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One part of the financial industry to stay away from are payday lenders they charge up to 300 percent interest on short term loans and your never ahead and they make your life very miserable. Most payday lenders are located in low and moderate income parts of citis and towns. Plus rent to own joints you can buy three times the product.
i believe that the amount the can charge interest has just recently been regulated, i was told this by a family member recently who got caught up in using them
There are several cases where the interest debt is much more than the actual amount advanced, so paying the compounded interest portion can be very painfull.
Pay day loans are like a net, once you are in - you tend to stay in.
Never use them - no matter what.
Go to a bank & the banking representative should be able to help you.
I agree - I would pretty much try to sell a kidney before I used one. It's a very slippery slope.
They're a bad idea no matter how you look at it, and seem to exist mostly to take advantage of people falling on hard times.
So you get a loan because you don't have enough cash to get through till payday. On payday, you have to pay back your loan, plus interest. How much do you want to bet that you're gonig to be short again this week, only MORE because you had to pay that interest? Before long, they get all your paycheque and you're in a deep hole.
Z
I agree Manitoba passed a law caping the interest on these lenders and don't exist in Quebec due to their usuary laws. Plus their is a class action suit against money mart
www.moneymartclassaction.com
I would advise - Get a personal loan of any kind from a financial institution, & use that proceeds instead of using Payday Loan sharks.
May be an RRSP loan, then contribute towards an RRSP. After couple of days redeem the RRSP proceeds & use this money. Its only possible because RRSP accounts cannot be held collateral against any debt. This way you have an RRSP loan, but you also have the cash in hand.
Chances are - people who use Payday loan may not qualify for an RRSP loan (but How does one know, if they do not try?).
Explore all possible options, before going to the shark (once you go there - Thats the begining of THE END).
People with reasonable credit (we may be able to help)
[email protected]
Financial Advisor @ FundEX Investments Inc.
i agree.. but in some cases there is no other options.. i dont think anybody really WANTS to use a payday loan place.. but.. if you dont have family around to help..bad credit.. (bank wont issue a loan with bad credit?) and no money.. its a last resort if you need some instant cash... what else can you do really?
as for rent to owns. there ok if you know you wont be late on payments.. the late charges are awfull.. but its alot easier to pay double for something.. a couple bucks a week.. then forkin out 1500 all at once... some people may find it more practical. and again.. they dont do credit checks so basically anybody can qualify as long as you have an income(even ontario works.)
Thats the state of our economy. Money makes. Those who are broke - its really difficult to manage. That's the main reason - (In Financial planning - We always say) -
PLAN FOR THE WORST & HOPE IT NEVER HAPPENS. because once it happens, then its too late to plan.
ash
On the other hand, putting aside those few extra bucks BEFORE you buy would save you piles of cash.Quote:
Originally Posted by orv
Z
Ugh, I would never step into one of those places, and I absolutely HATE when you get their junk mail telling you you've been "Approved" for a loan, even though you've never been there before. Seems they mass produce these flyers and distrubute them to everyone to get them through their doors and get a loan, and then it's a vicious circle. As for "rent to own" places... I wouldn't use them either. Seems as though they figure trying to give you things for "free" or nearly free right off the bat, and then getting you on the interest is the easy way of doing business...Thanks, but no thanks!
Interest rates are the lowest in history. This is the best time to borrow as much as you can & keep it for emergency (or probably invest in the high growth fund where the gains will be tax free), when times are tough then one manage on their own.
Any borrowing is not possible - when times are tough.
Except when you're low income, on parental leave, or starting a new job and are on new hire probation...Quote:
Originally Posted by ashedfc
Just sayin'... :yikes:
Borrowing can be a smaller amount (every penny matter's) like-
1. Overdraft protection on your cheqing account.
2. Unsecured line of credit (interest only repayment).
3. Secured line of credit (with interest only repayment against home equity or any other asset like car)
4. Personal loan with interest & principal repayment.
5. Business loan (personal or corporation).
6. RRSP loan.
7. Investment loan.
There are several options - its all about planning & getting thins ready when the credit score is good, because once credit score becomes bad (for whatever reason), it takes a long time to repair it.
We come across lot of cases, where everything was going fine till ................. so & so & now I am in trouble, please help me?
[email protected]
Financial Advisor @ FundEX Invetments Inc.
Well like I said in my previous post, there are some circumstances where borrower's feel as though people won't pay their debt, so they decide to not lend money out for any reason...
You can try and justify your company by quoting whatever you want, but as a new mother who just got off parently leave and started a new job because we moved and I had to quit the other one, I know for a fact no banks, lenders, or whatever will lend to me because of it...My name isn't even on our brand new car loan because I was on maternity leave when we got it, therefore unemployed and they wouldn't allow me to get a credit check for it.