subject: Bad Credit Loans Loan In Canada Clarification Of Bad Credit Payday Loans Part Forty Eight [print this page] Applying for and obtaining bad credit payday loans is very quick and easy. People looking for bad credit payday loans can walk into a store or outlet that provides these loans and related loan services with their cheque book and apply and receive their bad credit payday loan within a few minutes. The basic concept of a bad credit payday loan is that you are borrowing money against your own pay cheque, wage or salary that you will be getting at the end of that the same month that you apply for the loan. The lender takes a post date cheque from the borrower dated on or just after the borrower's payday. The lender then cashes the cheque on that day after the borrower has informed the lender that there is sufficient money in their cheque account to cover the total bad credit payday loan including the loan fees and charges.
So people applying for bad credit payday loans of say three hundred dollars will write out a post dated cheque for their lenders for an amount ranging from three hundred and twenty five dollars to three hundred and forty five dollars. The extra twenty five dollars or forty five dollars is the loan fee and subsequent interest that the lender has added onto the loan in order for the borrower to receive the money immediately. The lender will then give the borrower three hundred dollars, which is the loaned amount. The lender then keeps the post dated cheque for the amount of three hundred and twenty five dollars or three hundred and forty five dollars. The borrower can then come back to the lender on the date written on the post dated cheque and physically pay the lender the three hundred and twenty five dollars or three hundred and forty five dollars or the borrower can ask the lender to simply cash the cheque.
However, the most common problem with people who are granted bad credit payday loans is that they usually cannot afford to pay back the loan in total as written on the post dated cheque and cannot pay the full amount on the date of the post dated cheque either. Payday loans are obviously different from traditional loans which can be paid back in a number of instalments over time. Payday loans are loans where the whole loaned amount has to be paid back at the end of the same month that they are applied for and granted. Borrowers who cannot meet the payment deadline stipulated on their post dated cheque then resort to what is known as flipping their bad credit payday loan. They then make the huge financial mistake of taking out another bad credit payday loanto pay off their original bad credit payday loan. This is financial suicide and is the exact way to quickly get into further unpayable debt.
To read about the various types of Canada loans available at BHM Financial or to apply directly online for a Canada loan in any one of the Canadian provinces namely, Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan, visit the loans in Canada website at bad-credit-loan-in-canada.com. You can also text chat with a BHM Financial loans consultant now, online, about your Canada loan, by accessing this link Canada loans text chat.
