The Truth about Payday Loans – Finding a Local Solution
Dave and Reb welcome back guest Doug Pawson, Director of Social Business and Social Finance at Ottawa’s Causeway Work Centre to discuss the issues and trouble around payday loans. Doug shares with them how the Centre is working to help people who are bound to the crazy cycle of these loans.
There are over 800 payday loan companies operating in Ontario, and many people are bound to the high-interest cycle created by these companies. These companies are often located in the poorest places in the city.
According to Doug, many people who use these companies are on fixed incomes and end up spending their grocery money on loan interest. Since they don’t qualify at banks to receive even the smallest overdraft protection, people on fixed incomes or low incomes are left with very few choices.
“They can very easily be trapped into this high-interest cycle offered by payday loan companies,” Dave says.
However, according to Doug, the financial fund at the Causeway Work Centre is helping break the payday loan cycle by offering them help in partnership with some of Ottawa’s Credit Unions.
Listen to the show to find out more. Or find more information about the Causeway Work Centre and their Community Finance Fund at http://www.causewayworkcentre.org/.
Today’s show is sponsored by Brent Vandermeer and the team at Vandermeer Wealth Management and HollisWealth. For more information about how they can help you with financial planning go to www.vandermeerwealth.com, or call 613-722-0408.