Payday credits may seem like a good idea when you have a two-month delay in the electricity bill and your next pay is not going to be enough to cover those bills and those that will come, but once you start with the loans of cash, it is likely that you sink deeper into debt. Advance lenders hunt between low-income families and people who have had financial problems before and are simply trying to get back to normal.
The New York Times recently wrote an article about the problem that cash advances create when people are not able to repay them on time. In the article they explain that “payday loans are often advertised as a short-term push that maintains the electricity service or allows you to stay in college, but borrowers often end up trapped in a spiral of debt.”
Once you take a payday loan this will introduce you into a cycle in which you will have to apply for a new loan
Each time you receive your salary because you will need to repay the previous loan
Generally speaking, payday loans have to be fully repaid on your next payday, which means that you will not only have to pay your monthly bills, but now you will have to pay the full amount of the fast loan plus the interest . Most people end up asking for another payday loan to pay the first and that’s how the cycle begins. Here at Loans Canada we want you to break the cycle of quick loans and start repaying your debts by making all payments on bills on time. The best way to do this is to stop asking for payday loans and instead ask for a personal loan (installment loan).
The New York Times article notes that “about 50% of payday loans evolve to a chain of 10 or more
This is because it is not reasonable to think that someone can repay the loan in a single large payment and, therefore, “one could conclude that the business model of the loan industry depends on people getting involved in the loans. in the long term. ” If you take a personal loan with Loans Canada you will be able to get out of the cycle of the payday loans, because we offer installment loans. This means that you will not be required to return your Loans Canada loan in a single large payment and in a short period of time. Most personal loans are long-term – that is, you can have up to a year or more to repay the loan in smaller, more manageable payments. This is the key to getting out of the cycle of payday loans and re-controlling your finances.
Sometimes, our financial situation can get out of control and we need help, the most important thing for you is to look for it in the right place. Payroll advances are not the answer and will only increase your debt and stress. Instead, ask for a personal loan with Loans Canada where you will be able to make installment payments and have the time you need to get your finances back on track.