The cost of Payday Loans
What is a default fee?
Fees that may be charged when a borrower does not pay back his/her loan on time in cash.
Who can get a payday loan?
A job
A bank account
Automatic deposit at work
Identification to prove that you are older than 18
Payday Loans are more ___________ than other types of loans.
Expensive
What does default mean?
WHen you do not pay your loan on time
What is a payday loan?
A small, short-term loan to be repaid on your next payday.
Cashplan charges 2.99% abd a $5.99 processing fee. How much would Garry pay to get a $800 cheque cashed?
$29.91
Getting a payday loan and paying it back on time will help your credit rating.
(True or False)
False
Only use a payday loan if....
it is a last resort.
What does the term interest mean?
A rate which is charged to borrow money usually expressed as a percentage
What regulations does the NWT have on Payday Loans?
None
if a payday lender charges $21 per $100 for a loan, how much will it cost to get a $300 loan?
You need to sign a ___________before you can get a payday loan.
Contract
Many people get into serious financial t___________using payday loan companies
Trouble
What does default mean?
Not paying your loan on time.
What three things do you need to qualify for a payday loan?
ID
Proof of residence
Proof of income
What is the cheapest type of credit you can get?
A line of credit
How much money can you apply for in most cases?
$1500 or half of your paycheck.
Compare _______ before using a payday lender
rates
What does rollover loan mean?
A borrower already has one payday loan, and before that loan is paid off in full, the borrower receives another payday loan from the same lender.
What are three reasons why people get a payday loan?
Unexpected medical bill
unexpected emergency
To pay for a debt.
What happens when you default on your loan? 2 things
You will be charged an additional fee and sent to collections
What are two ways you can get a payday loan?
Online or in store
Read the _______________ carefully before you sign.
Contract
This means that a borrower might decide to give back the loan within a certain period of time.
cool off period
Name 3 regulations that some provinces have for payday loans.
Cool off period
No rollovers
Waiting period between loans.