No Money, Mo Problem Loans (Pay Day Loans)

One of the great frustrations of life is never ending debt and when you’re living paycheck to paycheck you’ve likely heard of payday loans. There are many names for them: payday loans, cash advance loans, check advance loans, deferred deposit loans or post-dated check loans — and you can get them from a variety of sources.

They’re a short-term, high-interest loan created to help people who are immediate need of cash between paychecks.You should use caution when seeking this type of credit.

If you have them already and want out, click here for affordable repayment options

The Circle of Debt

Here’s a short clip from comedian John Oliver on what it’s about. It is an American show but the explanation remains the same.

Payday loans are expensive. At a rate of $17 per $100 borrowed may not seem like much, however, if you can’t afford to pay back the full amount at the end of your term you’ll be on the hook for a lot more. People who typically can’t pay back after the first loan need to borrow again and again until they can pay back what they’ve borrowed plus interest. At the end of the year, this can come up to more than APR 440% interest. You might wonder about APR. Basically, Annual Percentage Rate means the amount of yearly interest you’d end up owing if you didn’t pay back in full on time. 

Know Your Rights Around Debt Collection
Sometimes people may not be able to pay back their loan on time and the payday lender will attempt to collect the money. All companies that collect a debt from a BC resident must follow the BC debt collection laws. Often despite paying off a portion of the debt, it only covers a small amount of what you owe. In these case, it’s best to look at other options beyond payday loans

  • Negotiate a payment plan with the creditor
  • Charge the amount to your credit card
  • Receive an advance from your employer
  • Use your bank’s overdraft protections
  • Obtain a line of credit from an FDIC-approved lender
  • Borrow money from your savings account
  • Ask a relative to lend you the money
  • Apply for a traditional small loan
  • Ask your creditor for more time to pay a bill
  • Use a cash advance on your credit card

Hopefully, you’ll be able to make an informed choice after reading this. All the best!

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