As a bankruptcy trustee here in Toronto, I see many people throughout the week who have different types of financial difficulties. My goal is help each person I meet find a solution to their money problems. How much I can help often depends on the seriousness of the debt problems. I know from experience that if a person’s debts include payday loans, the situation is pretty bad.
Payday loans are an easy fix; too easy. Here’s what I see, all too often: Something happens in your life; the car breaks down, a bill has to be paid, or something else you consider urgent. You don’t have any savings to draw on. You say to yourself "all I need is a small advance on my next pay cheque to cover this, and then everything will be ok". You go to a payday loan shop, the paperwork is simple to complete, you get your cash, problem solved. And that’s when the real problem starts. Your payday comes and you find your pay cheque going to pay off your payday loan. Now you don’t have enough money for rent, groceries or other basics.
So, how do you fix this problem? Wait; how about another payday loan? Get the picture? I haven’t even started to talk about the fees and interest rates that are charged. They border on the criminal.
So what advice do I have for you? The same thing that we were told years ago when we were lectured on drugs by our parents and teachers: “JUST SAY NO”.
Sounds pretty simple, doesn’t it? The best advice I can give you is if you find yourself in this type of financial crisis, gets some help from a professional. There are solutions, including debt consolidation loans, debt management plans, consumer proposals and, finally, bankruptcy. I know that a payday loan is not the solution for your money problems; to find out which solution is right for you, call our office in Toronto at 310-PLAN, or e-mail us for more information.
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