Before obtaining a payday loan, you should consider whether a payday loan is a sensible choice that meets your particular financial needs and situation.
Why do people use payday loans?
When faced with an emergency shortage of funds due to an unexpected bill or repair, a payday loan can be a good solution. For example, it can be less expensive to use a payday loan to pay a late telephone or cable bill to avoid a reconnection charge, or to cover a cheque you have written to avoid an n.s.f. charge from your bank.
Proper use of payday loans
Payday loans are meant for occasional and unusual use only. Payday loans are not meant to be used continuously, or as long-term loans. If you find yourself using payday loans on a frequent basis, you should consider using other sources of financing, or else consulting a non-profit credit counsellor.
Understand the terms of your loan
You should read your loan agreement in full and be sure you understand all the costs and terms of the loan. If you have any questions, ask your loan provider. Ensure you receive a copy of each document you have signed. CPLA members must disclose all costs and fees to you, and provide you with a copy of your documents.
You should know when your payday loan is due, and make sure you have enough funds in your account on the due date so you do not incur any n.s.f. fees. If your loan goes into default, you should contact your loan provider to work out a repayment arrangement.
Other options
You should evaluate your financial situation to determine if a payday loan is a good choice for you. If you feel you are using a payday loan too often, consider other borrowing options such as asking a friend, employer, or family member for a small loan. You might also consider obtaining an overdraft, or a line of credit, or consolidating your debt at your bank.
Help is available
If you find your monthly bills are often exceeding your monthly income, if credit and collection agencies are calling constantly, or if debt stress is making it difficult to cope with everyday life, these are all signs that debt has become a problem. It is always better to recognize a problem and try to deal with it than to let it build into a larger problem. A credit-counselling agency can help you in this situation.
Credit counselling services
A payday loan is an unsecured short-term loan to meet unexpected cash needs. Payday loans are for occasional use only and should not be used to cover continual shortfalls in your budget.
If you have ongoing problems meeting your financial needs or debt obligations, you should consider consulting with a credit counsellor.
Where can I find credit counselling services?
Canada
Credit Counselling Canada
www.creditcounsellingcanada.ca
Alberta
Credit Counselling Services of Alberta Ltd.
www.creditcounselling.com
Phone: 1-888-527-8999
Credit Counselling Society
Phone: 1-888-527-8999
British Columbia
Credit Counselling Society
www.nomoredebts.org
Phone: 1-888-527-8999
Manitoba
Community Financial counseling Services
Email: cfcs@mts.net
Phone: 1-888-573-2383
Credit Counselling Society
Phone: 1-888-527-8999
Ontario
Ontario Association of Credit Counselling Services
www.oaccs.com
Phone:
905-945-5644
Nefoundland, New Brunswick, Nova Scotia and PEI
Credit Counselling Services of Atlantic Canada
www.solveyourdebts.com
Phone:
1-888-753-2227
