Payday Loans

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Ontario's Government Could Have Fixed The Payday Loan Industry

Obviously we should all do our best to live within our means and pay off our other debt, but if you have lost your job, or had a medical issue, or have gone through a divorce you may have more debt than you can handle, which is why an increasing number of Canadians are turning to solutions like a consumer proposal. What should the Ontario government have done to help address the specific problem of payday loans?
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Why We'll Never Be Free Of Payday Lenders

A list of the terms our society uses to describe payday lenders almost tells you everything you need to know. It reads a bit like a description of a B-grade horror film: predators, thieves, vampires, slave-drivers, or (my favourite) rapacious usurers. But if they're so awful, why are they everywhere? Why is it that, despite a seemingly universal hatred for them, they have popped up like mushrooms in cities across Canada?

High Risk Credit Products Lead to Insolvency

Consumers who file insolvency are in severe financial distress, but surprisingly this does not mean they are behind on their payments. According to Equifax Canada, about 70 per cent of consumer accounts are paid as agreed at the time the individual files for bankruptcy, and this is definitely consistent with what we see every day. More debtors are turning to subprime debt as a way of balancing payments. While any one payday loan, high cost instalment loan or low credit car loan will not necessarily lead to bankruptcy, it does begin a slippery slope and these loans are a primary indicator of an increasing percentage of insolvencies.
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Let's Get as Angry About Political Wrongdoings as We Do About Political Correctness

Why hasn't my Facebook feed filled with at least the same level of indignation about our government's disgraceful treatment of our Veterans as it was about the a tobogganing hill? We must learn to calibrate our anger so it's proportional to the injustice or slight. Let's fight for the things that make life fun for us like tobogganing while also fighting the things that make life miserable such as payday loan companies, multinational corporations, venture capitalists, a failed War on Terrorism and the self-serving hacks in the media and government who enable it all.
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The Problem With Payday Loans

I've heard the sales pitch: rent is due tomorrow but payday is a week away, so get a payday loan now! It only costs $21 on $100! Twenty-one dollars on $100, on a two-week loan, averages out to an annual interest rate of well over 500 per cent! Do you really want to pay the loan back five times every year?

What Really Makes a "High Interest" Loan

While the concerns regarding the potential negative impact of certain high interest loans are legitimate, the debate has failed to consider the context in which high interest loans exist. It is too simple to label a loan "high interest" by looking only at the annualized interest rate. There are many other factors that determine the true cost of borrowing.