Avoiding Payday Loans

Payday Loan Facts

One of the strongest financial danger signs is the repeated use of Payday Loans.

While we sympathize with the desperation that can lead people into taking out Payday Loans, we want to make it very clear how poor a credit choice Payday Loans are.

What are Payday Loans?

Sometimes called Cheque Cashing Services – Payday Loans are short-term, unsecured loans that usually require the borrower to give the lender a post-dated cheque or a pre-authorized debit to cover the loan and the fees/interest charged on the loan. Loans are usually for 1 to 14 days in length.

Under the Ontario Government’s Payday Loans Bill of Rights, the Payday Loan industry can charge up to a maxim of maximum of $21 (fees plus interest) for each $100 that a consumer borrows. Payday loans are for periods of up to 14 days, which means that the annual cost of borrowing $200 (14 days x 26) would be $1096 – equal to 546% per year!

Scary News from Statistics Canada

According to Statistics Canada* in 2005 – 353,300 families reported taking out a Payday Loan in the previous three years.

This truly frightening statistic indicates there are many Canadians who are desperate for cash at any cost and many who do not understand how poor a credit choice they are making.

Avoiding Payday Loans

Part of avoiding Payday Loans, is to get your finances under control. The most effective ways to do that is to set up a realistic budget, build up an emergency fund, and stick to it.

Check out our free series on how to set up a budget. It will help you get started on your way to financial stability.

Knowing the true costs of Payday Loans – may be one of the best incentives for getting your finances under control.

Trapped in Payday Loans?

If you are trapped in the Payday Loan cycle, can’t see a way out, and live in the GTA – it might be time to speak to one of the Licensed Debt Professionals™ at David Sklar & Associates. We offer a free initial consultation where we will review your current financial situation and explore all of your debt-removal options. Call 416-498-9200 to book your free consultation at one of our six GTA offices.

* Statistics Canada – http://www.statcan.gc.ca/pub/75-001-x/10407/9617-eng.htm

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
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20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
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01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
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17:02 11 Nov 21
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Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
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18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
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07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
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