The shocking amount of interest you’d owe on a $300 payday loan - S.R. Stack & Company Ltd. Skip to content

The shocking amount of interest you’d owe on a $300 payday loan

The Globe and Mail
Did you know that payday loans charge interest rates in the hundreds of percent? Preet Banerjee does a great job, in this Globe and Mail piece, explaining how borrowing a few hundred dollars for a couple of weeks is deceivingly expensive.

You may know that payday loans are expensive but did you know that because they are advertised based on the dollar cost of borrowing (ex. $20 for two weeks) it isn’t obvious just how much interest you would be paying compared to other “traditional” forms of borrowing such as a credit card or a bank loan.

Preet Banerjee, in the link below, does a great job of explaining just how expensive payday loans really are, often in the hundreds of %.


Did You Know?


Many people who file for bankruptcy get to stay in their home.


In Newfoundland and Labrador, you can keep your RRSPs – even if you file for bankruptcy.


Many people who file for bankruptcy are able to keep their vehicle.


Most bankruptcies are NOT published in the newspaper.


Student loans can be included in a bankruptcy if they are more than seven (7) years old.


A consumer proposal is an alternative to bankruptcy that can only be filed with a licensed trustee in bankruptcy.


In NL, people ages 30 to 39 years old file for bankruptcy more than any other age group. [source]