Payday loan alternatives may help you in finding a low-cost fast payday loan in Canada! A payday loan Canada is an unsecured personal loan, also known as a payday advance or a paycheck advance is an exclusive form of a smaller value, shorter term unsecured loan to meet the borrower’s expenses till his or her next payday. It’s an instant form of credit relief, which is built to fill the need of a person with regular income to combat the money shortage problem that can’t exchange with other typical loans available in the financial market in its specific context because most of the other loans require a credit check that makes it delay in providing fast delivery of money for any quick cash requirement. But it has some drawbacks that people usually felt uncomfortable and trying to adopt other payday loan alternatives and options because:
- Higher cost! Although in Canada payday loan charges are protected by most of the provinces and territories regulation, like Ontario provincial maximum fee capped at $21 for every $100 borrowed.
- Short-term loan! Lenders will typically lend money for a period of 1 to 14 days, fees can add up quickly and what started out, as a quick fix can become a financial trap.
According to conclusion made be Federal Reserve Bank of New York, “Payday loans should not be categorized as ‘predatory’ since they may improve household welfare”. Moreover, they further assert that the payday stores extend credit to those ‘risky’ customers who have high chances of default. In words of Laurie Campbell, Executive Director of Credit Canada, “There are other, more affordable and sustainable options for getting help, but when a person needs to put food on the table or pay the rent, they often turn feel they have nowhere else to turn.”
Starting in the 90s, payday loans have become increasingly popular in Canada. Approximately 1,350 stores operate in Canada, with over 700 in Ontario only. What makes it so famous that people want to adopt cheaper alternatives having payday loan characteristics?
- The most important being it’s an easy form of credit that an individual can get a short-term loan from payday lenders.
- A payday loan is available even 7 days a week! Payday lenders tend to stay open late, and they cannot even be found in multiple urban and suburban locations but 24 hours online.
- It’s a fast form of credit that can fill up your bank account with cash within a day.
- There is no credit check required, so there isn’t any question of being a poor or bad credit and the paperwork is quite simple.
If you really in need of a small amount of cash to meet your emergency expenses to fill up the gap, a payday loan may look like a quick solution with an easy way to get it, but it’s not good to rely on payday loans all the time. Always, look at other forms of options before considering a payday loan.
The Social Factor
It’s the most feasible way to get financial help, like you may ask your friends, family and your employer! I don’t want to disclose secrets like most suggestions you will find online in adopting payday loan alternatives “10 Top Payday Loan Options” or “15 Best Payday Loan Alternatives’, but want to suggest to you the most powerful way, not even that brings financial success to you for your day to day problems but a happy and a successful life that only lies with your personal relationship. So always try to help others in need especially when you can do something for them like your employer require more value to your job where your family and friends require your care because these people can help you without asking extra money on your principal amount. It doesn’t require any planning from your side because there is a need to change your behaviour, because today if you help them without anything in return then they will definitely don’t want you alone in your problem, and if you think consideration should be a part of the relationship then you may be able to get a fast cash advance from your employer or borrow the money from your friends or family on better rates than any payday loan lender.
The Planning Factor
This involves a variety of things that include pre-hand knowledge and information, which will not even give you satisfaction to get out from your financial crises but it will bring instant help when you need it most. Like if you don’t already have protected your overdraft on your checking account, find out if your bank will provide you with your overdraft protection. It’s a great way; because you can use your checking account to pay your bills and other emergency expenses without worrying about bounced checks/cheques. You may also try to keep your knowledge up to date while getting reviews and experience of other people in such situations that may help you in planning and getting the best option for you and vice versa when you need it most.
Trouble Getting Existing Loan Payments
If you are taking the payday loan for the purpose of paying off payments on your existing loans you should contact your creditors or loan officer as quickly as possible to tell them about your financial problem and to ask for more time. Many of them may be willing to work with consumers who they believe are acting in good faith. They may offer an extension on your bills so that you can meet your payments; you should also make sure to find out what the charges would be for that service to compare the best possibility to adopt.
Selling Used Things
In a time of emergency when you need cash fast your old books, CDs or else will not bring fast revenue on even eBay because it requires some experience and time to complete the process. Yes, stuff like gold, bonds and other forms of ready to convert cash instruments that have a real value, you may sell instantly in the market at the best price and if you have unused or broken gold or such kind of real value stuff with you it may help you a lot.
Time Consuming Low Cost Payday Loan Alternatives
Getting an unsecured low-cost short-term loan is not difficult but it will take some time because it involves some formalities to fulfill like checking up your credit profile, documentations, or else. Although banks don’t deal with payday loans these can assist you in getting you a short-term loan you are looking for. You may also go with the credit unions or small loan companies available in the market. You may get better rates than payday loans. Moreover, since payday loans are only available to the employees, but you may probably qualify to take other loans as well here. You are suggested to spend some time shopping around to compare rates in getting the most affordable rates for you. Although there are many credit unions that have attempted to offer a similar kind of payday loan in Canada, with lower interest rates, but have been unable to do so without government grants or subsidies.
High Cost Fast Cash Payday Loan Alternatives
Credit card is the fastest payday loan alternative but it’s the most expenses and if you are already trying to find out payday loan alternative because of’s high rates then it seems not feasible to take cash on credit cards and above all credit cards are not build for taking cash but for your purchases and its most feasible form of credit instrument designed for exclusively for merchandising and shopping purposes without carrying cash.
Alternatives to Payday Loans Summary
Summary of payday loan options and how payday loans cost borrowers less? Instead of going through an expensive loan route, like high-cost, high-risk payday loans, look at some payday loan alternatives. Those individuals who don’t qualify for a payday cash advance can still borrow money with even bad credit. Other options are available to most payday loan customers. These include pawnbrokers, credit union loans with lower interest and more stringent terms, paycheck cash advances from employers, credit payment plans, bank overdraft protection, cash advances from credit cards, emergency community assistance plans, small consumer loans, selling valuable items to jewellers like ‘cash for gold’ buyers in order to raise enough money to pay their bills and direct loans from family or friends.
Payday loan lenders don’t compare their interest rates to those of mainstream lenders. Instead, compare their fees to the overdraft, late payment, and penalty fees that will be incurred if the customer is unable to secure any credit what so ever.
Payday lenders, therefore, list a different set of alternatives, costs expressed here as APRs for 14 days (two-week) terms:
- $100 payday advance with $21 fee = 599% APR;
- $100 bounced check with $48 NSF/merchant fees = 1,251% APR;
- $100 credit card balance with $26 late fee = 678% APR;
- $100 utility bill with $50 late/reconnect fees = 1,304% APR.
Low Cost Fast Cash Payday Loan Alternatives
It’s what people are searching for the best kind of payday loan Canada that can take an ideal position to get a hold on the required phrase for payday loan alternatives and options available in the market. According to the desire of borrower, it will be one best because:
- Lower cost! What if you can get it half the rates of the typical payday loan charges.
- Longer-term! What if you get the loan for full 30 days, double the duration of a typical payday loan term.
Yes, you can get a low-cost fast payday loan Canada through MogoMoney, because this company is offering a payday loan alternative providing the same benefits that attract payday loan borrowers like fast and easy cash while eliminating those disturbing factors related to price and shorter-term, although they have used the time factor to adjust the price to go down by half. What they have done with nearly the same loan charges they have extended their unsecured cash advance to full 30 days to payback or go for a re-loan.
Always Make Your Own Decision
You should always make your financial decisions very carefully, examine the reasons why you feel that you need a payday loan in the first place. Is it a real emergency that can cost or let you save more than taking burdens of high-cost charges coming with your payday loans? Are you having trouble managing your personal finance? Are you spending more than your earnings? Take your time and plan your budget in a way in which you can meet all your necessary expenditures but savings too. This way, you’ll be less likely to be in going into any critical financial situation that requires you to take out a payday loan in the first place. Because payday loan companies are not taking advantage of people’s financial hardships in the first place in accordance with the borrowers themselves. Although it’s a fact that low-income borrowers are more likely to be trapped in a ‘debt cycle’ where they have to repeatedly renew the loan and pay charges or fees every two weeks until they pay off the principal amount to get out of this ‘debt cycle’. Statistics compiled by the Centre for Responsible Lending show that the majority of the payday loan industry’s profit comes from repeat borrowers who failed to repay loans on the due date and instead repeatedly renew their loans, end up on paying fees every time. When choosing a lender whether or not to use a payday loan, evaluate all of your alternatives in order to identify the best option available at the time. There are many different companies that provide payday loans in Canada online and offline, so be sure to shop around. Some things to consider when choosing a payday lender are the rates they charge that includes overdue fees and other charges you may incur, compare payday loans results of various lenders and ask them about how quickly your loan will be available and what sort of repayment options they are offering.