Monday, 30 May 2011

Payday Loans Cash Advances Do NOT Build Your Credit

The majority of people who turn to expensive payday loans do so because they have credit problems and no one else will give them a chance. The problem is that payday loan cash advances do not build your credit. In fact they do not report to your credit report at all.

p>The only information that directly affects your credit report is loans, credit cards, lines of credit, store cards, collection items and judgments. If you are turning to payday loans because you have taken out other credit and made late payments or defaulted, you have to first deal with your bad credit/debt before you can begin to rebuild.

Payday loans are not the answer and actually will make your financial situation worse due to their expense.

There are many ways to deal with debt:

Debt consolidation
- Credit counseling
- Credit settlements and proposals
- Bankruptcy

Some of these options seem more daunting than others but each is tailored for a different type of person in a different type of situation – each should be looked at with equal consideration if you want to make informed and effective financial decisions.

Approaching these companies directly will only result in a “sales” pitch, each will try to convince you that their choice is the best. So how do you make informed decisions? Invest some time and do some research. Use search engines like Google to learn about your options.

Consider hiring an unbiased Financial Consultant who can answer your questions and help guide you in the right direction based on your personal financial goals. This will save you a lot of time, money and sales pitches.

In the event that you are going to consult a Financial Consultant, be prepared. Plan your budget and gather all of your credit card and debt statements so that you can have a well-informed discussion. Beware of counselors who charge up-front fees. A good financial consultant will not charge you anything to consult you about your finances.

If an unplanned expense was what led you to a payday loan, review your budget and consider how you can set aside savings so that you have a safety net if you run into problems in the future. If you are buried in debt and there is no room in your budget to save, then you have no choice. Deal with your debt immediately so you can achieve financial health now and going forward. For more information visit

Tuesday, 24 May 2011

Payday Loan Lenders Drive Those Who Have Financial Problems Deeper Into Financial Trouble

Payday loan lenders help people who have financial problems fall deeper into financial turbulence by offering these expensive short-term loans with virtually no credit approval process.

Looking at the current economic collapse in the US, it is clear that one of the root causes are lenders who are granting loans to individuals who don’t qualify. This has led to a massive credit crisis.

More often than not, consumers who get caught in the payday loan cycle experience a credit crisis of their own. Payday loans are granted to individuals who can provide a paystub to prove that they are gainfully employed. That is the only pre-requisite.

In many cases, if approved, the consumer can borrow up to 100% of the amount of their pay. This amount has to be repaid in full on their next pay period in addition to a large fee (often 20%-25% of the loan amount). Many times consumers who are caught in the payday loan cycle will go to multiple payday loan providers, taking out multiple loans. Payday loan companies will continue to lend them money, willfully ignoring this information.

If you continue to roll over your loan for a few months, you will implode financially. In spite of this, the payday loan company will still make a massive profit from you, even if you default on the final “roll over” or “loan”.

This disturbing trend is what took place in the US and is quickly becoming an epidemic in this country, affecting thousands of Canadians. Despite being a regulated industry, payday loan companies are still doing little to prevent individuals from taking out multiple payday loans at one time. Nor are they reducing the amount that they lend or their fees. Instead they continue to profit and thrive on the backs of hard working Canadians.

If you are in the cycle you must break it, before it breaks your finances. It is a scary position to be in because you can anticipate that if you can’t pay, the payday loan company will send you to collections or call your employer, causing humiliation. They will do exactly that, if you simply default.

The best thing to do is have a plan. There are a number of programs that have been made available by the Federal Government to protect people that are suffering due to payday loan debt. These programs protect you and your privacy. They stop the payday loan companies before they have a chance to alert your employer, embarrassing you at work.

There are solutions; you just have to reach out and seize them. For more information about how you can get rid of your payday loans visit

Monday, 16 May 2011

No Payday Loan is Worth the Fees the Payday Loan Companies Charge

Payday loan companies charge very high fees for their short-term loans. Even the cheapest payday loan providers in the industry cost significantly more than other credit products.

How do they get away with this? By offering really convenient access to small short-term loans to ANYONE who has a job, regardless of the borrower’s credit history.

The formula is simple, if you can provide a payday loan lender with a copy of your paystub; they will in many cases lend you up to 100% of the amount of your pay.

These loans prey on those who find it difficult to make ends meet or who struggle with debt. Middle class families are strapped and so an unexpected expense like a car repair or medical problem could tempt a person to take out a payday loan.

Generally if you have considered a payday loan, it’s because your bank won’t help you and you have exhausted all your other options.

If you’re bank won’t help you consider the reasons why. Do you have a lot of debt? Have you been making late payments? Do you have a bad credit history? Do you have high housing expenses?

If this sounds like you, don’t resort to a payday loan. Answering yes to any of the questions listed above means it’s time to take a good hard look at your finances.

If you have too much debt, why would you add more? If your budget is so stretched that you are only making minimum payments and considering a payday loan, you really have no choice but to explore the root cause of your problem, your debt.

It’s funny how debt can accumulate over time and in the blink of an eye, it is out of control. When debt gets out of control, worry and stress set in. The worry and the stress revolve around credit, homes, cars and the lifestyle that we have become accustomed to.

How can one get control of his/her debt and avoid a payday loan? It all depends on the severity of your financial problems. The issue is that most companies who advertise debt consolidation services are often nothing but debt counselors and bankruptcy trustees. They use the phrase, Debt Consolidation, as a guide to get you to call.

The simple truth is that the Federal government has made a number of programs available that can freeze the interest on your credit, reduce your debt dramatically, offer you a single payment and do not involve filing for bankruptcy. To learn more about these programs please visit

Monday, 9 May 2011

Online Payday Loans are Convenient but can also be Dangerous

Payday loans are credit products that have emerged only in recent years. Payday loans are short-term loans (usually $1,000 or less) that must be repaid by your next pay period. The costs of these loans can be exorbitant. Depending on the payday loan company, a $1,000 loan could cost as much as $250 to borrow for only two weeks!

Due to the escalating costs of such loans, payday loan companies have become a regulated industry. Some insiders have stated that perhaps these companies should not even exist. Payday loans have become even more readily available and an approved individual can obtain an online payday loan through a variety of payday loan companies.

As you see, payday loans can be the beginning of a vicious cycle. Case in point, here is an example of how quickly a seemingly small payday loan debt can turn on you, sending you into a financial tailspin.

1. A woman who earns $1,500 net bi-weekly finds herself embroiled in an unexpected financial issue and in need of some short-term cash, at which point she turns to a payday loan provider.

2. The payday loan lender grants her a two week loan for $1,000 and charges her a $250 fee to borrow the money.

3. Upon receiving her next paycheque, she is required to repay the payday loan lender $1,250. Taking into consideration that her paycheque is only $1,500, after paying back the payday loan lender she will only be left with $250.

4. With rent to pay and children to feed, it quickly dawned on her that going to a payday lender was a bad idea. With few options available, she decided to go back to the payday loan company to extend the loan another 2 weeks at a cost of $250.

5. This put some money back in her pocket, but it still leaves her short. She decides to take out a second small payday loan in the amount of $500 to make ends meet. This loan will cost $100 to borrow the money and is due on her next pay period.

6. By her next pay period she now has two payday loans to repay – one for $1,250 and the other for $600, bringing the total debt to $1850. Her paycheque was for only $1,500, thereby leaving her $350 short. Even if she rolled these loans over, she is still short and can’t even cover their fees. Thus leading her to take out a third payday loan.

We see individuals who are less than $10,000 in debt but because it is payday loan debt they are considering bankruptcy.

If you are in this situation, you should not disregard it. It is serious and must be dealt with immediately. There is good news; there are programs that have been made available by the Federal Government to help people that have fallen into these payday loan traps. These programs often do not involve bankruptcy and can put an end to the destructive payday loan cycle.

Avoid online payday loans all together and contact DebtCare at 1 (888) 890-0888 or visit us online at

Tuesday, 3 May 2011

Is Your Bank Account Frozen Because of Income Tax Debt? Learn Your Rights and Choices

If the Canada Revenue Agency has sent you a notice titled “Requirement to Pay” threatening enforcement action or mentioning your bank, chances are they are going to freeze your bank account. A “Requirement to Pay” should be taken seriously.

If the Canada Revenue Agency freezes your bank account, your bank will be obliged to send any money that’s in the account directly to the Canada Revenue Agency. Once your bank account is frozen by the Canada Revenue Agency a number of consequences come into effect:

1. Direct debits and payments, such as mortgage payments and other payments to creditors, will bounce.
2. It will cause considerable damage to your relationship with your bank.
3. You will lose all of the money in the account.
4. Banking going forward will be difficult and challenging, everything will have to be moved to a different bank, and you will have to start from scratch. This can be especially disruptive if it is a business account.

If you have received a “Requirement to Pay” by mail, and your account hasn’t been frozen yet, you should act fast to protect your money, along with your financial relationships. If your account has already been frozen, there are still options open to you.

The first thing you should look at is the total amount of the tax debt, and then balance the debt against your total financial situation. If your financial situation is dire, your choices may be limited as opposed to having assets or savings that could be leveraged to pay off your tax debt.

For those of you who are in dire financial straits, there are programs that have been made available by the Federal Government that can help you get out of debt and stop the Canada Revenue Agency collection action. This includes stopping the Canada Revenue Agency before they freeze your bank account. In the cases where they have already frozen it, the result will be the freeze being lifted.

The trick is choosing the right program for your specific financial situation. If you have an abundance of equity in your home or in investments, you may have to bite the bullet and use it to raise capital to pay your tax debt. If you have no assets or investments but have a good income and reputation, you don’t want to make bad financial choices that humiliate you at your workplace. If you have limited income, no significant assets, you are in a completely different boat.

The bottom line is, regardless of your situation, if you are facing collection action by the Canada Revenue Agency, you would benefit from the expert advice and guidance of a DebtCare Financial Consultant. Keep in mind, you control your financial future and that future is dependent on the choices you make. For more information visit or call 888-890-0888.