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The 'overwhelming burden' of the payday loan cycle
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- เผยแพร่เมื่อ 18 ก.พ. 2019
- Doug Hoyes, licensed insolvency trustee at Hoyes, Michalos & Associates, discuss the increase in the number of heavily indebted Canadians turning to payday loans to relieve debt.
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Pay Day loans = giving a drunk a drink. Most of the time, debt it the symptom of the problem....Start teaching basic money management in school, instead of most of the useless courses that are mandated.
A.) Didnt start becoming mandatory till high school in like 2010
B.) My teacher for the course, "i uhmmm dont have like a budget but like half of it would be starbucks!
The teachers until college arent trained well enough to teach the course
If money management was a course, kids would not pay attention to that either. Blame PARENTS. PARENTS should be well versed enough to teach their children that our they shouldn't have kids.
been stuck in the loan cycle close to 2 years. getting my income tax refund here right away. getting enough to pay off mine and my wife's loans. so glad to be done with these, never going back.
Gladly you did, I deepened in loan shark for years without finding any way out
Stay out of situations that would cause you to use them. Up your bread chief.
There is never a good reason to accept a payday loan. Whatever emergency you think you’re avoiding ends up not being as bad as the emergency you create with the loan.
AMEN 🙏
@@devintaylor8702 stupid obsessive jehovah witness. This not relative to bible, go back to your Apes cave
Stfu.. there are a couple of good reasons. I can think of 4 good reason. I personally use a payday loan as a bridge. I ended up paying minimum interest, I think it was 13 bucks interest on a 1500 loan
This isn't true. You don't know ever situation. I've never had to use a payday loan but I know that some financial crisis are so urgent that it necessitates using alternative means to get the capital. If there was no demand there would be no supply.
@@dannydee9919although I agree with you please calm down. You would never talk to someone in real life like that so please have some decorum online.
Payday loans should be banned
Listen to the story again, payday loans are not where the problem starts from, they are just the grand finale. The problems start from much more respectable lenders giving out loans to people who are not really credit worthy to begin with. And why are banks handing out money to people who might not pay it back? Because they have already loaned all the money they can to everyone else and they still have plenty left over. That's how banks make money after all, by lending out as much as they can. But how come banks have so much free money that they can afford to lend to subprime debtors? Well that starts with easy monetary policy from the very top. But that can't be changed without triggering a recession and no politician is up for shooting that particular bullet in his own foot. So it's free money to everyone, up until the point when economy chokes up and dies under the debt burden. And then we'll try to patch it up by pumping more free money into the system and everything will be alright again.
what would the stupid do with their money?
Payday loan, can you say shylock. The rates they charge are usury. Once these lenders get their hooks into you, you will never be out of debt. These outfits should be controlled as to what they are allowed to charge. A 60% per anum rate of interest charged is nuts. But a 390% interest rate is more than the mafia charges. These outfits are preying on the poor and they know it. Let's face it interest rates are at record lows worldwide. There is no reason to allow these rates provincially.
idiots
You do know most payday loan places only make 10% profit? They exist because the demand is there. They loan to the least credit worthy individuals. If they charged less interest they would all go out of business and those customers would have no where to turn.
All debt can be dangerous. It's up to YOU to use it correctly. Only adults take out loans, no?
390% is the simple interest rate. $15 times 26 biweekly periods and assumes you pay the interest biweekly. Assuming the interest is not paid bi-weekly and gets added on to the principle, the effective compound interest rate is 3,724%.
@@theoneafterthelast "Most" only make a profit of 10%. I wonder what the others make? When I first did the calculation of effective annual interest rate, it was 14,299%, but then Alberta lower the rate to $15/$100 for two weeks and the rate went down to 3,724%. I know the industry had Ernst & Young do a paper to justify the 14,299% to ensure they were profitable. I guess they will have to survive on a minimum of 10% return. I wonder if the number of outlets has come down. There were more payday outlets than McDonalds and Starbucks combined before.
@@pgbrandon some make less some make more... sort of like every business... ever.
The things is businesses should be able to loan money at any interest they want. If it's too high be smart, go somewhere else, or don't get a loan.
The type of people who take shitty loans are the type of people who would only be offered that money under that condition.
Don't do it its not worth it
Instead of people who buy lunch at work, pack your own lunch. You will save like $8 per night/meal
If the economy is doing so great, why are people taking payday loans?
stupid
I want to get rich and stand outside one of these just handing out money for people to pay of their loves and cover what they lead so the pay day loan goes bankrupt
You would ensure the companies get the money they are owed. Look at the financials of these places. They're not bad or evil, they loan to people with the worst credit. You take on that risk and you'll see.
These should be made a public service as part of a gray aria support service for people who are stuck or so low functioning they don’t understand what’s going to happen to them
Most people are not aware of what's going on, still living in a manufactured reality! It is not business as usual! But it is very rare that you are allowed a glimpse of the real situation so think about it!
Most people are so desperate to have a place to live or food, it becomes a survive or die situation! Next month doesn’t matter, it to live or die today.
Ouwt! Very distinctively Canadian.
If you have pay day loans you aren't managing your debt. You're in a terrible situation and only making it worse.
why doesn't the government just make it illegal for these payday lenders to operate and just put them of business? problem solved!
Problem solved! What about people with such bad credit ratings that they have no access to any other loans?
@@zachb1706 thats easy , you make it illegal for anyone to perform any credit checks , therefore people giving loans would not be able to perform credit checks so everyone is on a fair playing field.
@@rayn1ful are you a troll? Honestly.
This is just so stupid. The point of a credit rating is to grade how good you are with money. A bank doesn’t want to and shouldn’t give loans to people who have no chance to repay them.
@@zachb1706 now that i think about it it wount work , however i dont like payday lenders and other places taking advantage of people because they have a bad credit score, sometimes charging them ridiculously high interest rates , i dont want that to happen to anyone and i think there should be stricter laws to stop it . If that makes me a troll well so be it .
@@zachb1706 i listen to Dave Ramsey , and he says people good with dont have a credit card because they are smart enough not to swallow that bologna from the credit card companies , doesnt say it that way but thats basically what he says .
In my humble opinion, payday loans are like a scenario of robbing Peter in order to pay Paul, only multiplied by 5 or 10
Exactly
Champagne taste with beer money
The word is OUT. not oot
It’s right out extortion!!!!! Payday lenders don’ care about their customers. I got one once and I never paid forget q penny loll. It’s been 7 years and I’m debt free.d
How can I avail the loan 100k ma'am and sir?
Payday loans are NOT the only companies exploiting the poor for profit. Healthcare industry does it. Employers do it. Luxury companies do it. Necessity companies do it
Why are there so many insulting remarks about people taking PayDay Loans? These comments are obviously from people who either live with mom and dad or never worked hard in their life and faced struggles...with the high cost of living, even if you have 2 jobs, and sky-rocketing rent of course people will go to these PayDay Loans companies ...especially if the bank keeps saying no to personal loans.
Then the cycle comes of paying the loans back and falling into the debt of the interest charges so they re-loan again so they can EAT.
Also...if your company does not cover sick days if you become ill and lose pay and..yes I don't like them either but with the situations people face there is sometimes no other choice. Most of the people who take the PayDay Loans are working class people facing hard times...to criticize these people is Stupidity in itself.
Well one must ask, how you allow yourself to get in such a horrible position in the first place. You will realize you have nobody to blame but yourself. And if we don't remind people of their mistakes, fools will continue to make them. Thatsbwhy it's important to criticize poor decision making. Even if it makes people uncomfortable.
@@maximusm0104 that's totally WRONG what your saying....people get into these loans because the banks say no to most of them so do the credit card companies....so they resort to Pay Day Loans...most cant get out of the payday loans because the cost of living getting too high and they suffer a sudden cut back or a wrongful demotion at their job...Payday Loans paid for my groceries when I could not afford them after being in the hospital and paid for my rent when I faced eviction and a demotion from my job due to discrimination from my boss post 9/11...and YES I worked a second job too during those hard times so in which that company went bankrupt. Most people who resort to them are struggling working class...its easy to judge when you have not been faced with these challenges.
@@adrian2navindra well, what foolish decisions led to you being in the hospital? And what decisions could you have made to get a better housing situation? You can't surpress a reasonable arguement because the presenter just because the presenter hasn't been in your shoes. I work 2 jobs and after food and gas, I invest everything else straight into stocks. So yeah, my life is well, because I make sure it is going well. However, once you fail, it is easier and easier to keep failing. Vice versa with success.
@@maximusm0104 Well, that's a FOOLISH answer you gave...when your appendix is inflamed your going to the hospital...you should try it sometime....and my living situation isn't always in the control of the tenant...my apartment got bought by a corporation and they jacked up the rent 28%...and yes I fought them in court 4 times and lost as they tried to evict me for them losing my rent cheques which is a tactic to evict a tenant for a higher paying one...I still had to pay court fees for them summoning me to court and lose another day pay...again your speaking from a lack of experience regardless of this bragging of Stocks and bonds which you cannot do when if you were faced with these set backs and challenges that many working class do...get some experience and you will learn instead what people go through
instead of praising your wonderful family support.
@@adrian2navindra sure there is an element of randomness to everyone's life. It sounds like you've had it rough, but are you going to tell me that every single homeless person or poor person is like that? I'm not trying to kick anyone below me at all. I'm simple saying, that in a general, people towards the lower ends of life tend to have made more bad decisions along their path. If you said you were struggling because you had a kid at 17, and chose to drop out of school and sold drugs, id say you have nobody to blame but yourself. I sympathize with those who really were just dealt a shitty hand, but vice versa, there were people who were dealt shitty hands and turned themselves around. Not praising myself, only trying to take advantage of and make sure I don't have to go through that struggle, as anyone should.
Scarcity mindset begets impulsive behaviour
amassix ?
Pay day loans pay it back for some moans tones I tunes my tunes I borrowed never payed back scroll scrallah hit em in the back tests the solution wash money time for evolution revolution give mi mail African or Indian cora brunch show mi some tail ox letter I'm better smell chedda cheese trick near Aaron's fare pair again near Batista booster juice for beetle boost now you see I tried so hard edit 3dit!
If I could burn 🔥 to the ground every Payday loan place... I would. These places take debt slavery to the MAX. Horrible, Horrible, horrible. If you’re reading this, PLEASE never ever take a payday loan. Find another way. Sell something.
These places also help people too. Don't just concentrate on the negatives
brainwashed into stupidity
Help them stay trapped in debt. You don't "help" someone by ripping them off
You don't help someone by charging them ridiculous interest rates. There is NOTHING good about these things.
If I actually ran a payday lender I would run it as a nonprofit noncharitable enterprise entity which only charges enough interest to cover costs and doesn't much advertise.
Helping people!? Are you out of your f'n mind!? You probably manage one of those shitty, scummy debt trap "businesses" if you feel that way about it. Get out of here with that BS.