Do You Have to Get a Payday Loan to Help You Make Ends Meet?

 

Payday loans are short-term loans approved by privately owned lenders that usually come with exorbitant fees and interest rates, sometimes as high as 500% to 600%. People who are short on cash may seek Payday loans to cover necessities or emergencies, such as property damage, that they could not otherwise afford with their current savings or income.

 In Alberta, you can apply for a loan of up to $1,500 and have 62 days to repay it.

 Payday loans are the most convenient to apply for, and you can usually expect your loan to be disbursed in cash or deposited directly into your bank account the next day. Unlike traditional bank loans, payday lenders, according to payday loans Alberta,

    only have a few requirements before they approve someone for a loan:

 

• You must have a fixed source of earnings.
• A bank account is required.
• You must have a social security number.
• You must give proof of residency in the same province as the lender.

 

You will also need to supply:

 

• A form that authorizes your lender to withdraw the amount owed, plus interest and fees, when the loan is due.
• A post-dated cheque for the loan, including interest and fees.

 

WHO USUALLY APPLIES FOR PAYDAY LOANS?

 Payday loans are divisive in the world of finance. Because they are so simple to obtain, they tend to attract low-income borrowers looking for quick ways to pay their bills. The following demographics are three times more likely to seek a payday loan:

 

• Families with a debt-to-asset ratio greater than 5.0
• Renters
• Single-parent families

 

Parents between the ages of 15 to 24 make up the majority of young families.

 According to Loans Canada, 50% of payday loan users have less than 20% of their net worth, and 80% have less than 40% of their net worth.

Many people who use payday loans end up applying for more payday loans to keep up with the credit card debt Alberta they accumulate, resulting in a debt cycle that can last years or even decades.

 

ARE YOU STRUGGLING WITH DEBT? PLEASE CONTACT US!

 It is never too late to gain financial control. One of the best places for you is Debt Free Alberta! We can provide you with immediate, free, and confidential advice to help you decide on the best solution for you. Our experts will discuss your tax debt and what you owe to other resolved student loans Alberta to paint a picture of your financial situation. We will then perform with you to put a debt solution in place that will allow you to get back on track.