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Updated by admin-245 on Oct 27, 2020
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Top 5 Reasons Why People Use Payday Loans in Canada

Payday loans have become very popular in recent times. Despite having a high-interest rate and many other loan options out there, Canadians still opt to choose no credit check payday loans Canada to run their bills.

1

#1 Cover for Their Rising Daily Bills

#1 Cover for Their Rising Daily Bills

The cost of living is increasing as the days go by. Prices are getting higher and this makes it hard for families to keep up with the rising cost of living. This situation is worsened by the increased rate of unemployment.
Most people find the best way to deal with this problem is to get no credit check payday loans Canada as they are easy to apply for and have fast loan approval. They also want to avoid the embarrassments that come when borrowing money from other family members, friends, and other colleagues.
If you are not careful, you can end up borrowing a huge amount of money that is difficult to pay back with their high interests.
Try saving when still employed, cutting down on your expenses, or looking for a job if you are unemployed to save yourself from all these stressful cases.

2

#2 Repay Other Debts

#2 Repay Other Debts

The Consumer Financial Protection Bureau report shows that 80% of payday loans are rolled over within 14 days to repay previous loans.
These previous debts may include mortgages, overdrafts, bank or other companies’ cash loans, or unexpected debt from a dead family member. To avoid cases of auctioning or being taken to court, people take payday loans to cover these debts.
The best solution for this is to plan on loan repayment before taking them and keeping some savings to help in case of unexpected debts.

3

#3 Pay for Holiday Expenses

#3 Pay for Holiday Expenses

Christmas and birthday parties often leave parents frustrated. They want to make their kids feel loved by buying them the best presents and organizing the best parties. Others may even plan to take a vacation to a local or international hotel or beauty scene.
Their next option will be to borrow a payday loan to cater for these expenses. If not planned for, these expenses may lead to bad credits which increases your frustrations.
Getting an early plan for these events and their expenses often helps in these cases. Also, don’t try to get things that you cannot afford to avoid future financial problems.

4

#4 Pay for Their Medical Emergencies

#4 Pay for Their Medical Emergencies

Medical emergencies are common. It might not necessarily come from illnesses or other health issues. Accidents from vehicles, building collapses and other natural calamities have been frequently experienced.
If you are not a beneficiary of health insurance, these medical expenses can lead to financial tension. This makes people opt for fast payday loans.
To avoid these problems, get health insurance to cover for you and your family.

5

#5 Media Advertisement

#5 Media Advertisement

Companies invest a lot in media advertising due to their positive sales results. Websites, emails, phone messages, social media, and physical posts are part of the main advertising channels.
These ads and commercials inform the potential customers of awareness of payday loan companies, their fast approval, and issuance of the money. This arouses people’s interest in the item and opts to use it.
Despite having other loan options out there like banks, their loan approval process is long and often contains a lot of paperwork and questioning. Payday loans don’t have any paperwork process. Your loan request can also be approved despite having a bad credit score.
All these factors advertised in different mediums have made payday loans popular and lead to their increased usage.
It is important to note that the advertising channels are paid and hence won’t tell you the high-interest rates and other risks involved.

6

Conclusion

With the rising cost of living, money problems are also increasing. To solve these challenges, people often choose to use payday loans to pay their bills due to their easy and fast approval. However, one should be careful with them.
The secret to avoiding their high interests is to pay fast once you get your paycheck.