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Payday loans Alberta
There are different expenses that occur in everyday life. Sometimes you run into surprise expenses that you have not budgeted for which demands that you go in for a loan.
If you find yourself looking for quick funds from a lender, then payday loans Alberta are the best solution for your short term financial problems. There are several payday lending agencies available there for those who need them.
When it comes to payday loans Alberta and other provinces everyone has their own regulations governing it. Payday loans are a convenient alternative if you are going to miss out on your rent payment for example.
Payday loans by definition
Payday loans are short term loans which are usually known for their potentially high interest rate. This interest is to be repaid at the next payday of the borrower. Payday loans are designed for those who may not get loans from traditional lenders when they apply.
Payday loans serve as a means of quick access to cash when you need it. Payday lenders are gradually moving to offer their loans online since brick and mortar is becoming outmoded.
In spite of the financial help it brings to those who need it, sometimes payday loans are noted for being highly predatory in the sense that it can put you into a cycle of debt when you borrow it.
The payday loans landscape in Alberta
Currently, payday lenders in Alberta can charge $23 for every $100 borrowed and some find this expensive. There have been legislations from the Criminal Code of Canada to bring down the cost of payday loans in Alberta. It is estimated that Albertans borrow around $500 million from payday lenders each year.
There is the discussion about the passing of Bill 15 which when passed will reduce payday loans Alberta to $15 for every $100 borrowed. This will make Alberta the least expensive place to borrow payday loans.
It will also require lenders to develop 2 pay cycles for borrowers to pay back their loans instead of the two weeks. The payments will then be in installments instead of the lump sum.
Additionally, Bill 15 requires that those who want payday loans in Alberta provide borrowers with financial literacy information or refer them to those who can provide this information to them. They should not be deprived of it when they need it for their financial issues.
Lenders will also not be able to directly solicit for potential borrowers. The bill will also ensure that those who have outstanding payday loans are not solicited for another payday loan. They will be able to see the full cost of the loan when bill 15 is passed.
Lastly, it will collect lenders information as it will be needed by the government to know those who are using payday loans, where they are from and where they live.
How much will payday loans in Alberta cost?
Payday loans in Alberta can range from $100 – $1500. This may look small but it may sometimes cost you because of the interest rates and other fees involved.
The good news is: Alberta has lowered its interest rates for borrowing payday loans than anywhere in the province. It has been down by 21% from 2016. This makes it cheaper to borrow payday loans in Alberta but it will be advisable to still ask the lender how much your loan will cost you.
The interest rates determine the cost of the loan. If they charge lower interest rates for the deposits that people bring in, lenders will not have enough to give to people. They, therefore, charge higher interest rates than what they pay out to depositors in order to get more to lend out to those who need loans.
Payday loans in Alberta can be gotten online
Online payday loans are now everywhere (a quick google search will prove this). Many people can now have access to their loans the same day with little or no requirements. It has made getting access to payday loans in Alberta much easier.
All you have to do is to fill in your information and then wait for the approval of your loan. A borrower will need to provide their proof of income for about 3 months, proof of address and checking account details for the transfer of funds and loan payments.
Those are the few requirements that will be demanded of you. When you provide them successfully, you can have your funds in your account within minimal time.
Payday Loans in Alberta have laws
There are laws set to control the way payday lenders do business. Below are some examples:
– You cannot be forced to roll over a loan even if you haven’t paid the first payday loan in full.
– Lenders in Alberta cannot charge more than 23% interest on the loan borrowed.
– All payday lenders must have a business license that will be validated from the provincial government.
– Lenders cannot contact you more than 3 times in a week
– Payday lenders cannot propose or sell to you any other kind of loan other than payday loans.
– Payday lenders are not allowed to contact friends, colleagues or any of your family members for any reason.
– You have a right to cancel your payday loan contract after 2 business days of being approved.
These laws seek to protect consumers from being exploited by lenders.
Borrowers have found some alternatives to payday loans
Borrowers who do not get access to payday loans can have alternatives. They include:
• Going for personal installment loans.
Personal installment loans prove to be more affordable to payday loans. There are a variety of lenders such as banks and other private lenders that can offer you such loans. Since the payment is stretched over a longer period, it will not require you to take a second loan to pay off your debt.
• Credit cards
When you have to pay for something with cash but do not have the money on you, credit cards come in handy. They ensure that you make the purchases that you have to make now and then pay later. However, it is also advised not to overspend your limit and rack up unwanted debt for yourself.
• Borrowing from friends or family
This method of looking for funds as compared to going in for a payday loan is always not easy because of the potential strain it can bring between you and those you are close to.
Despite this, family and friends can be the best source of borrowing after you have set out clearly the terms and conditions of the loan taken. You skip all the strenuous checks and other long formalities that the traditional lenders may require. It is safer to treat this loan just like borrowing from elsewhere to safeguard your relationships.
Payday loans in Alberta are easily advertised wherever you go but Payday lenders are however also adapting to the online way of borrowing. You should watch out for the terms and conditions of the payday loans if you are comfortable with it before signing up for them. Fast cash and easy approval may sometimes not be a bed of roses for you.
Disclaimer: All loans offered through this website are subject to credit and underwriting approval. AfterLoans.ca is a lead referral company, not a lender. AfterLoans only works with financial service providers that adhere to Canadian laws and regulations. Our lenders lend from $500-$5,000. Loans amortization is between 6-36 months. APRs range from 19.99% to 55%. The actual APR charged will depend on the lender’s assessment of your credit profile. For example, on a $1000 loan borrowed for 12 months at 29.9%, the monthly payment will be $97.24; with a total repayment, including interest, of $1166.88 There is also lender’s optional loan protection policy. In the event of a missed payment an insufficient funds fee of around 45$ may be charged (dependent on the lender). If you default on your loan payment plan the lender may terminate the plan and the remaining balance will become payable immediately. Our lenders employ fair debt collection practices, but will pursue the payment of Outstanding debts to the full extent that Canadian law allows.