. They are an important part of our day to day lives which is why its extremely important that consumers understand the true effect that the interest has on them. It may seem cheap and easy when you purchase with a credit card and only have to pay a small minimum at the end of each month BUT the truth is that your finances suffer!
What is Interest?
Interest is a fee that a consumer will pay for being able to borrow money. Credit card companies will keep the monthly minimums low (around 2% - 3%) so you wont notice the high average rate (between 18% - 28%) that they charge on outstanding balances. Payday loan companies will charge up to 21% on every $100 borrowed. Paying too much interest is a common trap many Canadians fall into.
Minimum Payments
Minimum payments are important because even though the credit card companies charge a low monthly percentage, theyre actually charging a high interest rate. To the consumer this appears to be convenient and easy but in the long run its costing you almost double of the original balance.
What is an alternative to borrow money?
A payday loan company should not be an option. The fees are astronomical and they will not help you rebuild your credit.
Since 1984, Prudent has been specializing in repairing credit with same day loans which are open and affordable to discharged and undischarged bankrupts, people whose proposal is almost paid off as well as people who have paid off their past debt but still have bad credit scores.
Prudent Financial Services is the leader in loans to people with bad credit histories across the GTA and regions. Dont be fooled by the pay loan competition telling you how cheap and fast they are.