Doug Hoyes: And youвЂ™re right, thatвЂ™s scary cause we define seniors as people 60 years and over, so a significant proportion of those people are retired, in fact 62% of the people are retired if youвЂ™re a senior, and.

Ted Michalos: ThatвЂ™s right; theyвЂ™re pensioners on fixed income. So, theyвЂ™re never ever planning to get that 3rd paycheque that a great deal associated with middle-income group folks depend on to repay their payday advances. They understand theyвЂ™re having the same sum of money every month. Therefore, if theyвЂ™re getting loans that are payday means theyвЂ™ve got less overall offered to buy other items.

Doug Hoyes: So, the highest buck value owing is because of the seniors, however in regards to the portion of people that utilize them, it is younger individuals, the 18 to 30 audience. There are many of those who possess them; theyвЂ™re simply a diminished amount.

Ted Michalos: ThatвЂ™s right.

Doug Hoyes: So, it is whacking both ends of this range, then.

Ted Michalos: ThatвЂ™s right.

Doug Hoyes: ItвЂ™s a really persuasive issue. Well, you chatted earlier in the day about the truth that the price of these specific things could be the genuine big issue. Therefore, I would like to enter into increased detail on that. WeвЂ™re gonna have a fast break and then actually breakdown how expensive these specific things actually are. Since itвЂ™s in excess of you might think in the event that you donвЂ™t crunch the figures.

## Therefore, weвЂ™re going to have a fast break and be straight back the following on Debt Free in 30.

Doug Hoyes: WeвЂ™re right back right right here on Debt Free in 30. IвЂ™m Doug Hoyes and my visitor today is Ted Michalos and weвЂ™re dealing with alternate kinds of loan providers plus in specific weвЂ™re dealing with payday advances.

So, prior to the break Ted, you made the remark that the typical loan size for a person who ultimately ends up filing a bankruptcy or proposition with us, is around $2,750 of pay day loans.

## ThatвЂ™s balance owing that is total.

Doug Hoyes: Total balance owing for those who have pay day loans. And that would express around three . 5 loans. That does not appear to be a number that is big. Okay, therefore I owe 2 or 3 grand, whoop de doo, the guy that is average owes bank cards has around more than $20,000 of credit debt. Therefore, exactly why are we concerned about that? Well, i suppose the solution is, it is even more costly to own a cash advance.

Ted Michalos: ThatвЂ™s exactly right. What folks donвЂ™t completely appreciate is, what the law states in Ontario claims they could charge at the most $21 per $100 for a loan. Now individuals confuse that with 21%. Most bank cards are somewhere within 11per cent and 29% with regards to the deal youвЂ™re getting. Therefore, you might pay somewhere between вЂ“ well you might pay $20 worth of interest if you owe $100 on a credit card over the course of a year. With a pay day loan youвЂ™re having to pay $21 worth of great interest when it comes to week regarding the loan. Perform some mathematics.

Doug Hoyes: therefore, letвЂ™s perform dollar loan center fees some math, then. Therefore, $21 per every $100 you borrow may be the maximum. Therefore, iвЂ™m going to have to pay back $363 if I borrow $300, letвЂ™s say, for two weeks. Therefore, IвЂ™m going to own to pay off 21 times 3. Therefore, one loan costs me $63, two loans cost me personally $126, four loans cost me $252. Well, okay therefore once again that does not seem like a deal that is big. Therefore, we borrow $300 i need to repay $363.

Ted Michalos: however the average stability is $2,700. Therefore, 27 times 21, $550.

Doug Hoyes: And that is in fourteen days.

Ted Michalos: ThatвЂ™s in 2 months.

Doug Hoyes: then that could happen 26 times during the year if i have to go back and borrow and borrow and borrow, I guess if IвЂ™m getting a loan every two weeks.