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Why should I avoid cheque-cashing or payday loan services?

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People who use these services often do not have a bank account. Or they may have run short of money and need help until they get to their next payday. But using cheque-cashing or payday loans can lead to serious problems: 
  • Fees for these services are usually many times higher than the fees that a bank charges. So you’re paying a high price to borrow.
  • If you borrow money to get through to your next pay, you will have to pay it back, with interest. This means you will have less cash to spend when you get your next pay. So, you are more likely to run short again. You may find you need to use the payday loan service over and over again – which can add up to more and more debt. 
For more information on these types of loans, review The Cost of Payday Loans report from the Financial Consumer Agency of Canada. If you are having financial problems, take steps now to get help before you get into deeper trouble. Visit the Credit Counselling Canada web site and find out how you can get free advice.


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[7] Why should I avoid cheque-cashing or payday loan services?

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