Payday loans are under a lot of scrutiny these days, especially in Alberta. For Edmonton payday loans, there is no shortage of information available, but how much of that information is actually honest and relevant? Sadly, not much. So what is a payday loan, what should it be used for, and what should it not be used for?
A payday loan should only be used as a way to meet a small and unexpected financial requirement. Payday loans are quite common in Canada. However, payday loans are often misused. The reason is because the purpose for taking such a loan is misunderstood. There are people who use payday loans to pay off long-term debts or pay off utility bills. Participating in this method can result in falling into a vicious cycle of continuing to take out payday loans with bi-weekly regularity. The loan essentially keeps rolling over and over again, and can actually result in paying more in interest charges than the principal they had borrowed initially.
How many payday loans can I get?
Although payday loan regulations vary in Canada from province to province, technically a borrower is not allowed to take out more than one payday loan at a time. However, some Canadians do try to get around the rules and are able to ascertain more than one active payday loan. It is not financially responsible to do this though and can have significantly negative implications for a person’s financial health. Here in Edmonton, payday loans have new regulations that should make it impossible to have more than one payday loan at a time. This is a good step in consumer protection and we at Cashco Financial fully support it.
But getting a second payday loan in other provinces is not impossible. There are some organizations which may still lend you a second payday loan although the cap or limit on the amount you can borrow may be lower. For example, if the cap on the first payday loan is $1500, it may happen that getting a second payday loan would lower the borrowing limit to $500. It is Cashco’s opinion that those organizations which issue two or more payday loans to an individual simultaneously are practicing irresponsible lending and should be stopped. This is because once again, the merits of a payday loan are to have a fast and easy cash infusion on an occasion when a person absolutely needs it. Payday loans in are short term loans for a short term cash shortage and are certainly not the answer to a long term financial issue.
Alternatives to payday loans
If you are planning to take a second payday loan to meet your monthly expenditure or to refinance another debt, there are much better alternatives available to you. The best alternative to a payday loan is to take a Flex Loan, which is long-term installment loan that has a much lower rate of annual interest. Cashco Financial is a well renowned financial creditor and lender operating in Canada with our headquarters in Edmonton, Alberta. We are Canadians and we care about Canadians.
Our Flex Loans allow you to borrow up to $5000 with a term of 36 months to pay back your loan in affordable installments. The qualification process is easy and very fast since we only perform soft credit checks so your credit score is not affected. You just have to provide your income details and valid identification documents so we can get your flex loan approved quickly.
Flex loans allow you to consolidate all your other debts and loans into a single loan. The rate of interest is low and as a result, you end up paying much less than you would have paid on all your individual loans. The chance of getting your flex loan application approved is very high even if you have a bad credit score. Moreover, the payment history is submitted to the Credit Bureau so every on-time payment helps improve your credit rating.
Flex Your Finances With a Cashco Flex Loan in Edmonton Today!
If possible, always choose a flex loan over a payday loan. Long-term loans like flex loans are much better for consumers than short-term loans like payday loans when dealing with a prevalent financial shortfall. Be sure to consider all the possibilities before taking payday loans or flex loans and find what works best for you because we all have different financial needs.