We get it, life can be unpredictable, and no one can really budget for all possible emergencies. Your car breaks down, your house is in need of urgent repair, or maybe you just need a new suit because you got called for that dream job interview.
In Ontario, the payday lender marketplace is a crowded one. There are banners and stores everywhere, promising you cash within minutes, and $300 will only cost you $21! Sounds like a good deal, right?
Not really. Paying $63 for a $300 loan payday for a privilege to use the money for 14 days equals a whopping 548% on an annual basis. But wait, there is more.
Unpredictable expenses are just that: unpredictable. Many people who take out payday loans have trouble coming up with a full amount plus interest. It is prohibited to reloan existing payday loans in Canada or take a back to back loan. So what does this person do? Well, he wants to preserve his credit, so he goes to another similar lender, takes out another loan, incurs another interest charge and a vicious cycle begins. Two weeks pass, and now he has to come up with even more money.
It is estimated that over 60% of people who borrow from payday stores have several loans outstanding at the same time.
So what is the solution? How do you get out of debt and end this never ending cycle of compounding interest charges?
Here at Loan Away we believe in responsible lending. We need to make sure that whenever we give somebody a loan we want to ensure that the person can actually afford it and that the loan will serve the purpose for that person as well.
Imagine you have 3 or 4 loans payday outstanding, totaling $2000. That means that you would somehow need to come up with $2420 in 14 days!! How many people can do that?
At Loan Away we believe in second chances. We look at your situation. And approve online payday loans for a lot of people with bad credit. Our Canadian online payday loans are up to $5000, usually over 24 or 36 months, and we are nearly 20 times cheaper than payday loans! Which means if you are that person with 3 or 4 loans, you can repay as little as $50 every 2 weeks. Now that you can afford.