“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
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
1. A payday loan is expensive
2. When we say a payday loan is expensive, we mean really expensive
3. If you’re late repaying a payday loan, the lender can charge even more
4. Some payday lenders try to take advantage of you
5. It’s easy to get trapped in a cycle of high-cost debt
There are other (less expensive) options
Option 1. Apply for a new credit card
Option 2. Take out a secured credit card
Option 3. Open a line of credit
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.