High Interest Installment loans
You may have heard of these loans a bit more lately in the news, they are a little different than PayDay loans. With Installment loans, these are high interest subprime loans, and unlike PayDay loans, they are not capped at 21%.
With Installment loans, these are quick approval loans, with an apr of 46.96% and they allow you to borrow at much larger amounts than payday loans and with up to three years to pay back the amount.
PayDay Loans
With payday loans, the interest rate in Ontario with these loans cannot go above 21%, and with a payday loan, you typically pay the full amount of the loan back on your next payday.
Credit Cards
Standard credit card rates in Canada with some of the top financial companies tends to be around 19.99% for purchases, and 22.99% for Cash Advances. Any interest rate charged over 60% per annum is considered criminal.
Aimed at People with Bad Debts & Poor Credit
Unfortunately, both payday and installment loans are aimed at the people who tend to have poor credit and bad debts. These style of loans can often at times get some people stuck in a slippery slope of debt.
Optional Insurance
Another consideration with installment loans is the optional loan insurance. Loan insurance payments are not included within the actual interest calculations. With the already high interest rate, the added loan insurance makes these types of loans very expensive in the long run. Always know exactly what you are signing, read all the fine print, know all the fees included.
If you are in a predicament where you are in financial distress and not sure what to do, call our offices for a free initial consultation. We can help sort out your financial situation and help provide an alternate solution that will work with you. Help is just a phone call away!
