Payday Loans Toronto – First Choice for Dangerous Debts
When we decided to write this series on dangerous debts in Toronto – the first choice on everyone’s list was payday loans.
Every day we work with good people, throughout the Greater Toronto Area, who have gotten caught in the payday loan trap. Sinking further and further into debt as they pay exorbitant interest and fees on short term loans.
When we show people how much they are paying for the convenience of a payday loan – they are horrified and more than a little embarrassed at their poor judgement. But at the time they got the loans, they felt they had no other choice.
As of 2009 in Ontario, the maximum that a payday loan company can charge on a loan is $21 per every $100 loaned out on a single loan short term loan usually for up to a maximum of 14 days. On a 14 day loan that works out to an annual rate of 547.5%.
547.5%
Payday Loan Rollovers
In 2009, the Ontario Payday Loan Bill of Rights, put a stop to the practice of rollovers, where a payday loan company would roll an outstanding balance into a new loan.
This new law was enacted to protect consumers – and is a good law, however we are now seeing people coming in with 8, 9 and the record so far, 14 payday loans all with different payday loan companies.
Imagine getting collection calls from 14 different payday loan companies.
The Payday Loan Trap
Once people have started using payday loans, it gets harder and harder to get out of debt. A good portion of their next paycheque will be going to pay off these loans – pushing them further and further into to debt.
Say More Than NO to Payday Loans
It takes more than just saying you will not use payday loans – it takes getting control of your finances, using effective budgeting and building an emergency fund.
Take control of your finances before you are caught in the Payday Loan Trap.
Too Late?
If you are already trapped in the payday loan spiral, don’t believe you can get out, and live in the Greater Toronto Area – give us a call. At David Sklar & Associates, Inc, we offer a free consultation to people who are dealing with overwhelming debt and need a fresh start. Call 416-498-9200 to book your free consultation at one of our six convenient GTA offices.
