Infographic: The Payday Loan Cycle

Infographic: The Payday Loan Cycle

Written by Caitlin Wood
Last Updated January 26, 2018

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.

Infographic The Payday Loan Cycle

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.
  • Payday Loans vs Installment Loans Video, watch here.

Infograph icons accredited to “Freepik


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Caitlin is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security. One of the main ways she’s built good financial habits is by budgeting and tracking her spending through the YNAB budgeting app. She also automates her savings so she never forgets to put aside a portion of her income into her TFSA. She believes investing and passive income is key to earning financial freedom. She also uses her Aeroplan TD credit card to collect Aeroplan points so that she can save money when she travels.

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