PayDay Speed Debt Help How to Get off the Paydayspeed Cycle
Table of Contents Frequency of PaydaySpeed Loans
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The True Cost of A PaydaySpeed Loan
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PaydaySpeed Loan Regulations
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Know Your Rights
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Alternatives to PaydaySpeed Loans
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Get Help - Debt Relief Options
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Frequency of PaydaySpeed • 7-10% of Canadians rely on payday Speed loans to make ends meet • 52% are likely to use cheque-cashing or paydayspeed loan companies more than once a year • 12% use these services monthly • 10% do so more than once a month
Frequent use of paydayspeed loans, including paydayspeed loan rollovers, is a primary indicator of debt problems.
The True Cost of a PaydaySpeed • In Ontario, paydayspeed loan costs are limited by law to $21 for every $100 borrowed. • If you do not pay your loan on time, extra interest can be charged on top of the above fee. • Interest rates on unpaid paydayspeed loans are often as high as 60% per year.
PaydaySpeed loans are a very expensive borrowing option.
Paydayspeed Regulations • The Criminal Code of Canada limits interest to 60% per year. • Most provinces have created specific regulation to limit paydayspeed loans. • In Ontario, payday lenders are licensed by the Ontario Ministry of Consumer Services. You should never borrow from an unlicensed payday lender. • Regulations are governed by the Ontario Payday Loans Act.
Know Your Rights • Ontario law limits the maximum cost for borrowing at $21 for every $100 borrowed. • “Rollovers” are prohibited in Ontario. You cannot take out a paydayspeed loan with the same lender until your first loan is paid in full. • You have two days to cancel your paydayspeed loan without penalty – considered a cooling off period.
Know Your Rights – Cont’d • You must be told, in writing, the amount borrowed, length of the loan, total cost including fees and charges, and the exact due date. • You must receive the full amount borrowed up front, without deductions. • You cannot be required to repay an amount of the loan before the due date
Alternatives to PaydaySpeed • Credit cards are a less expensive borrowing option even at 36% and are more flexible. • Build an emergency fund so you can reduce your reliance on paydayspeed loans. • Overdraft protection is another cheaper option with rates usually around 21%. • Try other lending options like a small loan, line of credit or family and friends.
Most importantly create and maintain a budget.
Get Help Breaking The Cycle If you are trapped in a cycle of payday loan and other debt, consider these debt relief options. • Paydayspeed loans are discharged by filing bankruptcy. • Payday speed lenders will not participate in a voluntary debt management plan. • They are however automatically included and eliminated in a consumer proposal.
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