• Pay Day Loans

    There are a lot of quick cash loan places out there. Before they became somewhat regulated in numbers, there seemed to be one on every corner in Hamilton. They were almost as prevalent as Tim Horton’s restaurants! The sheer number of them showed the demand that was out there for them. There are 2 main types of debt: secured and unsecured. Secured debts are loans that have some kind of “collateral”. Something the lender can use to recover their money if the borrower doesn’t pay. This security could be a home or a vehicle. A mortgage or a home equity line of credit (HELOC) is secured on a property. An unsecured loan has no such collateral. Generally the terms (rate, fees, etc.) for a secured loan are much better than for an unsecured loan. Why? It all comes down to risk. Unsecured loans are riskier for the lender so they make up for the defaults by charging exorbitant fees and rates. Examples of unsecured loans are pay day loans, personal loans, credit cards, etc.

    It is best to avoid unsecured debt as much as possible. So when you visit these pay day loans, make sure you understand not only the rate that you are paying, but the APR (annualized percentage rate). Why? Because the APR takes into consideration the fees that are being charged. Make sure you also understand the costs involved to EXIT such a loan. We have done many mortgages where our clients had fallen into the trap of pay day loans and it cost a small fortune to pay them out.

    So please please, if you are desperate for cash and you own your home, talk to us first and we will tell you your options – no obligation and no charge whatsoever.

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