The Dangers of Installment Loans

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!

Share This!

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on pinterest
5.0
Based on 666 reviews
Best thing I ever did! Don't let the messaging out there convince you being unable to manage your debt is shameful and a failing. Cori is amazing! She knows what she's talking about and she will guide through all your options. Everyone I've dealt with at David Sklar has been respectful and friendly. This was life changing help for me.
F Volpe
05:07 11 Jan 21
Cori, she’s very helpful and patient. She treated me with respect. She took so much time to explain to me what’s the best way to resolve my financial problem and teach me how i can save to avoid thesame problem again. Cori thank you so much.
Maria G.
19:07 03 Jan 21
I highly recommend David Sklar & Associates, especially Rhoda Lewis, she listened with patience, understood my whole situation, advised professionally, she has many years of experience and is very knowledgeable, I felt confident with her work, she handled my case and guided me every step of the way, she reviewed with me in detail, and is very caring. I really trust David Sklar’s team, they really work and help people in a very simple and professional way. I am so grateful for Rhoda’s work helping me through this situation. Now it is like I received a 2nd chance to live free, I can take control and now take care of other things that matter in my life. Thanks for taking away the stress & weight I was carrying on my shoulders. I can now sleep at night. God Bless you for all your work. Thank you.
Nilda H.
23:34 21 Dec 20
The staff at David Sklar are professional, respectful and honest right from my first phone call. It made a really embarrassing and difficult situation easier to handle. Now I'm on the way to rebuilding my life for my family.Thank you to the team and especially Ashley from the Brampton location.
J H
21:14 12 Dec 20
Ashley Carter was great and helpful. Answered every and each questions in detail and politely. Thanks
Omair pasha
17:32 11 Dec 20
I'm am very pleased that I contacted David Sklar & Assoc. I dealt with Rhoda Lewis, she was very professional and understood my need for their services. Rhoda set up a repayment plan, that was very easy to follow and made everyone satisfied.Going to David Sklar & Assoc. Was the best choice, to make for rebuilding my credit. I recommend David Sklar & Assoc. to anyone who needs help with debt relief.
L. M.
15:29 10 Dec 20
From consult to resolution the service was highly professional. I felt heard and understood. There was no judgement. Jackie always responded to my questions in a timely manner. Most of all, Jackie went all out to see that I got the best care and advise she could find.
evangia cawley
17:51 09 Dec 20
So grateful to the whole team at Sklar for the opportunity to start fresh after a very difficult time of job loss. They went the extra mile for me and have been stellar! J
Jackie
16:20 09 Dec 20
David Sklar and Associates is an outstanding firm. Jackie Stanley is an excellent, professional and warm trustee. Thank you Jackie.
Lioudmila Riagouzova
15:28 09 Dec 20
Ashley Carter was ver professional and understanding. Clearly she assisted in the best way to deal with our issues and executed them very efficiently.
David Gnesin
14:48 08 Dec 20