Payday Loan Debt in Fort McMurray, AB
In a bid to try and prevent local people from developing unmanageable debt problems, Alberta has introduced strict regulations governing payday loans.
Despite these attempts, a significant number of people still require payday loan help in Fort McMurray.
Although stricter regulation has been welcomed, many believe that the payday loan industry, as a whole, is still able to charge extortionate fees and exceptionally high interest rates.
Certainly, the fees associated with payday loans are considerably higher than the interest rates and charges applicable to ‘standard, everyday loans and credit cards’.
Due to this, people with payday loans can quickly experience financial issues and debt management.
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Why are Payday Loans Bad?
Payday loans can be a fast-track way to get into money troubles.
Even with Alberta’s cap on the charges payday lenders can enforce, it still costs far more to obtain a payday loan than it does to access other forms of credit.
Currently, regulations in the province define a payday loan as a loan of less than $1,500 and state that it must last for at least 42-62 days.
Furthermore, according to Alberta’s payday loan restrictions, companies cannot charge more than $15 per $100 you borrow.
However, these regulations mean that the overall amount owed on a payday loan can quickly increase, which will result in you owing a creditor far more than you borrowed.
If you borrow $200 for 45 days and are charged the maximum amount, for example, this amounts to a charge of $30 per day which, over 45 days, amounts to $1,350.
With such high costs associated with these types of loans, it’s not surprising so many people require payday loan help in Fort McMurray and surrounding areas.
However, the high costs associated with payday loans aren’t the only reason they can be a bad choice of credit.
Payday loans are typically aimed at people who require fast access to cash or funds.
In many cases, lenders will target people who are already struggling to manage their finances.
This usually means that people who are already experiencing debt problems or financial issues will be most likely to take out payday loans.
Of course, this increases the likelihood of them having trouble making repayments and leads to further financial problems.
What’s more, the relatively easy application process associated with payday loans means that people can apply for a payday loan and receive the funds in their bank account within minutes.
The lure of a swift resolution to urgent money issues is, of course, attractive to anyone that is struggling to make ends meet.
When you’re in urgent need of cash, the temptation to overlook the high costs increases and tempts you to make unwise financial decisions.
In short, payday loans are routinely used by people who are already on the verge of unmanageable debt.
In many cases, the availability and use of a payday loan simply worsens a person’s financial standing and makes their debt even harder to manage in the long-term.
Getting Help with Payday Loans
If you’ve taken out payday loans and you’re having trouble paying them back, you’re not alone.
Contacting your lender may enable you to access help in the form of a loan extension but this may simply allow the problems to worsen over time.
If your loan is extended but interest is still added, for example, the total amount you owe will simply increase.
If you’re looking for a better solution to your debt problems, it’s always advisable to talk to an independent professional.
By seeking objective Fort McMurray payday loan help, you can find out exactly what debt solution services are available to you and which options are most suited to your situation.
When you do seek payday loan help in Fort McMurray, however, it’s important to find an objective organization you can trust.
While there are many firms that offer credit counselling, for example, they won’t all necessarily offer the same level of service and support.
With varying levels of regulation applicable to the debt industry, you’ll want to be sure that you seek help from professionals who are strictly regulated and required to act in accordance with specific professional standards.
Where to Access Debt Help
If you’re eager to resolve your debt issues and find a way out of the cycle of payday loans, you may want to talk to a licensed insolvency trustee (LIT).
A LIT is a professional who handles bankruptcy and consumer proposals, so they have the in-depth knowledge and expertise you need when you’re managing debt problems.
They can provide the personalized advice you need in order to determine what type of debt resolution is best for you and your family.
If you do want to move forward and make a consumer proposal or file for bankruptcy, a licensed insolvency trustee will explain the process to you and provide all the information you need.
In addition to this, a LIT is on hand to manage every aspect of the process and ensure that it’s completed in accordance with the appropriate laws and regulations.
Although making a consumer proposal or filing for bankruptcy can sound like a drastic solution, it’s often the most effective way to deal with unmanageable debt.
In the case of bankruptcy, your debts will be eliminated, and you won’t be required to make subsequent repayments, so it can certainly help you to access a fresh start in terms of your finances.
While making a consumer proposal won’t immediately eradicate your debt, it can reduce your debts by up to 75%, which will make them far more manageable.
Furthermore, a consumer proposal can prevent further interest from being added to your debts, which means they won’t increase while you continue to make your payments.
Contact Bankruptcy Canada Now
If you’re experiencing debt problems, why wait any longer to seek assistance?
With payday loan help in Fort McMurray, you can find a permanent resolution to your money troubles and resolve the situation quickly and efficiently.
To learn more, contact Bankruptcy Canada now on (877)879-4770.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
How to File for Bankruptcy
What is Bankruptcy?
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?