Wendy Young Hamilton Ontario Personal Bankruptcy Blog: Cash Store Loans

Posted on Sunday, September 17, 2006

I've now had a couple of clients refer to their use of cash advance stores as an "addiction". In each case, the clients borrowed $200 in order to pay their rent on time. The following week, interest had accumulated making it impossible for them to cover the entire debt to the cash store with their pay cheque, so they ended up going to another cash store in order to pay the first cash store. They borrowed enough money from the second cash store to pay the first, but by the time the monies were received, more interest had accumulated on the first. By the time they called me, they were now borrowing from the 3rd and 4th cash stores to pay for the previous debts incurred, and their combined monthly payments to all of them exceeded $600. The term "Addiction" probably is a good way to describe this state of affairs, and as long as the cash advance stores are willing to lend us the money, the cycle or addiction continues. In some ways I suppose, the cash stores can be viewed as being the enablers. In one of the cases, the client had fallen so far behind with the 1st cash store, that his wages were being garnished. His rent had fallen so far behind that he was being evicted, and what started as a loan intended to help him out, ended up as a source of great worry and stress for him. Cash stores may be able to help us with the occasional payment, but it is important that you pay the debt back in full as quickly as possible, but more importantly that you know when to stop. If you don't, you could very well end up addicted like the 2 clients I've talked about here. The good news is that we were able to help these clients find a solution that was affordable, and fit in with their financial goals and objectives.

If you or anyone else you know is struggling with cash store debt or any other kind of financial burden, help is just a phone call away. Call us at 310-PLAN to discuss your options or e-mail us if you have any questions.

Cash Store Loans - An "Addiction"

Posted on Sunday, September 17, 2006

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