Recently a new casino (aka ‘gaming facility’) opened up in my area. Since it’s opening, new payday lending stores have been popping up all around the vicinity. Coincidence? I think not.
Payday loans provide the quick cash that fuels a gambling addiction. When the gambler is losing, they can simply head next door to the payday lender, get some instant cash, and head back to the casino to win back their loan and the rest of the money lost, right?
Do you need relief from payday loans? Many people like you get caught in what’s known as the “payday loan cycle”, a ‘borrowing from Peter to pay Paul’ situation where you are juggling payday loans from multiple lenders, trying to keep all of the balls in the air. The sweat begins to trickle down your forehead because you can’t see when it will end, and if you stumble, all the balls will come crashing down, leading to collection calls and wage garnishment. The problem is you don’t know where to turn, and you don’t have the money to pay back everyone on top of your regular costs of living.
Last week, Vancity (one of the top credit unions in BC) introduced a new product called the Vancity Fair and Fast Loan.
Here’s the good news: it’s a lot cheaper than payday loans. As reported by Kevin Griffin in the Vancouver Sun, “If a credit union member borrows $300 for minimum term of two months and pays it off in two weeks, it would cost $2.20, a 19 per cent annual percentage rate.” Whereas a payday loan from the Cash Store for $300 (with a 14 day term) would cost $69, which is 23% interest on the principal and equates to an annual interest rate of 599.64%.
And here’s the bad news:
We get a lot of great debt questions from our readers. In this post we’re going to share some of the best and most common debt questions we receive, along with our answers, so read on to find out what everyone wants to know!
Yesterday the boiling hot news of the day was a 25% interest bearing car loan to a BC couple. The story involved the TD bank and a family that had gone bankrupt recently. It raises a number of troublesome questions.
We look at the real cost of payday loans – how they compare to the cost of other forms of credit, both in the short term and long term, as well as compare the varying cost across Canada. We also look at some intersting stats which reflect on the payday loan cycle, in this eye-opening infographic and blog article. If you are struggling to repay a payday loan, or are trapped in a payday loan cycle, contact SolutionsTM for help with your payday loan debt today.
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