In Canada, there are over 1,300 payday lending outlets offering excessively high priced but quick and effective how to borrow money that is short-term. Payday loan providers charge between $15–25 in charges per $100 lent for a fortnight, leading to yearly portion prices of up to 500 per cent. In comparison, Canadian legislation prohibits other loan providers from charging much more than 60 % yearly interest on loans.
The use of payday lenders continues to increase despite the high cost of borrowing. From 2009 to 2014 (latest available figures), how many Canadian grownups that reported utilizing a loan that is payday from two per cent of households to four per cent, borrowing almost $2.2 bn worth of loans in 2014. Customers typically utilize payday loan providers being a short-term fix when they’re in need of money to pay for the next bill or a unanticipated cost. Continue reading