Payday loans: Why to consider alternatives

Our family was hit with unexpected bills, and we needed some extra money. I went to a payday lender, and was approved for a loan in minutes. They made it seem so easy. And then I learned how much I would be paying in interest. I was shocked. I decided to ask my parents for a loan instead.

– Allie, Surrey, BC

You have rent coming due, extra bills piling up, and you’re strapped for cash. Taking out a payday loan can be a tempting short-term solution. However, your cost of borrowing is through the roof. And relying on payday loans can get you into deeper financial trouble. Thankfully, there are other options to borrow money in a pinch.

Five reasons to avoid payday loans

There are other (less expensive) options

If you've taken out a payday loan

You may be able to cancel

If you’ve already taken out a payday loan, you may have the right to cancel it. You can always do so within two business days of taking out the loan. You may even be able to cancel the loan outside of the two-day cooling-off period if the lender didn’t cross their t’s and dot their i’s. See our guidance on cancelling a payday loan.

 

  • This information applies to British Columbia, Canada
  • Reviewed for legal accuracy in December 2019
  • Time to read: 6 minutes

Reviewed for legal accuracy by

Mario Garcia, CarbonCure Technologies

Mario Garcia

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