Example: Ken L., a 49 year old store manager in Oshawa, Ontario had just received notice that his daughter’s cell phone account is in jeopardy of being handed over to a collection agency because of her reluctance to tell dad how much her text messaging charges were for the past three months. Not in a position to take the money out of the bank, Ken was left with the frustrating act of having to borrow money from a friend. Unfortunately, that friend was just as broke, so Ken went online to see if there were any cash borrowing options. Typing in the search words “payday loan” and “Oshawa” into his favorite search engine, Ken immediately noticed a bunch of payday loan sites that were offering him instant cash with a simple click of the mouse and a few minutes of filling out an online application. Ken was excited, but when he started to look a little further into the sites that were offering the tantalizing lure of quick cash, Ken realized that none of these sites were actually located in Oshawa. In fact, for the majority of them he couldn’t find where they were located. This was a big deal breaker for Ken since he wanted a payday loan service that he could walk into if there were ever any problems. He simply did not trust any money lending company he could see with his own eyes. Searching around some more, he eventually found a pawnshop that also offered payday loans and it was practically right down the street from his work. Ken felt much more secure knowing that he could at least have a face-to-face meeting with someone before filling out an application to borrow. This may not be an issue for most, but it was for Ken.
Example: A co-worker of 56 year old Frank M., from Grande Prairie, Alberta was wondering out loud one day if getting a payday loan when in need of some quick cash was a good thing or a bad thing. The co-worker seemed to think that applying for payday loans was “like gambling” and that once you “started down that path” it was hard to get out. But having had “gone down that path” before, Frank told the co-worker that as long as you are able to pay back the payday loan on time, and of course, don’t abuse the service, then you should be ok. Truth be told, Frank has used a payday loan service in Grand Prairie a few times due to some unforeseen household expenses that needed immediate attention. Sure, he could have waited until his next pay, but then the laundry would have piled up and washing dishes without a dishwasher, in a household of five, gets really old, really fast. Just ask Frank’s wife! The co-worker was still not convinced and asked Frank about the high interest rates. Frank pointed out that yes, while they were higher than a bank’s, they were, in Canada, less than most credit card rates which made sense for Frank. Frank finished his thought by saying to his co-worker, that if one did not abuse the service and only used it when absolutely necessary, as a last resort, it could actually be a great relief when the unexpected happened. The co-worker nodded and seemed to be in agreement with Frank.
Example: Clara L., is a 23 year old resident of Bathurst, New Brunswick, who has worked as a part-time server in a local diner for a few years now. As a full-time college student she can’t afford to work full-time, but as a part-time employee, she sometimes finds it hard to make ends meet when she needs to. A couple of months she even missed a rent payment because she thought she had enough money in the bank when in fact she didn’t, causing her rent check to default. Obviously, her landlady was not impressed and Clara promised her that it would never happen again. However, this month may be a repeat performance if Clara doesn’t find a way to generate some extra cash. Fortunately, she was able to get some extra shifts but the extra cash will only be reflected in her next paycheck, leaving her short this month. Fearing that she’ll break her promise to her landlady, Clara has decided to take a friends advice and apply for a payday loan. She doesn’t 100% like the idea, but she has no other alternative and while she will have to pay an extra forty dollars or so on the $200.00 she needs to borrow, she figures it’s pretty much the same as what she was charged by the bank for her check bouncing and at least shes not breaking her promise.
Example: 45 year old Alan C., of Fredericton, New Brunswick has worked off and on as a short order cook for the past 15 or so years, and while he’s been able to maintain a decent enough living, there are times when he’s over-extended his finances and needs to borrow from friends or family to cover home expenses or the occasional cell phone bill which he of course, promptly pays back. This time though, he needs to borrow a little more than he’s comfortable asking and has begun looking for alternative ways to borrow money. Since he’s only looking for a short term loan to tide him over for a week, he’s given no consideration to his bank since they turned him down a few months due to his only needing a short term loan. This has led Alan to apply for a payday loan which offers him a short term loan schedule, but can be a bit hefty on the interest rate. Since he’s not that keen on paying a lot of interest, Alan has come up with an interesting compromise which involves borrowing some of the money from a good friend who won’t charge him any interest while making up the difference with a payday loan. This way, he pays less interest on the money borrowed through the payday loan company and still gets to pay off his debts.
Example: 36 year old Jessica has lived in Miramichi, New Brunswick all her life and while she loves the city in the summer, she really loves all that Miramichi has to offer in the winter. Currently she is employed full time as an instructor at the Miramichi Cross Country Ski Club. Recently, and thanks to the Christmas holidays, Jessica has had to spend more money than she originally budgeted for and now finds herself short for the coming weekend. Normally she would be fine, but this weekend is her best friends 40th birthday party, and she wanted to do something special in celebration of this milestone. Discussing her situation over coffee with her boyfriend, she found out that he had used a payday loan service once when he was strapped for cash. Jessica had never heard of a payday loan before but was soon reading up on the concept over the Web. She liked the instant cash part of getting a payday loan but did not like the high interest rate that went along with it. As she was about to click out of of her browser, she noticed an ad for a pawnshop in town. Clicking on the ad, she landed on their home page where she learned that she could take an item into the pawnshop, get immediate cash for it as a secured loan, and then we she paid off the loan, she would get her item back. She liked that idea, but more importantly, she liked the lower interest rates they were charging compared to the payday loan operations in her town, which of course, was their selling point. Feeling a little more easy about using a pawn shop instead of a payday loan business, Jessica began looking around her apartment for something to pawn.