Our yearly Hoyes, Michalos & Associates Inc. research on bankruptcy and payday advances for 2018 reveals that nearly four in ten insolvencies in Ontario include payday advances while the speed of good use among greatly indebted borrowers will continue to boost.

Than they make in a month as we shall see in this report, insolvent debtors are highly likely to borrow from multiple payday loans lenders and end up owing more in payday loans. What exactly is also concerning could be the increase in utilization of high-cost, fast-cash installment loans and personal lines of credit offered on the internet and through conventional cash advance lenders; a significant contributing element for their economic issues.

Pay day loan Utilize Will Continue to improve

In 2018, 37% of all of the insolvencies included pay day loans, up from 32per cent in 2017. This is why the seventh consecutive 12 months we have experienced development in the employment of pay day loans among insolvent borrowers since we started our research.

Insolvent borrowers are now actually 3.1 times almost certainly going to have one or more cash advance outstanding if they file a bankruptcy or customer proposition compared to 2011.

Note: Hover/click on pubs in graphs to see more information

Source: Hoyes, Michalos

Just how can this be, offered changes that are recent cash advance legislation in Ontario made to decrease the risks of borrowing for customers? Some of these changes were designed to reduce loan sizes and provide relief for repeat borrowers including in addition to lowering costs

Continue reading →