Payday loan: Break the cycle and get help

The popularity of payday loans in Canada has become problematic as about 7 to 10 percent of the population has to use payday loans to cover all their expenses on a daily basis.

In addition, about 1 in 10 Canadians who go bankrupt do not only have payday loans, they usually have more than one full salary!

The situation usually happens like this: your rent must be paid right away but you do not have the money in your accounts, you have not done groceries this week and your car breaks down or your level gasoline has almost empty, but of course your next paycheck is due for in a week. Unfortunately, after all these vicissitudes, a payday loan seems to be the perfect solution since you will be able to get the small amount of money you need right away and then pay off the loan once you get your check from next pay. The hidden screw here is that the payday loan will then force you to get another one for the next week, then the next one, and so on and eventually, you’ll be stuck in a cycle that’s very difficult to break.

When you find yourself in the payday loan cycle, it may seem like there is no way out, but here are some tips to break the cycle, get help, and start building a portfolio. sound financial.

How to eliminate your addiction

How to eliminate your addiction

If you are stuck in the payday loan cycle and have decided that you need to get away with it, the first thing you need to do is eliminate your dependence on loans as much as possible, if not completely. Here are some things you should do:

Do not take a new payday loan every week; you will never be able to repay them and the cost will become more than financial.

If you desperately need money to pay your rent or something of the same importance, find an alternative loan. A personal loan from a private lender repayable in installments spread over a longer period of time is one of the best options.

If your money problems come from expenses for which you can not determine their origin, it will be necessary to make a budget or find a way to track each of your expenses. Understanding where you spend and how you spread your money will help you find places to save.

Start saving for an emergency or for your future. If you have some savings, then you will probably not be tempted to take payday loans.

Acquire help

Acquire help

Now that you are on your way to eliminating your dependence on payday loans, you will need help to pay off the remaining debt. The payday loan cycle tends to entice us and take us hostage. Going for help should not be considered a failure but an important step to success and get rid of this financial burden.

Consider consolidating your debt

Consider consolidating your debt

If you have several payday loans as well as other debts, a consolidation of these could be exactly what you need to break the payday loan cycle and become debt free. If you consolidate your debts, you will only have to make a monthly payment (and maybe even less) instead of making many different payments for many different companies.

Unfortunately, if you choose to enter a debt management program to help pay off your debts, most if not all payday loan lenders will refuse to participate. So, if you decide to consolidate your debts, you could be limited to these two options:

A consumer proposal: As an alternative to bankruptcy, you work with an administrator of a consumer proposal who will negotiate with the creditors on your behalf. This agreement is legally binding, protects you from collectors and will ensure that you repay a portion of your debts with a single monthly payment.

Bankruptcy: If you have decided that there are no other options for you, going bankrupt may be the best option. Make sure you have exhausted all other options and are ready to deal with the consequences.

Understand sess rights and freedoms

Understand sess rights and freedoms

It is of utmost importance that you know and understand your rights if you have or plan a payday loan.

While traditional lenders are governed by the Criminal Code of Canada, which stipulates that interest rates must be less than 60% per annum, payday lenders are regulated by provincial governments.

Every province in Canada has its own laws governing payday loan companies so make sure you get the right information for your province. For example, payday loans are completely prohibited in the province of Quebec, but in Ontario the Ontario Payday Loan Act regulates them.

Regulations to know

Regulations to know

The bearings are illegal. You can not get a new loan until you have paid off your current loan.

You must have a two-day grace period in which you are allowed to change your mind, and you will be able to repay the money free of charge.

A contract indicating the amount of money borrowed, term of office and all costs related to the loan must be provided.

The payday loan lender must provide you with the full amount of the loan without delay.

You may not be required to make payments before the due date.

The payday loan cycle may seem like impossible to break, but it is not. You must start by breaking your addiction and then ask for help as soon as possible. It can take a lot of time and effort to get there but it can be done to finally get rid of this financial burden.

Peer to Peer Loans {P2P} Understand How It Works

Peer to peer – ” lending mode where one person lends money to another without the intermediation of a bank or institution and investors can use their money to profit by borrowing with low interest and stable profitability.” Peer to peer loans, also called inter-personal loans or P2P loans, are one of the highlights of the new economy’s entrepreneurs and have changed the way one takes credit around the world.

While in the computer network the term peer to peer serves to designate an architecture where all the machines involved function as client and server at the same time, in the modern economy (financial system) the term is assigned to a ” peer to peer loan modality lending, where one person lends money to another without the intermediation of a bank.

Both in the internet and in the economy, the peer-to-peer concept is to put users at the center of the process and technological advancement. In people-to-people loans, user experience is simplified and transparent, interest rates are lower, and bureaucracy is virtually non-existent. In conventional bank financing none of this happens and that is why P2P   is gaining more and more space in the financial market.

Is it worth the peer to peer loan?

Is it worth the peer to peer loan?

Certainly worth it. Injecting external capital into a business brings a lot of benefits, and not always resorting to a loan is synonymous with business crises. Many companies may need capital to finance new projects, expand their brand or increase working capital. It is at this point that peer-to-peer lending becomes interesting as much for ease and access as for lower interest rates.

Who created loans between people?

Who created loans between people?

It all started in England in 2005. Andres Dilan is the co-founder of the Zopa platform, the first company to work with peer to peer loans in the world. For six consecutive years, Zopa has been awarded the Most Trusted Personal Loan Provider.

Today, with more than 10 years of operation, Zopa has already lent almost 1 billion and a half pounds. Today, some 54,000 investors lend values ​​ranging from £ 10m to £ 1m per project.

In 2006, two new P2P loan companies were founded, this time in the US: Lending Club and Lending Prosper. After that, new players began to emerge all over the world.

How do peer to peer loans work?

How do peer to peer loans work?

The peer to peer loans, as the name implies, are loans made from person to person. Thus, P2P is an operation where those who have money to invest lend to those who need it, without the need for interference from banks and financial institutions.

The peer to peer loans are a kind of collective loan. Its main objective is to enable borrowers to evade the abusive rates of banks and lending institutions while at the same time allowing investors to have a diversified portfolio of investments and to achieve above-average monthly returns.

Here’s how the peer to peer loan works in a few simple steps:

  1. The borrower accesses the desired platform and creates a credit request.
  2. If your application is pre-approved by the platform, it will be offered to investors in an online portfolio.
  3. Investors then choose whether they want to finance and how much they want to invest.
  4. If it is financed, the company then receives the loan amount from the registered account and the investors receive their monthly repayments.

Who can apply for a Peer-to-peer lending loan online?

Who can apply for a Peer-to-peer lending loan online?

Entrepreneurs, small and medium-sized companies, entrepreneurs, MEI’s and investors in Brazil are already participating in the peer to peer lending modality. Countries like England, the United States, China and Canada are also betting on this idea.

Peer-to-peer loans support everything from a small merchant from Curitiba to a children’s school in Rio de Janeiro or a game developer in São Paulo. In relation to investors, most platforms do not have as many requirements and to participate is enough to be over 18 years, have a checking account and a minimum reserve of money.

Even so, not all people can be credit takers or investors. Each platform has its requirements and to know if you are able to request a loan or to lend money, it is necessary to check the specific rules of the chosen platform.

P2P Loan or Bank Loan – Which is the Best?

P2P Loan or Bank Loan - Which is the Best?

Briefly, the big difference between peer to peer loans lies in three aspects:

  1. Interest Rates
  2. Bureaucracy
  3. Speed ​​in lending

Although the traditional bank loan is the best known and most widely used credit facility, it is hardly the best option for small and medium-sized enterprises. Moreover, even when the company can afford the bank’s abusive interest, the credit granting will be slow and will accompany many bureaucratic processes that will leave anyone with the hair standing.

On the other hand, in P2P, the platform connects people who need credit and investors who want good returns with much more ease and agility. The process, in addition to being performed 100% online, is much less bureaucratic than in a bank. Obtaining the loan amount depends only on platform pre-approval and investor interest.

Note : With all this information you may want to know which companies make peer to peer lending loans in Brazil, and if you have a company what alternatives to online business loan platforms and we have listed some of the best platforms for investors in P2P loans.

Choose the repayment term of a loan

Housing Savings operations are regulated by the State. Upon subscription, the terms of the savings phase and the loan phase are determined contractually. The calculation of the loan entitlement for an ELP or CEL is done by combining the chosen repayment period and the interest earned . Explanations with our credit experts.

An identical calculation mode

loan calculator

The calculation of the right to home loan savings is done in the same way on an account or on a plan. During the savings phase, the borrower accumulates interest based on savings. They determine a loan amount based on the chosen duration. The principle is simple: the shorter the duration chosen, the greater the amount of the home savings loan .

So you can choose to repay between 2 to 15 years but know that there will be some constraints. Indeed, this type of credit is usually shorter than the main loan, which sometimes has a heavy impact on monthly payments. To avoid this, it is possible to smooth out the principal loan and the housing savings loan.

Numerical examples

money savings

Take a few examples of a 4-year savings period with an ELP opened on 1 July 2009. In all cases, the holder makes an initial payment of € 500.

In conclusion


It can be seen that savings of € 100 a month give relatively low results. On the other hand, the choice of a term of less than 10 years involves repaying deadlines that may ultimately be too important for the borrower.



Loan Public Service Settlement (With Special Conditions)

Loans for civil servants and civil servants are a term that crops up again and again in connection with loans. At the same time there is no ” credit ” for civil servants or civil servants. It is rather a name for loans, which are awarded for this professional group at lower interest rates. Civil servants and civil servants, like all other consumers, are quite likely to need or want a loan. Be it because the car no longer comes through the TÜV, either because it is simply the desire for a new kitchen. However, taking a loan of any kind would be the wrong, because more expensive solution. Civil servants and civil servants receive loans with significantly better terms .


Comparison – calculator

Comparison - calculator

Credit Calculator Public Service – Use is free and you can request a non-binding offer directly from the cheapest bank.



Why is a loan for civil servants and civil servants cheaper?



  • Comparison – calculator
  • recommendation
  • Why is a loan for civil servants and civil servants cheaper?
  • What is a loan for civil servants and civil servants?
  • Without Schufa
  • Soldiers, teachers

Banks check the creditworthiness of their borrowers and calculate lending rates based on their credit rating. In the credit check, the financial circumstances, the family situation, but also the professional position with a. Construction workers get a weaker scoring because the construction industry is considered difficult; losing a job in winter or getting bad weather money can affect the ability to properly repatriate the loan.


The situation is different with civil servants. Officials are non-terminable if they commit no offense. This job guarantee ensures that the borrower always has the appropriate income to pay his installments. Although civil servants are not non-terminable, they also have a safer job than workers in the private sector.

Public service employee groups include post office workers, soldiers and temporary soldiers, teachers, police officers, federal office workers, nurses, and many more.

What is a loan for civil servants and civil servants?

What is a loan for civil servants and civil servants?

As mentioned earlier, there is no specific loan for civil servants. These terms and conditions, which are more favorable to other borrowers, exist for all types of installment loans:

  • Classic installment loan for free use
  • car loan
  • credit without
  • instant credit
  • Conditional also on mortgage lending

Anyone who is civil servant or employed in the civil service should always, and in principle, select the official loan in the context of a credit comparison, regardless of the reason for which he needs it. This is the only way to ensure that he secures himself the lowest interest rates as a borrower.

A loan for civil servants can be earmarked as a car loan or as a loan for free use. The terms are as for loans for employees from the private sector up to 120 months, the volumes, depending on the provider, usually up to 80,000 euros.

Without Schufa


You can find a loan for the public service without Schufa in our overview of providers of loans without Schufa examination .

Soldiers, teachers

Soldiers, teachers

The ABK loan presented above is also intended specifically for soldiers and teachers.

  • Credit for teachers :
  • Credit for soldiers :

To accumulate two loans Housing Action when there are 2 borrowers

It is not uncommon for a couple of borrowers who meet all the conditions to qualify for the employer loan to get help on their own. The right to the Action-Logement loan (called since 2010) is indeed attached to the employee and not to a real estate project. However, restrictions may be imposed by the collecting company or body in the attribution rules .

Reminder of the conditions of obtaining

housing loan

As part of the purchase of a home, it is possible to obtain a maximum loan of € 10,000 to € 25,000 depending on the sector of acquisition (the amount may be increased if you are the object of a professional transfer ).

If you are a couple and you benefit from two employer loans, please note that their respective amount must not exceed one third of the purchase price, including notary fees. This amount is limited to € 10,000 for renovations.

Concerning the employee

To benefit from the employer loan, you must work in a company with more than 10 employees. Your income must be less than the Social Rent Locative Accession ( PSLA ).

Note : persons retired for less than 5 years and non-salaried workers who rent social housing can also benefit from it.

Regarding housing

Regarding housing

The dwelling must be used as a principal residence. If you are a homeowner and considering a job, the job must meet one of the following requirements:

  • To enter the framework of the works subsidized by the ANAH the National Agency of the Habitat.
  • To be aimed at improving energy performance
  • Bring on expansion (of at least 14 square meters) or improvement of existing dwelling .

Note : the employer loan can be used to redeem the spouse’s share in case of divorce.

The decision belongs to the entrepreneur

The employer freely decides to allocate all or part of the available envelope to rental housing or to home ownership.

Thus, in the case of joint applications by a couple of borrowers , the request may only result in one of them because of the policy pursued by one spouse’s business (allocation of funds rental assistance).

On the other hand, be aware that it is possible that by the time you make your request, the available envelope has been distributed in full.

money borrower

Finally, the rules of attribution flat to the head of company, this one can entirely decide to refuse the aid to the borrowers whose husband would already benefit from a loan Action Housing. It is therefore necessary to inquire with the company to know its policy of attribution in matter of employer loan.

An example of attribution: employees of the electric and gas industries

Action Logement loans for the 170,000 employees of EDF or GDF are managed by Cigere Energies. The share allocated to home ownership is reserved for a first-time homeowner (except in the case of a professional transfer in a new geographical area). Some of these aids are called ” open rights “, ie they do not require any agreement from the hierarchy.

  • Tenants : access to social rental housing, guarantee and advance Locapass
  • Owners : financing of works up to € 10,000 (€ 16,000 if adapting housing to people with disabilities)
  • Candidates for accession : loans up to 35 000 €.


Justify a refusal of loan to the notary and recover the deposit


The payment of a deposit is subject to strict regulations. If you have signed a promise or a notarial sale agreement , the latter is entitled to ask you to pay a first sum (usually between 5 and 10% of the purchase price). On the other hand, if the pre-contract has been signed under private signature (between you and the seller), the Act prevents the seller from requiring any payment until the 7-day cooling-off period has expired (1).

(1): the period begins to run the day after receipt of the documents.

The suspensive condition for obtaining a loan

The suspensive condition for obtaining a loan

Whether you have paid a down payment or not, the Scrivener Law protects you if you use one (or more real estate loan (s) to finance the purchase of the property.) Each characteristic of the loan must be included in the compromise. to know :

  • The nature of the loan (s) sought
  • The duration
  • The maximum rate that may be accepted by the borrower
  • The amount

For the suspensive condition to be valid and you can recover your deposit from the notary, two conditions must be met:

  1. That you respect the deadlines imposed by the preliminary contract (deadline of filing of file and time of obtaining the preliminary offer of loan)
  2. That the characteristics of the loan (s) requested are in all respects in line with those specified in the compromise.

Good to know : the suspensive clause is a condition of fact, which means that it has a legal existence even if it did not appear in the compromise.

All about clauses

Attention to refusals of convenience

Attention to refusals of convenience

The law punishes those who resort to a refusal of convenience . Although it is difficult to prove that a loan refusal is motivated or not by valid reasons, know that in case of legal procedure, the bank will have to justify its decision. In the event of conviction of the borrower, the suspensive condition for obtaining a loan may then be deemed fulfilled. The deposit paid is then lost. In some cases (very rare), the seller can force the buyer to respect his contract and thus to buy the good.

What time to recover his deposit?


As soon as the bank has notified you of its refusal of loan, require that it issue you a written certificate and transmit this certificate to the notary and the seller, by registered letter with acknowledgment of receipt.

Remember to ask the bank that it specifies on the certificate the characteristics of the loan refused (amount, rate, duration). On the other hand, the reasons do not have to be disclosed and are part of banking secrecy.

The deposit paid to the notary has probably been placed in an escrow account. The Article L. 312-16 of the Code of precise consumption when the suspension clause could not be made, the deposit shall be refunded in full without charge, at the latest within fifteen days, under penalty of produce late interest on the basis of one and a half times the legal interest .