Online payday loans Ontario are a great product that still have some potential dangers involved with them. Many people misuse them without realizing what they’re doing. Aside from that, though, there are many situations in which they are the perfect tool to help you out of trouble. If you’re going to use them yourself, you should make sure you know exactly what they are and how to use them properly. This article should help you to do that.
What Are Online Payday Loans Ontario?
If you understand how a standard loan works, you know most of the basic concepts of a payday loan. You’re still borrowing money and you’re still paying interest on it. The main difference lies in how much you have to pay and how quickly you have to come up with that money. A payday loan is meant to be paid back almost immediately – you only have 2 weeks (usually though many lenders make exceptions for people who don’t receive bi-weekly paychecks in the usual fashion) to finish repaying your entire balance. Because that term is so short, lenders attach sky-high interest rates to these loans to make sure they are able to make some money on them. This means they are very expensive, especially when you take on many of them over time.
Payday loans have developed a bit of a bad reputation over the years due to how easily people tend to become reliant on them. Because they are so easy to get, it’s tempting to just take them out over and over without tallying up the full cost of borowing so many times. Simple awareness of this issue goes a long way, though. Ontario has existing regulations about payday loans that are meant to keep you safe from predatory lenders, and all reputable lenders are very aware of these rules and go out of their way to be compliant with them at all times. You don’t have to worry about falling into trouble with online payday loans Ontario as long as you’re careful about it and know what you’re doing.
Setting Realistic Expectations
Part of knowing what you’re doing is figuring out just what it is that you expect from these loans and whether or not they will be able to meet those expectations. It’s important to have a good understanding of what these loans can and cannot accomplish in your life so you can avoid being disappointed by the results and feeling like you need to borrow more to try and get things to work out as you planned; knowing that that won’t happen changes the way you think about these outcomes. When you have this framework in mind, you’re much more likely to borrow appropriately and responsibly and to encounter less trouble with your borrowing as a result. Here are 5 situations in which online payday loans Ontario might be helpful and 5 more severe situations in which they won’t make the grade; this should help you to judge whether your own problems are realistically manageable with this type of solution.
1. You Need Food To Last the Week
We all need to eat, but sometimes people don’t have quite enough money to cover their regular grocery order for the month. Maybe you got fewer hours at work than you are used to getting, or you accidentally spent a little more than you intended to in the first part of the month. There’s not much you can do about not having enough hours, and everyone makes small budgeting mistakes sometimes. That said, there is no option to go without food if you want to stay healthy and alive, so if you have to resort to online payday loans Ontario to get some food on your table, that’s nothing to be ashamed of. Assuming this really is a one-time thing, you’ll have plenty of time later on to make up for the extra costs of that loan, so that isn’t a big deal. Choosing to borrow in this situation is choosing to put yourself first, and that’s rarely a bad idea.
NOT – When You Need Food To Last the Month
Aside from the fact that these loans are unlikely to be large enough to cover a grocery bill of that size, needing to borrow money to eat at all during the month is usually indicative of some deeper budget problems. Eating is one of a human’s most basic needs and it should be given high priority in your budget for that reason. If you’re paying anything else first on a regular basis, even your rent, you may need to reconsider what you’re spending your money on. Payday loans are far too expensive a solution to be practical in this scenario. You need to figure out a different way to cover your food expenses, even if that means going to food banks to get yourself enough to eat.
2. You Need a New Uniform For Work
If you’re starting a new job that requires you to be uniformed when you work and does not provide those uniforms upon getting the job, getting a loan to buy one isn’t a bad idea if you can’t afford it outright. One uniform might be expensive relative to the cost of a regular set of clothes, but it doesn’t represent a huge cost in the grand scheme of things. It should help you to make some money by making it possible for you to hold the job you’ve been offered, which is always a great investment. Plus, many uniforms include safety measures like goggles or steel-toe boots that are meant to help keep you safe while you work, so it’s also an investment in your own wellbeing.
NOT – When You Need a Whole New Wardrobe
There are situation in which one might need to replace most of their clothes: after a fire which destroyed the ones they had, perhaps, or a dramatic amount of weight loss. That does not mean that payday loans are a good solution for these issues. You’ll probably need a much more substantial loan for this purpose, and besides that, timing is not an important factor in the problem. The main reason that online payday loans Ontario are valuable to some people is that they allow you to get nearly immediate access to funds. That’s important when the need is urgent, like in the food shortage situation described above. This is not an immediate need, so it’s probably not worth paying the extra costs that come with a payday loan. It can wait until you’ve gotten the money together yourself by saving up or until you’ve done some more research into less costly loan options.
3. Your Fridge Gave Out and It Needs To Be Fixed
It happens to everyone – sooner or later, your fridge, stove, washing machine or other large modern convenience is going to break down. When appliances finally reach the end of their life, they need to be replaced as soon as possible to avoid having their absence take a large toll on your quality of life. If getting that done means borrowing some money to make it happen, then so be it. As long as you don’t go too extravagant, online payday loans Ontario should be able to cover this expense.
NOT – When You Need To Replace Your Entire Kitchen
Kitchen renovations might sound like a great idea, but not if you plan on relying on online payday loans Ontario to get them done. Payday loans should not be used to fund expensive or unnecessary things. Even if you know your countertops are wearing down or your cupboard doors are getting creaky, extensive renovations like this can almost always wait until you’ve found an alternate means of funding them. You won’t get very far with just one loan to back you up, and you really shouldn’t be taking out multiple loans at a time.
4. Your Pet Is Sick and Needs To See a Vet
When your pet isn’t feeling well, it’s always a good idea to take them for a checkup. Doing so will cost money, but you can usually get the issue resolved fairly quickly and without much extra expense – even if it’s something serious. If the disease has advanced far enough, most vets will recommend putting the animal down rather urging you to pursue extensive and expensive courses of treatment to try to save it. Online payday loans Ontario will provide you with enough money to get a diagnosis at least, and it’s up to you to decide where to go from there.
NOT – When You or a Family Member Are Sick
When humans get sick, solutions are rarely that cut-and-dry. Most of your costs will be covered by the universal health care system we have here in Canada, but there are many expenses you’ll still have to cover yourself. Any medications you need won’t be paid for, as well as any elective tests, certain therapies, or any assistive devices you could use to make your life more comfortable and livable. Often, these costs are not only high, but ongoing for an extended period of time. There’s just no way that payday loans will suffice in cases like this, so it’s best to skip over that idea entirely and start looking into things like larger loans or government programs to help with the strain.
5. You Need To Put Down a Deposit On An Apartment
When you’re shopping around for a new place to live, one of the big things on your mind will be what you’ll have to pay up-front to secure it. Most places will ask you for a security deposit and possibly the first and last month’s rent in advance before they will guarantee that you can have the place for yourself. With rent prices as high as they are these days, that can add up to a large chunk of money that you may not have on hand right away. It may make sense to borrow that money if they alternative means risking losing the apartment you carefully picked out and that suits you just right.
NOT – When You Need Help To Cover the Rent
A deposit might be a one-time cost, but the monthly rent certainly isn’t. You should be able to easily pay the sum that is expected of you – to be more precise, it’s generally accepted that your rent should not take up more than 30% of your income. If yours is significantly above that, that particular place is not within your budget. If you can’t afford the place where you are living on your regular income, you may need to find a new home in the near future. Covering up this problem with loans is a bad idea even if you think you can make things work; take action now instead of waiting it out by taking on debt.
Your Source For Information Before You Borrow
These aren’t the only situations in which online payday loans Ontario can be useful – pretty much any small-scale crisis like this can be largely smoothed over with the help of the small cash injection that these loans provide. If you’re experiencing a situation like that and think you might want to look into solving it with loans, we can help you to find the right offers to deal with the problems you’re having. Our loan search tool trawls our vast collection of partner lenders looking for the best options among them that suit the criteria you gave it. You’ll have a set of online payday loans Ontario offers ready for your application sitting in front of you in seconds. Solving life’s little problems has never been easier.