Even though hundreds of people take out payday loans Canada every day, some people are still wary of doing so for themselves. The general public perception of these products is that they are full of risks and will do you nothing but harm. There isn’t any need for you to be concerned about what might happen to you if you take out one of these loans for yourself. Everything you’ve heard about payday loans isn’t true; as long as you take care to be responsible on a personal level, there’s no reason you should be worried about any potential issues.
What You Might Fear
There are many reasons why people might find the idea of taking out a payday loan to be frightening even if they suspect it might actually be useful for them to do so. You might worry that:
- You’ll fall so far into debt after just one payday loan that you’ll never get back out again.
- You’ll automatically develop a compulsion to take out these loans again and again even you know that’s not what you want.
- You’ll never be able to get by without them again.
- You’ll be judged by others for being ‘poor’ and suffer a loss in status.
All of these fears are valid (as in it’s okay to feel that way at first), but none have any real basis in truth or fact. While some people may in fact suffer these things and you might even know people yourself who have had these experiences, that does not mean that you are on an unavoidable path toward the same thing as soon as you choose to use payday loans Canada. There’s a reason why these things are on your mind, but it’s not because they’re an inevitable part of the borrowing experience – never lose sight of that fact.
Examining the Payday Loan Stereotype
To begin to pick apart the idea of why many people find payday loans Canada to be a frightening prospect, we need to first look at what people think a payday loan is and where they got that idea. If you’re like most people, you had probably heard of payday loans before you ever clicked on this article. Chances are very good that the place where you learned about them (for the first time and every time since) is through the media, and that’s a problem. Every day, there are dozens of news stories printed about how much payday loans hurt the poor and how desperately we need to introduce more legislation to reign them in. While it’s never a bad idea to have rules in place to help ensure that everyone gets fair treatment and that the most vulnerable people in this sector can stay safe, think about what this fixation on poverty and the poor does to the image you have in your head of what payday loans are like. Even fictional stories about what it’s like to take out a payday loan tend to end up following a sitcom-like trajectory where a character takes one out and misfortune immediately befalls them.
Talking so much about the impoverished and what these loans do to hurt them leaves you with the impression that payday loans Canada have nothing to offer except eventual financial fallout. If that’s all you ever see depicted regarding payday loans, of course, you’ll come away with the idea that they are something scary and to be avoided at all costs. It’s very hard to put yourself into the frame of mind that acknowledges that all of these portrayals are just one side of the story and that there is more to these products than what is being shown here when you never actually see that other side.
What the Real Payday Loan Picture Looks Like
The truth about payday loans Canada is that they’re nothing like that image you have in your head. Payday loans are being taken out by middle-class, educated people with increasing frequency all over the developed world now, particularly in North America. People use them to cover everything from occasional grocery purchases to an emergency house call from their plumber. Some would say this is a poor omen for the economy overall, but others might claim that this is a natural evolution of things that are happening because payday loans are such an easy and versatile product to use.
Regardless of which of these schools of thought is right about the overall trend and what it means, the important thing for you to take away from this is that there is increasingly little stigma associated with using payday loans Canada. It has never been anything to be ashamed of, but now you can rest assured that there are many other people out there who know that too and from personal experience no less. Even if they don’t necessarily want to admit to having been a payday loan user in the past, they won’t be judging you for it in their minds.
What Payday Loans Canada Can Really Do For You
Now that we’ve discussed why these products are not actually a threat to you in any of the ways that usually come to mind, let’s look at what they have going for them. There’s a reason that they are some of the most popular financial products around and have been since they were first introduced several decades ago. Payday loans actually have the potential to make your life easier in so many ways. They can help you to:
- Deal with small emergencies.
- Cover for lost income.
- Invest in productive purchases like a computer or car repairs.
- Make small, planned splurges.
All of these things would not be possible if you were only ever able to use money you actually had on hand, and there’s no reason that you should have to restrict yourself in that way unless you’re intentionally trying to exert financial discipline. You’ll have the money to spend eventually even if it isn’t sitting in your bank account at the exact moment in which you need it. Why shouldn’t you be able to use a little bit of the money that you know you will have in the future to pay for some of the things that you need or want right now?
What it comes down to is that it should be up to you to decide when and how to spend your money, no matter what your income level might be at the moment. Because they are so small, payday loans don’t fully enable you to do that, but they put the possibility closer to your reach and that alone is a big positive. They also carry out this function in an exceptionally timely manner and make it easy for you to make use of them no matter where you are or what time of day it is through online services; this makes them much more accessible to people who might be intimidated by the idea of getting a traditional large loan but are willing to give a short-term commitment a try. By vilifying payday loans in all of our collective minds, we risk losing out on a potentially great thing for no good reason.
What Real Risks Are
All this is not to say that payday loans are a completely safe product that you can use at your leisure and without any risks. There are definitely some problems that you can run into with these products that can have rather severe repercussions in some cases. The primary one is the risk of borrowing dependency or addiction. While these are two slightly different problems in terms of what leads up to them, both cause people to borrow too frequently, stacking loan on top of loan until the costs of it all become too much to handle.
To combat either issue, you simply need to see payday loans for what they are. They are not meant to be a long-term solution to long-term problems – they are only intended to help you out when you are experiencing a small, temporary and very unusual problem or occurrence in your daily life. Any recurring issue that you’ll be needing money for (an overall shortage of income to the point where you cannot cover your living costs, for example) will require a different solution altogether. Ideally, you’ll actually address these kinds of problems with measures that do not involve any kind of loan at all. As for those who become wrapped up in the idea of getting easy money whenever they like and borrow to excess, the problem they face is a lack of good self-control processes. There is no actual need for them to borrow as much as they do, but they choose to do it because it is tempting. It’s easy to avoid going down this road if you start out with that goal in mind. Performing a successful course correction, later on, is much more difficult, though, so it’s critical that you identify any hint of a vice like that in yourself and sort out your feelings about it before you ever use payday loans Canada.
The second issue is a lack of education regarding the costs of these products. While they are undeniably very useful, they are also extremely expensive to take out when compared to other types of loans. They often sport APRs that range into the hundreds, and while that isn’t such a big deal considering that you won’t be paying it off over multiple months as you would with a regular loan, it still amounts to a relatively big bill at the end of your borrowing session. If you’re not careful, you could end up with far less money in your pocket than you expected. The remedy for this is simple, however; just take care to do your research and properly understand the costs involved and you won’t be caught unawares by the final expense toll.
You Can Keep Yourself Safe
As you can see from the breakdown above, while there are dangers associated with using payday loans, they aren’t the ones most people think of. More importantly, though, they are also not inherent problems that you can’t get rid of no matter what you do. They are problems that will only bother you if you fall into certain behavioural patters, and that can only happen if you fail to take the necessary precautions against that. Just a little forethought and extra caution is enough to make a big difference when combatting the potential pitfalls you find with this kind of borrowing.
There is no need to live without the loans you need or live in fear of coming consequences once you actually have one; you have the power to borrow safely with payday loans if you really want to. All it takes is a willingness to learn, a plan, and perhaps most importantly, plenty of information on the loans you’re considering and the time to compare the many offers in front of you. If you have all of that by your side, you’re in a good place to start looking at borrowing without incurring any major negative consequences.
Find All the Payday Loan Offers You Need With Bonsai Finance
By the time you’ve finished reading this, you should have a much better understanding of payday loans Canada, including what you should and should not fear about them and what they can do for you. Armed with that information, you might feel you are ready to look into borrowing in real life. When you decide to start that journey, consider consulting Bonsai Finance to help you figure out the best way to begin. We’re experts in the Canadian lending market and have had contact with an extensive network of partner lenders for many years now; that expertise is what helped us create our online loan search tool. We can help you to find the best payday loan deals and compare offers against each other as the market changes, so you’ll always know as much as possible about what’s happening in this sector. It’s still up to you to enforce a disciplined outlook and set of habits in yourself, but you should find that this is much easier to do with the help of the detailed information that we can give to you.