As the COVID-19 pandemic continues to cause widespread panic and uncertainty, an increasing number of low-income Canadians are turning to installment loans as a way to make ends meet. This is in stark contrast to the payday loan industry, which has seen a significant decline in business amid rising concerns about debt and financial instability. installment loans provide borrowers with more time to repay their debt, and typically have lower interest rates than payday loans.
The number of low-income Canadians who took out installment loans increased during the pandemic
For many low-income Canadians, installment loans are a more attractive option than payday loans because they offer more flexible repayment terms. installment loans also tend to have lower interest rates than payday loans, making them a more affordable option for cash-strapped consumers.
The COVID-19 pandemic has exacerbated financial insecurity for many low-income Canadians, who are struggling to make ends meet. In response to this growing need, installment loan providers have seen a surge in business. This trend is likely to continue as the pandemic continues to cause economic hardship for Canadian families.
Many of the workers who are most vulnerable to the economic impacts of the pandemic are low-income earners. If you’re one of these workers, it’s important to know that there are options available to help your financial needs.
Reasons for taking out installment loans
There are many reasons why low-income Canadians may choose to take out installment loans. Some may use the loans to cover unexpected expenses, such as medical bills or car repairs. Others may use them to consolidate high-interest debt or to cover the cost of living during periods of unemployment.
Regardless of the reason, installment loans can provide a much-needed financial lifeline for low-income Canadians who are struggling financially.
According to Merjen Novosel of PaydayNow Instant loan noted, As the COVID-19 pandemic continues to cause financial hardship for families across the country, installment loans are likely to become an increasingly popular option for cash-strapped Canadians.
How to get help if you’re struggling to make payments on your loan
If you’re struggling to make payments on your installment loan, there are a few things you can do to get help. First, contact your lender and explain your financial situation. Many lenders are willing to work with borrowers who are experiencing hardship.
You may also want to consider consolidating your debt or taking out a personal loan to pay off your installment loan. This can help you get a lower interest rate and make payments more manageable.
You can also find free financial counseling services through the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.
Alternatives to taking out an installment loan
If you’re struggling financially, there are a number of alternative options to taking out an installment loan. You may be able to get help from a government program or nonprofit organization. You can also talk to a credit counselor about your options.
You can also contact your provincial or territorial government to learn about programs and services in your area.
No matter what you decide, it’s important to get help if you’re struggling to make ends meet. installment loans can be a helpful tool for low-income Canadians, but they’re not the only option. There are many resources available to help you manage your finances and get back on track.
For more information on installment loans, check out PaydayNow.net — Bad Credit blog post.
