Infographic: The Payday Loan Cycle

Author:

📅

Updated On: November 18, 2024

Get a free, no obligation personal loan quote with rates as low as 9.99%

Free quote with no impact to your credit

Payday loans have been around for decades, they represent a part of the financial world that many people have never even heard of. Within the last month payday loans and the lenders that offer them have been written about in the majority of Canadian news publications. With payday loans on everyone’s mind right now, we’re taking a look at how these lenders pay upon those in desperate financial situations and then trap them in what is called the payday loan cycle. Take a look at our newest infographic for an in-depth look at how this vicious cycle of debt is perpetrated.

Take a look at some of our previous articles for more information on payday loans.

How Much Do Payday Loans Really Cost? Click here.
Payday Loan Help: Break the Cycle and Get Help, read this.
How Payday Lenders Prey Upon the Poor, here.

Infograph icons accredited to “Freepik“

MDG

Caitlin Wood, BA

Caitlin Wood [BA Concordia] is the lead content specialist at Loans Canada and has over 10 years of experience in digital publishing and personal finance content. She oversees the creation of accurate, clear, and practical resources that help Canadians make informed decisions about loans, credit, debt, and personal finance. Specializing in simplifying complex financial topics, Caitlin ensures that all content reflects responsible lending practices and high editorial standards. Her work supports Loan Canada’s mission to provide trustworthy guidance and empower Canadians to navigate their financial options with confidence.

Special Offers

HOT!

Earn Cash Weekly With Freecash

Freecash is an app that lets you earn money by playing games, trying new apps, or completing surveys, all from the comfort of your home.

Credit building!

The Foundation by Spring Financial

Credit building on autopilot. Appy for The Foundation and make payments for 12 months. Payments are reported to both credit bureaus which can help build credit. Plus, after 12 months you’ll have $750 saved.

HOT!

Build Credit With Kikoff

A simple and safe way to build your credit. No credit check, no hidden fees, and no interest. Kikoff reports payments to Equifax, which can help improve your credit.