Tag: interest rates

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PAYDAY LOAN COMPANIES: THERE ARE OPTIONS

payday loan, payday loans, payday loan companies, living paycheque to paycheque, interest rate, interest rates, trustee, bankruptcy, debt, financial institution, financial institutions, financial plan, the Cash Store, VanCity, starting over starting nowFinally a financial institution has stepped up to the plate and is offering a viable alternative to payday loan companies. Sadly, people who typically turn to payday loan companies are low income earners who are barely surviving and living paycheque to paycheque. Payday loan companies are not helping them; they are creating higher debt loads and holding them hostage with insane interest rates.

The Cash Store, a payday loan company, offers a $300 loan for 14 days for $69, which is an annual interest rate 599.64% on their payday loans product. Vancity, Canada’s largest community credit union with branches in Metro Vancouver, the Fraser Valley, Victoria and Squamish, launched a new financial product to combat payday loans, called Vancity Fair & Fast Loan. If a credit union member borrows $300 for minimum term of two months and pays it off in two weeks, it would cost $2.20, a 19% annual percentage rate.

The Canadian Payday Loan Association says as many as two million Canadians take out payday loans every year. There has been a lot of talk about “cleaning up the payday loan industry” but if more financial institutions follow Vancity’s lead, payday loan companies would disappear from our landscape without further government regulations.

Don’t wait for payday loans to disappear before searching out more permanent solutions. Instead of perpetuating the cycle of debt, we encourage you to see a professional trustee. Contact Ira Smith Trustee & Receiver Inc. for a no fee, no obligation appointment. We’re a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. It’s time to end the cycle of debt. Say NO to payday loan companies. Say YES to a solid financial plan for moving forward to a debt free life.

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Brandon Blog Post

CANADIAN PAYDAY LOANS NO CREDIT CHECK: TOO GOOD TO BE TRUE!

Canadian payday loans no credit check, payday loans, credit check, credit, credit cards, lines of credit, trustee, bankruptcy, interest rates, debt, personal bankruptcy, bankruptcy alternatives, bankruptcy faqs, Cheri DiNovo, starting over starting nowIf something is too good to be true, like Canadian payday loans no credit check, it usually is. More companies seem to be springing up like weeds every day offering Canadian payday loans. No credit check is the hook they use to bait you. When it comes to money, no one offers you something for nothing. Think logically, if you have bad credit or no credit, why would any legitimate company be willing to give you money? You and I both know it doesn’t make sense. Yet, the Canadian Payday Loan Association says as many as two million Canadians take out payday loans every year. Why would anyone respond to an ad for Canadian payday loans no credit check? They don’t have access to conventional credit like credit cards, lines of credit or overdraft and they aren’t aware that they can solve their problems instead of taking on more debt.

How can a company offer Canadian payday loans no credit check and make money? Simple; they charge exorbitant interest rates which are disguised so that the consumer has no idea what they are signing on for. According to Scott Hannah, president of Canada’s Credit Counselling Society, when a payday lender offers you 21% interest for a 14 day loan, that is actually 546% annual interest! Can you imagine anyone agreeing to pay 546% annual interest? But when it’s disguised as 21% for a 14 days loan, it seems quite benign. The clients who make good on their loans pay for the ones that default on their loans and those outrageous interest rates offset the losses.

Many people in the private and public sector are outraged at Canadian payday loans no credit check companies and many politicians like Cheri DiNovo are trying to shut them down. This is what she has to say:

Ontario NDP MPP for Parkdale-High Park, Cheri DiNovo

I feel they’re just ripping off poor people who have to go there for a loan and it’s just ridiculous what they charge. You’re only allowed to charge $17 on the hundred. Well with them, it’s a lot more. I think it’s something that should be outlawed and something the company should be shut down. I mean it’s outrageous.

There are better solutions to your financial problems than taking on more debt. Say NO to Canadian payday loans no credit check companies. Say YES to real financial advice from a professional trustee who is federally licensed and trained to deal with people facing a financial crisis or bankruptcy.

I understand that you are scared to declare personal bankruptcy. That is why personal bankruptcy is the last option we look at when providing you with a no charge first consultation. We first consider your entire situation, and discuss with you the bankruptcy alternatives that might be proper for you to consider. It is only after we exhaust every possible bankruptcy alternative, that we even consider discussing bankruptcy with you. Please check out the information we provide in our top 20 bankruptcy faqs section, so that you can gain real knowledge. More debt through the various Canadian payday loans no credit check companies is just a very expensive band aid, it is not a proper solution to living a debt free life!

Contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now you will be on your way to solving your problems, not taking on more debt.

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Brandon Blog Post

LINES OF CREDIT (LOC) CAN BE JUST AS DANGEROUS AS A CREDIT CARD!

line of credit, lines of credit, loc, credit line, credit card debt, credit cards, interest rates, lower interest rates, financial trouble, credit cards to build credit, credit line increase, financial trouble help, line of credit vs loan, lines of credit for bad creditWe are constantly bombarded with messages about the dangers of credit card debt, but no one is talking about Lines of Credit (LOC). The reality is that Lines of Credit and credit cards are just financial products. They are not in and of themselves problematic; how we use or abuse them is the issue. A Line of Credit can be just as dangerous to your financial well-being as a credit card.

What is a Line of Cre​dit? A Line of Credit is a type of loan that lets you borrow money up to a preset limit.

How does a Line of Credit work? You can withdraw or transfer funds from your Line of Credit at any time by:

  • Making a withdrawal at your financial institution or at a banking machine
  • Writing a cheque
  • Telephone or online banking

Once you pay off or pay down your Line of Credit, you can access the funds up to the limit you are allowed. You pay interest on the amount that you borrow from the day you take the money out of your Line of Credit and you must make a minimum payment on the balance every month.

How do you get a Line of Credit? You can apply for a Line of Credit at a financial institution. They will determine your credit worthiness and your credit limit (how much you will be allowed to borrow on your Line of Credit).

Financial institutions have been promoting the use of Lines of Credit and it’s not a big surprise; they make money when you borrow money. And although Lines of Credit do come with lower interest rates than most credit cards, they can be just as dangerous to your financial future. The lower interest rates have lulled many people into making purchases that they may not have otherwise made. Then the reality of paying off the Line of Credit becomes a reality and where is the money going to come from?

According to Equifax, “More and more Canadians, it seems, are turning to their credit line, with balances increasing across the country”.

David Chilton, author of The Wealthy Barber and The Wealthy Barber Returns has very strong, negative opinions about Lines of Credit. “LOCs are the “worst thing” that’s happened to Canadians in the last 20 years. If I was prime minister, I’d shut them down.” Chilton said at a 2011 conference of the Canadian Pension & Benefits Institute as reported in the National Post newspaper. “It’s unbelievable how people are abusing these things.”

Borrowing without a solid repayment plan will get you into financial trouble every time. Are you experiencing serious debt issues as a result of your Line of Credit or credit cards? Contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now we can help you live a debt free life.

Call a Trustee Now!