Payday Loan Debt in Saskatoon, SK
If you need to access money fast in Saskatoon, it can seem like your options are limited at best.
This is why many people are going to turn their attention to payday loans.
Particularly, if they already have a history of bad credit.
Payday loans can seem like a fantastic opportunity because of how easy it is to access the money that you need.
However, they cause far more problems than they are worth.
Let’s explore some of the issues that you can run into with a payday loan.
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What Are Payday Loans?
Payday loans are basically another term for short term loans.
Due to this, they are structured to be paid back quite quickly.
Typically, it is expected that you will use a loan like this to cover costs that don’t fit into your typical monthly payment.
The lender then expects you to pay the loan back with the following paycheck.
Payday loans are also usually accessible to those with a low credit rating.
This is due to the fact that they have a high level of interest which brings greater risk.
Indeed, the interest rate can be upwards of 600% from some lenders.
There have been several attempts to regulate and rein in this industry.
However, the results have been limited at best.
How Do Payday Loans Hurt You?
Why are payday loans so dangerous?
Well, while in theory they are designed to be paid back fast, many people would argue that they’re not designed to be repayable at all.
As already mentioned payday loans tend to have massive interest rates attached.
Particularly, if you fail to repay the cost before the original period ends.
This can leave you in a debt cycle where the only way to cover the cost of the payday loan is to borrow more money, pushing you further into debt.
As well as this, Saskatoon payday loans also tend to come with hidden additional costs too.
For instance, you might find that there is a fee for paying back to the loan early as well as late.
You might also find that there are administration fees as well.
Particularly, if you are using a payday loan broker to source your loan.
They can demand additional fees that you are simply not prepared for.
Of course, the main impact is always going to be the long term effect of the payday loan.
It’s fair to say that many people end up in debt because they borrowed a payday loan just one time.
This can be more than enough to cripple you financially.
What Damage Can Payday Loans Cause?
Usually, when you are exploring payday loan options, you will already have issues with money.
Unfortunately, a payday loan can make any problems that you are currently facing significantly worse.
It can deepen existing debt and ensure that you are stuck constantly borrowing money that you can’t afford.
Eventually, your debt will become insurmountable and that’s not all.
Failing to pay back a payday loan on time will damage your credit rating.
This can impact your future potential borrowing and various other elements of your life.
For instance, if you have poor credit, you will struggle to get a good deal on a mortgage and you may even be rejected when exploring places to rent.
Recovering From A Poor Payday Loan Experience
Are you already struggling with the impact of a payday loan?
You’re not alone and there are options available to you that will help you break free from this situation.
For instance, you might want to try credit counselling.
Credit counselling involves setting up a plan to ensure that your debt becomes far easier to pay off.
You can also avoid nightmare situations including calls from collection agencies.
A key benefit of counselling is that you will be able to manage your budget more effectively and even start saving money.
This is going to ensure that you don’t end up in this situation in the future.
Instead, you can ensure that you will be able to rely on savings to break free from difficult financial situations.
You can also consider a payday loan consolidation.
This will be useful if you have multiple payday loan payments hanging over your head.
With a loan consolidation, you can group all of these together making them easier to handle.
You can also usually benefit from a greatly reduced interest rate.
As such, you won’t have to worry about the interest rate on your debts growing any further beyond your control.
There are of course other options beyond both debt consolidation and counselling for you to explore.
For instance, you can look into a consumer proposal.
Here, you will present an offer to the creditors that you owe money to.
If the majority then accepts this offer, you can ensure that the amount you pay back is significantly less.
You will however need to make sure that you can afford the terms of your offer and that you will be able to repay the money owed on time.
You may also wish to think about bankruptcy.
This is the very last step that you should consider but it can be of benefit in certain situations.
Contrary to belief bankruptcy in Saskatoon will not leave you with nothing.
You will be able to maintain control of some of your assets and could even keep your home in some cases.
If you are looking for more assistance regarding alternatives to payday loans in Saskatoon or potentially debt relief we can help.
Contact one of our experts and they will be able to provide you with advice on how to escape debt the right way or borrow when you are in need.
We have helped more than 100,000 Canadians with their debt issues and we’re confident that we can help you too.
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?