure is expected rise in the coming months, experts predicted.

Due to this upsurge in demand for such services, numerous lenders are appearing to cater to those in need; however, this convenience comes at a price to consumers.

Unavoidable need and sparse regulations among the payday lending industry have paved the way for exorbitant fees and interest rates, often creating more hardships for those acquiring such loans than were present before.

A Website Showing Comparisons on Loan Providers
In an effort to help reduce the burden on those seeking loans, Which Way To Pay Canada has launched their website dedicated to providing comparisons on loan providers and other financial services, allowing consumers to easily find the most affordable options available.

Mark Maffia of Which Way To Pay Canada confirmed, "We see new payday lenders springing up constantly. The way these payday loans, sometimes called cash advances, work is consumers borrow between $100 and $1,000 dollars. They are required to pay the entire amount they borrow, plus interest, back at the time of their next payday. Of course, if the client is unable to pay back the loan at the agreed upon time, extensions are granted, extra fees are added and interest continues to add up."

Why Payday Lenders are Attractive
Though fees and interest rates tend to be much higher with this type of loan, the public still gravitates toward them for a number of reasons. Payday lenders typically do not require credit checks whereas banks and credit unions do. Traditional lenders are inconvenient to those in need of quick cash because approval may take several days; cash advances are often available within 24 hours. Those with low credit scores in dire need of cash have few options and no means of quickly comparing rates among lenders.

Why Not Sub-Prime Loan?
"Those who are looking for other options may want to consider a sub-prime loan," continued Maffia, "Given the current state of the economy and the fact that so many have experienced financial difficulties, an increasing number of specialist lenders are providing loans for people with bad credit. These lenders offer varying terms and conditions, but consumers can borrow amounts ranging from $80 to thousands of dollars. Our website displays a number of bad credit lenders, the amounts they are willing to lend, interest rates, terms and other relevant information."
Canadian Credit Cards