Payday loans are the dirty little debt secret no one talks about, but as many as 2 million Canadians borrow these from these high-interest short-term loans every year. What is a payday loan? A payday loan is a loan for an amount less than $1,500 with a term ranging from 14 to 90 days. They typically have interest rates north of 300%, making them some of the most toxic financial products available to consumers. Payday lenders have been criticized and labeled as predatory since they typically target the economically vulnerable and trap them in a cycle of debt. These loans are marketed as “alternative financing” for people who do not have or cannot get more traditional forms of credit, like a credit card or line of credit. Payday lenders typically set up shop in low-income neighborhoods, where they prey on new immigrants or the working poor who are both low […]
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