A pay day loan is a short-term, high-interest loan this is certainly built to alleviate pecuniary hardship occurring in-between paychecks. In accordance with the Canadian pay day loan Association, very nearly 2 million Canadians use payday-lending solutions each year.
Pay day loans are priced between $100 to around $1,500 with bi-weekly rates of interest as much as 25per cent – or a great 652% in Annual portion Rate (APR).
Many provincial governments have actually acted in modern times to modify and cap the maximum interest rate that are charged by payday loan providers, nonetheless, normal prices continue to be high – adequate to ensnare borrowers in a unending period of debt. Continue reading