Payday loans are an expensive form of credit. With some lenders, advances taken must be repaid quickly. Payday loans are intended to be a short-term product to meet your cash needs. They are not recommended as a solution for long-term financial needs. Like any credit product, payday loans are not right for everyone. Traditional banks typically offer other products, including lower-cost options that may provide similar sources of credit; however, individual circumstances may not qualify you for credit with these institutions. In some cases, it may be more appropriate to reach out to a friend or relative before considering the use of our service.
If you find yourself in need of help, Credit Counselling Canada is a non-profit organization whose members help Canadians to solve their debt problems, and learn to manage money and credit wisely. Clients receive professional counseling at little or no cost and all options to resolve debt problems are explored. Learn more at www.creditcounsellingcanada.ca.
Credit counselling is also available through the Ontario Association of Credit Counselling Services. The OACCS, established in 1970, represents a membership of professional not-for-profit credit counselling agencies. The OACCS provides a central referral service that links clients with accredited member agencies of the Association. For more information visit the OACCS website at www.oaccs.com.
It is also a good rule of thumb to maintain at least six (6) months worth of an ‘emergency fund’ in the rare case that a job loss or medical illness causes your income to decrease. In conjunction with a strong savings account, customers are reminded to borrow responsibility and only borrow what they need. It is imperative to fight the impulse to make expensive purchases in life to control excessive debt.
One of the best ways to control spending and debt is to ensure that your financial records and neat and organized. It is often helpful to then compile information such as your gross monthly income, monthly expenses, and your goals and objectives in regard to your savings. Once you have established this, you’ll know more about what you’re able to accomplish financially.
If you don’t know where to start or if you want to know how to make your savings work harder, finding someone your trust to help, such as a financial planner or credit counselor is an integral part of the process.
Some professionals analyze their client's situation and create a savings plan. Others make product recommendations and select the savings accounts, money market accounts, and checking solutions best suited to the client's needs. Regardless, any financial planning will begin with an analysis of your individual situation, your financial concerns, and your short- and long-term goals. After making your savings plan, sit down with someone who can help you build your savings plan and help determine the allocation of savings between various deposit products.
As we mentioned above, if you are in a CD portfolio or money-market fund, during your working years you also need six months of living expenses in liquid assets for emergencies. Just five years ago, the personal savings rate made up less than 2 percent of Canadian’s disposable income. In the current economic climate, it’s now closer to 6 percent. Conventional wisdom says to save 10 percent of your income. Depending on your goals, that percentage may vary.