Millions of Canadians each year take out payday loans to help cover short term expenses. There are over a thousand payday loan offices located in Canada that offer unsecured loans for amounts up to $1,500. Many companies offer the ability for clients to get internet payday loans in Canada without having to leave their home. This can be a major relief to short term unexpected expenses that need to be taken care of quickly.
Prior to the 1990's many Canadian employers offered payday advances
to employees in need. However, since most payroll services have moved from in house to being outsourced an employers ability to offer this service has greatly diminished. This is coupled with the fact that many banks are not willing to offer such short term and small denomination loans. This has given rise to the need of short term loan companies to fill in the gaps.
The average customer of a payday loan is fully employed with average pay but requires the convenience of short term cash to meet their needs. Their clients are both men and women. Often times the funds are used for unexpected events such as unexpected medical expenses like dental work. Payday advance companies are prohibited from rolling over the debt so it is not meant to be used as a way to make ends meet. Instead, it is only to facilitate paying for expenses on a short term basis. In addition, many payday loan companies offer information to clients about available credit counseling opportunities.
Once a client has agreed to take out a payday advance they will be required to write a post dated check in the amount due to the payday loan company. This will then be cashed once the client receives their next paycheck. The total due will be for the amount of principal borrowed along with the interest due that was agreed to when signing up for the short term loan. Interest rates are high for this type of short term unsecured loan product.
In conclusion, everyday people who just have a short term cash crunch can feel secure knowing that there are regulations in place to help them from being taken advantage of when they seek out payday loan services. The client will be able to meet their short term cash flow needs without having a major impact on their day to day finances.