Payday lenders usually charge interest of $15-$20 for every $100 borrowed. Calculated on an annual percentage rate basis (APR) – the same as is used for credit cards, mortgages, auto loans, etc. – that APR ranges from 391% to more than 521% for payday loans.
With the cost of living outpacing inflation, quick loans that do not require a credit score can be an enticing tool to fill personal financial gaps, especially for young people. According to a 2018 CNBC survey, nearly 40 percent of 18- to 21-year-olds and 51 percent of Millennials have considered a payday loan.Dec 23, 2019
Nearly all payday lenders in Canada are licensed, though some online payday lenders are not. Still, the Canadian payday loan industry has rapidly expanded. There are over 1400 payday storefronts spread across the country. It is estimated that close to 2 million Canadians take a payday loan each year.Apr 12, 2021
Failing to pay back a payday loan comes with a number of serious consequences, including: Debt collection activity: Your lender will attempt to collect payment for you for about 60 days. If you're unable to pay them within this time frame, they'll likely turn to a third-party debt collection agency.Jan 18, 2020