(NC) Is a payday loan the best way for you to borrow money? While tempting, a payday loan can have unexpected fees and cost more than you think. Reach your own conclusions with these key facts you should know before turning to a payday loan lender.
- Payday loans are extremely expensive. Know the government rules that are in place to protect consumers. For example, under Ontario regulations a payday lender cannot charge a fee of more than $18 for every $100 borrowed.
- If you get a payday loan of $100 in Ontario for two weeks, that two-week fee of $18 equals 468 per cent when calculated as an annual interest rate.
- A late fee is just one of the charges you’ll face if you fail to pay back your loan in full and on time with funds the payday lender draws directly from your bank account. Your bank, credit union or other financial institution might charge you other penalty fees, such as an amount for having ‘non-sufficient funds’ in your account. A typical NSF charge at a bank is around $50.
Find more information, including other ways to borrow money, online at itpaystoknow.gc.ca.