What are the Fees?

If you find yourself in a situation whereby you feel that payday loan is your best option, then you need to be aware of the fess that are associated with this type of loan.

Although the application and approval process is designed to be relatively simple, the payday loan is not meant as an ongoing way to access credit. The fees associated with this type of loan can be quite expensive – certainly more expensive than a traditional type of term loan.

These fees can add up quickly, so you need to be discerning when using this type of credit. Some of the fees that can be associated with a payday loan are:

  • The interest for the time that the money is borrowed – this can be quite a bit higher than other types of loans
  • Set up fees – usually a one-time only fee
  • Administration fees –that can include a processing fee, a verification fee or what is sometimes referred to as convenience charges
  • A broker’s fee
  • Collection fee
  • Early repayment fee – if you decide to repay the loan before the payment deadline
  • Loan replayment fee or first party, cheque cashing fee
  • Locate fee
  • Return fee or non-sufficient fee if your repayment bounces
  • Rollover fee, renewal free, finance charge or additional charge or extension fee if you know you cannot make the payment on the scheduled date
  • Wage assignments or liens on personal property (where your paycheque or personal property is seized by the payday lender to pay off your loan.

So with a payday loan, as with any credit application that you chose to utilize, you really need to ensure that you are educated and that you read the fine print. Being stuck with an unexpected fee on top of the interest rate that is already going to be high, is not a good surprise to have.

Once you calculate all the additional fees, you need to evaluate if a payday loan is still your best option. If you are still not sure, then by all means contact a financial expert to help you make your final decision.

We are here to help you do exactly that. We will help you sort through all the small print so that you can make the most informed and best decision that is perfectly suited exactly for your financial needs – so contact us today, there is nothing to lose except a little stress!