Payday Loan Debt in Hamilton, ON
If you’re struggling to pay the bills, put food on the table, or pay for the essential items you or your family needs, you might be tempted to turn to a Hamilton payday loan company.
With fast access to cash, you will then have the opportunity to pay for the things you need.
HOWEVER: You need to know that payday loans can be dangerous, and you might regret your decision when you later realize you cannot pay back what is owed.
Why Are Payday Loans Dangerous?
People with poor credit or who need cash in an emergency will often take up the offer of a payday loan.
Such a loan is an easy way out of a difficult situation.
However, there are disadvantages to taking out a payday loan.
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The high level of interest
Payday loans come with high-interest rates, and for people already struggling to survive financially, these are only going to make their situation worse.
Payday lenders often charge upwards of 500% interest on their loans, which means the recipient is going to have to pay back a lot more than they can realistically afford.
Payday loans create a cycle of debt
People take out a payday loan because they need help fast.
That’s fine, but because it’s common for loan recipients to struggle to pay off the debt at the time requested, they are then forced to take out another loan to pay off the loan they are currently struggling to pay.
What happens then?
Well, they have yet more interest to pay and have little scope to pay off either loan.
They might then reach out to another payday loan company and so the cycle of debt continues.
Payday loans create feelings of stress
Not only do recipients have the stress of trying to pay back the payday loans they have acquired, but they also have the stress that comes when threatening letters or emails come from the lender putting pressure on them to pay the money back.
If that money isn’t paid back, further stress is caused when the recipient is issued with a court judgement.
Needless to say, mental health issues are commonplace amongst those who have taken out a payday loan.
What If I Can’t Pay Back My Payday Loan?
If you are struggling to pay back your payday loan in Hamilton, there are options open to you.
All hope isn’t lost, so don’t assume your cycle of debt has to continue forevermore.
Know the law
Under Canadian law, payday lenders must offer you an extended payment plan if you took out three payday loans within a 63-day period.
This will take the pressure off you a little.
And under the Payday Loan Act, you can’t be charged more than $15 for every $100 that you borrow.
There are other rules and regulations around payday loans that are worth knowing too, so check the following article to find out more about your rights.
It might be that the company you have used has broken the law, so you will have the right to complain if so.
While there is no guarantee your loan will be written off, you might still have some breathing space to pay back your loan.
Contact debt relief services
If you can’t manage the debt associated with a payday loan, you should seek help as soon as possible.
When you speak to one of our Licensed Insolvency Trustees In Hamilton, you will be given advice on the solutions open to you.
A trustee will consider your financial position, talk to you about the way forward, and suggest the option that might be right for you.
These can include:
- A Debt Management Program: The Trustee will negotiate a new repayment plan with your creditor at a lower interest than what you might already be paying. Most creditors accept the lower rate as it means they will still get some money back from you.
- A Consumer Proposal: This is a debt repayment solution that gives you the chance to consolidate your debts. Governed by the Bankruptcy and Insolvency Act, it is a legal agreement between you and your creditors to repay a portion of the debts you owe. One of our Trustees will guide you through the process and will try to come to a reasonable arrangement between you and your creditors.
- Bankruptcy: If there is no other hope of repaying your debts, then filing for bankruptcy could be the right thing to do. One of our Hamilton Trustees will talk you through the process and will explore this option with you if no other solutions can be found. While some consider bankruptcy to be the last resort, it is important to know that most unsecured debts will be eliminated this way, and you will be given a fresh financial start.
You have probably heard of these options before, but if you know little about what is involved with each, speak to a Hamilton Licensed Insolvency Trustee.
We will help you figure out which solution is best for your particular situation, and will answer any questions you might have.
With our support, you won’t have to manage your debt alone, and we will do what it takes to get you out of debt and onto the road marked ‘financial freedom.’
Debt Relief In Hamilton
If you have taken out a payday loan in Hamilton, or if you have any other kind of debt weighing you down, don’t suffer alone.
There are solutions available, so don’t delay finding help.
Our Trustees are licensed, regulated, and insured, so you can be assured that you will be in the safest of hands.
By contacting a Hamilton Insolvency Trustee you will receive all the information you need to escape your debt problem.
Start your journey on the path towards financial freedom today.
If you’re in Hamilton or based in any of the surrounding areas, give us a call at (877) 879-4770 or fill out our contact form, and arrange an appointment with one of our Trustees for the professional help that will steer you out of debt.
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?
Canadian Bankruptcies
How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
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?
