Many people in Vaughan, Ontario are paying more than 500% in annual interest to get a payday loan at a payday company in Vaughan. This is 100% legal in Canada.
A payday loan is just what the name implies. In Vaughan, Ontario you get a payday loan from a lending store and borrow up to $500 to get by until your next payday.
And, wow, will you pay through the nose for it!
If you borrow, say, $300 for two weeks, and repay the loan in full and on time, you will pay as much as $63 in interest. That’s a crazy 21 per cent.
A rate of 21 per cent for two weeks works out to an annual interest rate of 546 per cent. And that’s before compounding and any late-payment fees.
Illegal, you might think. But you would only be half wrong. It is outrageous, in my view. But it is not illegal. Not surprisingly, many payday lenders now charge the maximum permitted interest. Well, why wouldn’t they?
Money Mart, a leading payday lender in the Vaughan, Ontario Area, recently sought to attract new or repeat borrowers with advertisements proclaiming: “Get a $200 payday advance FREE!” Remember nothing is for free?
Another type of loan is what is called a Car title loan. Companies such as Car Title Loans Canada in Vaughan, Ontario charge less than 5% per month. The interest rates are much less expensive than a payday loan company. These companies have No Credit Check, No Job Requirements, 2 year terms, Confidential and you can get your money within hours. These companies specialize in providing bad credit loans in Vancouver, British Columbia at a fraction of the interest charged compared to a Payday loan.
Remember you get any money loan in Vaughan, Ontario you should check all your options for loans?