Anything can happen in a moment that will leave you strapped for cash. Sometimes the only option you have to get through a financial hurdle is to find online payday loans. However, you don’t want to go into getting a payday loan if you are unsure of how it works and what the details are that surround it.
Each loaning company have similar but different distinctions that can complicate things if you don’t know what to look for. That is why our experts can help you find the lender that will suit your immediate needs and not hurt you financially.
Taking out a loan is no small commitment. Just because you’ve come to a point where you think you need one doesn’t mean you won’t hesitate to go out and get it. It’s natural to be a little skittish about taking on debt if you’ve never done it before, or if you’re concerned about where that action might take you over time. It isn’t strange to have concerns, but there’s no real need to worry. For better or for worse, borrowing is an established part of the Canadian experience now and is something that a large chunk of the population will go through at some point in their lives – and for most of them, the product they will turn to first is payday loans.
Keep reading to learn more about why that is and why you should feel completely comfortable with taking advantage of this option if it suits you.
Zooming In On Canada’s Debt Picture
If there’s one thing that’s become clear over the years regarding Canada’s consumer finance situation, it’s that debt is a huge part of how that sector operates. Credit card debt is of course prevalent, and many people who own their own homes are still in the process of paying off their mortgage, but that’s far from the only debt that people are carrying in this country. Many who don’t have a mortgage left to pay are drawing on the value of their homes to finance their credit through home equity lines of credit, better known as HELOCs. These products allow people who own at least a fair portion of their own homes outright to sign over some rights to a portion of the house to a lender temporarily in order to secure a large amount or good terms on a loan they want.
Canadians currently hold HELOCs worth approximately $223 billion with the big six banks alone, indicating a strong demand for them that troubles some economists. If you don’t make consistent payments on a HELOC, you could end up with your home getting repossessed, which leaves you taking a major risk when you decide to use them. The fact that so many people are taking them out now suggests that Canadians are getting extremely comfortable with that risk – perhaps too comfortable. Regardless of what you think about this development, though, it is undeniably happening, so it’s hard to deny that even people who are established enough to have assets are routinely having problems getting by in this country. This is particularly problematic because not everyone has the privilege of putting a property up for collateral like this. If those who do have this advantage can barely manage their debts, where does that leave the ones who lack this ability?
Payday Lending Is Up, Too
Those who cannot leverage their property for better rates usually don’t forgo borrowing altogether; HELOCs are not the only version of debt that’s on the rise. Payday loans have also never been more popular, with more and more outlets that are meant to help people take them out opening up every day. These loans are the classic small short-term affairs that most people are referring to when they talk about borrowing, usually coming in at less than $1,000 apiece and meant to be paid back in 2 weeks or less. Because they are so easy to get and can be wrapped up and forgotten about rather quickly, they are most people’s loan of choice whenever something comes up in their financial lives, and more and more people are starting to catch on to how helpful they can be. Research has shown that payday loan use among insolvent borrowers has tripled since 2011, and there’s no telling what the rate is like within the general population. As you’d expect, the market is responding with more and more lenders offering these types of products.
This proliferation of new short-term lenders in the market does a lot to push these loans into the public consciousness. Not only are there more options to get them in general, but you’ll also find yourself becoming more and more exposed to them in your daily life over time. This makes it much easier to arrive at the conclusion that loans are a good way of solving a money problem you have when one inevitably crops up. Many people will have the choice of several different lenders within walking distance, and that’s not even counting the extensive line of offerings that you’ll only find online. It’s never been easier to take out a loan, and if you were even mildly interested in the idea to begin with, there’s a lot less standing in your way right now than there might have been even a few years ago. If you tell people about your experience, you’re much more likely to find someone wanting to swap stories about their time using loans with you than wanting to condemn you for your choices.
What Does This Mean For You?
These new developments in the Canadian lending landscape have rippling impacts that go far beyond the individual who actually did the borrowing in each case. They have massive repercussions on the way people think about lending and how acceptable it is considered, as well as people’s general comfort levels with it. Even if we used to think of borrowing as something that was only done by the poor and desperate behind closed doors, the prevalence of it has gone a long way toward changing that perception. The more people borrow and see others around them borrowing, the more they start to think of it as just another part of life and nothing to be afraid of. At this point, it’s a necessity for many just to get by – no one can afford to be shy or secretive about it anymore.
All in all, Canadians are very used to assuming and carrying debt over time, and while that may not be the ideal situation in the aggregate, it should let you know that it’s perfectly normal to live your life with some amount of debt and that that is nothing to be alarmed about or ashamed of. Borrowing is something that anyone might do if they needed to, regardless of what walk of life they come from and how much money they normally make. It’s more clear than ever that borrowing is not a thing to be stigmatized, but a valid solution to the financial difficulties we all encounter from time to time. It’s still not something you want to have to resort to doing if you can help it, but that’s no reason to turn it down when it has the potential to improve your life so much.
So Why Would You Get Payday Loans?
Having the freedom to get payday loans without fear of judgement is great, but you may not realize what you could use these products for if you were so inclined. Payday loans are extremely versatile in spite of (arguably even because of) their small size. A lump payment of $1,000 or less can still do a lot to make someone’s life easier and to put them in a better place to weather any smaller issues that might crop up in the future. For example, using one to get some extra groceries when your paycheck runs a little short one month allows you to stay healthy and feed your family if you need to, keeping the basic parts of life as routine as possible while you wait for things to go back to normal. This ensures that you don’t suffer unduly for a small problem with your finances and keeps your spirits up so you can get out there next month and gather up the extra work you need to fix your income problem. It’s a small thing, but it’s always better not to have to go without.
Drastic improvements are probably not going to be possible with so little to work with, but being creative about how you spend this money can make it seem like much more than it really is. The key to making sure that it has a lasting impact on your life is to choose items or services that will provide lasting value over time. This can be in the financial sense or in the enjoyment sense. If your stove has been broken for some time, for instance, you can use the money you borrowed to fix it or buy a new one. Once this is done, you’ll be able to cook at home again, allowing you to stop buying as many takeout meals and make cheaper, healthier meals for yourself that won’t break the bank. The savings will add up substantially over time, and you just might find yourself feeling better too. If entertainment is what you’re after, though, you might invest in something like a Blu-Ray player or video game console – something that you can use time and time again and can help you pass the time for little cost beyond that first up-front expense. You’ll feel the impact of these purchases for months if not years, making them a good investment that will seem positively cheap compared to the value they provide. Those kinds of purchases are more than worth borrowing for.
When You May Still Want To Hold Back
Before you start thinking of payday loans as a financial cure-all, it’s important to remind yourself that they have many limitations that might make them an inappropriate solution in some cases. Payday loans are a great way to get yourself out of a bad financial spot, but they won’t smooth over a situation in which a lack of money is a permanent problem for you. They can give you a little bit of extra money that you can use to get by, but not so much that you won’t need to come right back and get another in two weeks’ time so that you can pay your bills again. The trouble is that the more you borrow, the harder it becomes to keep that from having a negative effect on your life. Interest fees for many different payday loans add up fast, and this will eventually have the effect of setting you back even further than you were before. You may even wind up bankrupt, which would be the ultimate setback in this scenario.
To avoid these problems, make sure you think long and hard about what you’re about to do before you sign up for any payday loans. While social stigma is definitely no longer a real concern, being careful about this choice is still important for your own well-being. You owe it to yourself to be honest about whether or not you need something a little more involved, such as a larger installment loan or even something more drastic like credit counselling. Even if that prospect might be a bit uncomfortable to think about, it just makes sense to turn to an effective solution rather that one that will not accomplish what you need it to do. Sometimes payday loans will be that solution and sometimes they won’t; that’s just the way things are sometimes.
Helping You Get Over Anxiety About Payday Loans Is What We Do
Taking out payday loans is something that thousands of people do every day, and if you think doing so would help you to achieve your goals and live your life the way you want to, you shouldn’t hesitate to do it too. We at Bonsai Finance can help you along this part of your financial journey. We can show you all of the different options for you out there to help you make the most informed decision in the end. That way, you can get all of the benefits that many Canadians are now enjoying without risking choosing a disreputable lender or spending too much on an offer that is overpriced; there’s no way for you to lose, so go online and get started at our website right now.
Reasons why online payday loans might be necessary for you
- You might need online payday loans for:
- Car repairs that you weren’t expecting
- House repairs that can come up suddenly
- Family emergencies that can leave you strapped for cash
- Sudden payments that need to made
- Rent or mortgage payments if you are short on cash.
The list is endless. However, there are so many online payday loans Canada that can make choosing a single provider very difficult for you. Most people will settle for the first loan that is offered to them, but this can lead you to make a financial decision where the terms are unclear and unexplained.
At Bonsai Finance, we can take your application form and help you find the best loan that will suit your needs without putting you in a position that will hurt you rather than help you.
Reasons to seek assistance when searching for payday loans
- You get full understanding of terms and conditions.
- It will help you be sure that where you are getting your loans from is a reputable company.
- There will be no secrets hidden in the documents as everything will be laid out for you.
Taking out online payday loans can lead you to whole slew of troubles if you don’t understand the terms and conditions clearly. Most people will avoid asking the right questions because they fear this will make them appear as though they are uneducated, that is why assistance is a great idea when making financial choices.
There are differences in the types on online payday loans Canada that you can get. These differences are:
- Terms of the loan. Some require immediate payment at your next payday, others allow multiple payments.
- Some accept different forms of income. These can include government benefits, employment income and pensions.
There are often requirements that come with getting payday loans that you want to be sure you have before you embark on this avenue.
These requirements are
- 18 years of age or over.
- Verifiable income source that is regular.
- Verifiable bank account that is active for at least 3 months.
- Employed or receiving the income for a minimum of 3 months.
- Payment either by cheque or direct deposit that can be verified.
Be grounded when making a choice. Make sure you take your reality into account before you choose a loan.Consider all aspects of your financial situation before choosing to get online payday loans. You need to be sure that you know what your repayment limitations are and you need to be upfront with a lender about these limitations.
The loan process can be varied depending on the lender. You can help accelerate this process by making sure you provide all the necessary documents and signing the agreement immediately.
Here are Bonsai Finance our experts can help you have full disclosure of what types of loans out there, the conditions and terms associated and the reputations of the companies that offer them. We are here to make sure you get online payday loans that suit your needs, budget and repayment capabilities.
Don’t be strapped into accepting the first loan that is offered to you without first knowing everything there is to know about it. Our experts will only provide you the best.