For those of you not in Canada, it is a Holiday today (the first long weekend in Ontario since Easter), the financial markets are closed and all banking from the weekend will be post dated to tomorrow.
“Pay Day Loans”. Let’s just natter about that for a second. My understanding of these places is they will “loan” you money until pay day, and you give them a post dated cheque with interest on it for your pay day. In Canada, these places are charging over 20% interest for this “right” (along with set up fees and such), I think LOAN SHARKS are going out of business because of these “legitimate” businesses. Here are some ideas how not to use these companies:
- Plan so you don’t run out of money before your next pay cheque! Fail to plan, plan to fail!
- If an emergency arises, have a secured line of credit or some Legitimate bank resource that you can use. Try not to take advances on your credit cards, as well!
- Borrow from family? Yes, it’s embarrassing, but would you rather pay through your nose?
- Sit tight and ride it out (if you are single, it’s much easier). I remember as a student living on Peanut Butter for a couple of days, it’s not fun, but it can work. Obviously if you are a family of 3, a lot less likely this will work.
Using these places can start a spiral where you need them every pay cheque and then you are in REAL trouble.
Conclusion: I implore you, please do not use these services.