Online Loans Direct Payday Lenders Only

Some payday lenders will ask you to repay your loan in the same place where you received it. In several provinces, a payday lender cannot extend or renew your payday loan.

Payday lenders will bad credit online loans payday ask you to sign an agreement. This agreement shows the costs of your loan, including interest, fees and the due date. Read this agreement carefully before signing it. Ask questions of the payday lender if there is anything you do not understand.

Payday lenders can conduct their business in a physical location or online. You have to be careful with online payday lenders. Many of them do not have a license. These lenders do not follow all of the provincial rules designed to protect borrowers. Only use the services of licensed online payday lenders.

Be wary of online payday lenders located outside of Canada. If you ever have problems with these lenders, it may be difficult to resolve them.

Also pay attention to online sites that claim to offer payday loans. Some of them only collect your information and give it to an actual payday lender.

Payday loans are very expensive compared to other ways of borrowing.

Here are the reasons:

  • you have to pay high fees
  • costs can correspond to an interest rate of 500 to 600%
  • you may have to pay a fee if your pre-authorized check or debit does not pass

These high costs can make your loan more difficult to repay, which can increase your financial problems and increase your stress.

Before getting a payday loan, you need to be sure you can repay it on time. Otherwise, your financial situation could worsen. Your debt can continue to accumulate and you can end up paying a lot of money over time.

The costs indicated in this example are given for illustration purposes only and are calculated according to the following assumptions:

  • a payday loan costing $ 17 for every $ 100 borrowed, representing an annual interest rate of 442%
  • a line of credit includes an administration fee of $ 5, and an annual interest rate of 8% on borrowed money
  • overdraft protection for a bank account includes fees of $ 5, and an annual interest rate of 21% on borrowed money
  • a credit card cash advance includes fees of $ 5, and an annual interest rate of 23% on borrowed money

There can be serious consequences if you don't repay your payday loan on time, including the following (depending on the laws of your province or territory):

  • the payday lender charges you if there is not enough money in your account
  • your financial institution may also charge you if there is not enough money in your account
  • the total amount you owe, including fees, continues to accrue
  • the payday lender can contact your friends, family members or your employer to recover the money
  • the payday lender can do business with a collection agency, and this can be included in your credit report
  • the payday lender or collection agency can take legal action against you
  • the payday lender or collection agency can seize your property
  • the payday lender can go to court to take the money from your paycheck (also called a garnishment of your salary)

If you cannot make your payments on your payday loan on time, you can easily find yourself caught in the debt trap.