The stresses of financial planning can be a great burden to everyone at some point. There is no shame in feeling overwhelmed. Life can throw some vindictive curveballs that derail even the most carefully laid plans. A blown-out tire on the highway, an unexpected fall while working in the yard leading to a trip to the local doctor and costing you work time, or even just a long month filled with birthdays or in-law visits can cost you hundreds of dollars, taking an unexpected toll on your budget and stretching you thin. The economy and the ability to meet the demands of a busy financial schedule are improving for Canadians, but nearly half of the Canadian workforce is still living paycheque to paycheque in 2018.
Covering the gaps
In the past, Canadians were forced to make the hard choice between shouldering the burden of these cash flow issues by scrounging on comfort items and other nonessentials. They had to hope that these cuts would be enough to maintain the absolute necessities, and sometimes take out a short term-loan that would end up costing an arm and a leg in repayment fees and interest. But no longer. New regulations and competitive offers mean that online payday loans are now an excellent option for those looking to fill the gaps that the past month may have exposed between pay periods.
Payday loans are simple to evaluate nowadays, many are accessible through online portals and are extended to individuals with good and bad credit alike. These are small loans that are designed to cover the gaps in your budget with deposits of $500 to $700 typically into your account in the same day you apply. This loan availability can go a long way to cover the new tire, window, or dinners for the week you are unable to work. Because of extended regulations over this industry payday lending has become a truly invaluable tool for those who find themselves a little short on cash this month.
Cracking down on dirty practices
Payday lending has come under intense scrutiny as of late, thanks in part to the unveiling of many of the industry’s dirty practices by the Netflix docuseries featuring stories ranging from loan shark Scott Tucker’s sentencing for illegal lending practices to Canada’s maple syrup industry and heist of millions of dollars’ worth of syrup. This new light has made it increasingly difficult for lenders to continue gouging customers who have gotten wise to some of the more aggressive features of some payday loan contracts in the United States, and this crackdown has extended north into Canada as well. Simply put, these short term loans are no longer a threat to your long term-financial security as they have sometimes been in the past. In fact, many borrowers are able to repay without penalty if borrowing to cover expenses for just a day or two before payday, and capped interest rates are continuing to be legislated to lower ceilings around the country.
Alternative to credit cards
Payday lending is becoming a much better alternative to running credit card debt when falling on hard times. Credit card payment tends to be easier to justify as only requiring the minimum payment because we often times think of these lines of credit as extensions of a bank account. We’re borrowing from our future capital rather than a lender. Over time, this lax attitude toward repayment can force extensive interest into our debt and end up costing borrowers much more than they bargained for. Payday lending is approached differently. Their very nature is for use as a stopgap infusion of cash that will be repaid once regular cash flow is restored.
Payday loans are a great alternative for borrowers who simply need a little assistance getting to their next paycheque, and with options for those with poor financial history as well, these lines of credit serve as a vital means of sustenance amid a financial time of struggle.