Payday Loans have helped millions of people
Millions of residents in ontario live paycheck to paycheck. They adjust their lifestyle so as to meet all the obligations with the available finances. A single unexpected expense like a bad health or a badly needed car/home repair throws their budget planning off the track.
Some of them turn to their friends or relatives for financial help while others ask the payday lenders for short term loans. Where friends/relatives may not ask for interest rates, but asking friends for money always has a side effect of hurting the relation one way or other. Here online short loans offer a better way out.
Some critics may argue that payday loans are expensive compared with other finance options of long term loans: example, $15 fee on $100 cash advance for 2 weeks that means 391% APR. But considering that these loans are offered for a couple of weeks, it is not appropriate to compare its cost with long term personal online loans ontario. A short term loan is also easier to obtain unlike other long term finance options which require more documentation and guarantee.
Critics of online short term loans mention the high cost of this finance option as a reason for borrowers not being able to payback on time and getting rollover again & again. However, industry regulators examine every aspect of any industry before taking any measures. Believing the truth that millions of consumers are getting benefits from these short term payday loans and have had favorable experiences, industry regulators are bound to believe it as an important lifeline for the middle-income Canadians.