Payday lenders seem to be popping up everywhere in SW Ontario, which shouldn’t be surprising since Canadians’ use of high-interest payday loans has recently doubled to include four percent of Canadian households, as stated in this article from the Financial Post.
I can’t emphasize enough that payday loans should never be an option as it’s nearly impossible to get out of the cycle of payday loans. It is important that debtors exercise all options before even considering taking out a payday loan. With that being said, I understand that when someone is drowning in debt, they may think that getting a payday loan will be able to give them a bit of air, even if only for a short time. I can sympathize with these people, but I would also encourage them to consider a consumer proposal or bankruptcy instead. Consumer proposals and bankruptcy are long-term fixes and won’t just give you “air” for a short period of time, but they will allow you to get back on your feet and leave your debt behind.
People who take out payday loans often time feel trapped and end up getting further into debt. The payday loan trap is a simple concept. You borrow from one payday lender for an emergency and suddenly find yourself at another payday lender trying to pay out your first payday lender; and suddenly, after fees, interest, and other charges, you owe several payday lenders and are trapped.
If you are struggling with debt, before considering a payday loan, contact us for a free consultation. We can review all of your options with you so you can avoid getting caught in a payday loan trap.
