Payday advances: A Negative Means To Fix A larger Issue

Payday advances: A Negative Means To Fix A larger Issue

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83% of pay day loan borrowers in Ontario had other financial obligation in the time they took away a quick payday loan

72% attempted another loan source just before taking out fully a quick payday loan

KITCHENER ON – An overwhelming 83% of cash advance borrowers in Ontario had other outstanding loans during the time of their last cash advance, based on a research of Ontario residents commissioned by Hoyes Michalos, carried out by Harris Poll.

“short-term and payday advances can take place to fix a sudden cashflow crisis, however they are contributing to the entire financial obligation burden of Canadians,” states Douglas Hoyes , an authorized Insolvency Trustee with Hoyes, Michalos & Associates Inc.

In accordance with the research, among residents of Ontario :

  • 83% of pay day loan users had other outstanding loans during the time of their payday that is last loan
  • 48% of pay day loan users agree they look for a short term/payday loan because of the quantity of financial obligation they carry;
  • 46% of the whom used a loan that is payday the very last one year agree totally that a quick term/payday loan caused it to be simpler to maintain with financial obligation repayments.
  • The typical debt that is non-mortgage at the full time they took away an online payday loan ended up being $13,207 .
  • Over fifty percent of most users (55%) sign up for one or more loan in 12 months, and of those, 45% state their financial obligation load increased post pay day loan, with just 14% saying their debt load reduced. […]