Description: They are regulated in most Canadian provinces. But payday loans still have astronomically high rates ranging from 456 percent to 639 percent. Don’t be fooled by the simple phrase of $15 for a $100 loan. When you figure out the math on an annual basis, you can see why Professor Jerry Buckland is calling for government intervention to help consumers.

Date: September 14, 2016

Source: theglobeandmail.com

Link: http://www.theglobeandmail.com/report-on-business/rob-commentary/when-payday-lending-leads-to-poverty-its-time-for-intervention/article31857391/

Discussion Points:

1) As a student have you ever taken on a payday loan? If so, have you calculated the interest rate?

2) On page 79 of  Wiley’s Financial Accounting: Tools for Business Decision-Making we read about “Your Personal Statement of Financial Position.”If you had a payday loan, where would it show on your personal statement?

3) What might be some alternatives to payday loans if you are facing a temporary cash flow crisis in your personal financial situation?