Hard to get a payday loan in Ontario after the Cash Store closes

cashstoreCustomers in Ontario needing a payday loan may be left with fewer choices following recent enforcement of procedures in Canada regulating how that industry operates. The case of the Cash Store, a popular payday loan lender based in Edmonton, has shown many how a popular business model can be brought to its knees based on the determinations of the bureaucracy. The company has recently appealed determinations made by the Ministry of Consumer Affairs that Ontario’s registrar revoke the licenses of the company’s main lending products, effectively driving it out of business. Clearly, they are not the only lender operating in Ontario but this will still have a negative effect on competition. That said, considering every lender in the province charges the same rate, it could be argued that competition has had no positive effect thus far.

Payday loans have been popular because they offer a convenient cash advance, often under emergency circumstances, to borrowers unable to qualify for financing on a conventional basis. The usually small or “micro” level of the loans is also not traditionally provided by lenders, making it ideal for workers unable to borrow large amounts, who are willing to accept its higher interest rate and fees. The Ministry of Consumer Affairs, pursuant to recent legislation, demanded that such operations provide loans of this nature directly by cash, instead of through electronic transmission to the borrower.

The Cash Store refuses to comply with this regulation, citing safety concerns for both employers and borrowers. Others point out the regulatory change forces such companies to have more cash on hand, a situation causing the Cash Store to transition from having a net income of nearly $1 million in 2011, to reporting a net loss of $1.7 million by the end of 2012. Many consumers fear the loss of this company is making it more difficult to obtain alternative financing of this type within the province and elsewhere in Canada. The Cash Store has also claimed that regulators have attempted to stop them from selling products other than payday loans.

Some opponents to the legislation leading these regulations suggest the changes came about at the behest of the banking industry, to protect its bottom line from payday lenders, who are doing a better job accessing this borrower market than traditional lenders are. Consumers for now will have to be extra diligent in seeking out rival payday lenders willing to operate under the changes, or consult with banks about specialty products they may offer that are similar to a payday loan.

Too Many Assets Is A Liability

In layman’s terms, there are simple ways to determine one’s wealth. A large home, a luxury car, unique furniture and the like can all indicate that the owner is above average in terms of income. To an ordinary person’s mind, a homeowner who has more furnitures, fixtures and appliances in his home must be rich. Therefore, a lot of people equate more assets with more wealth.

This mindset is not a good way to go about increasing one’s wealth as there are hidden costs to this mentality. The more furniture one has, the less space is available in the home. It also costs more to maintain it and more effort to relocate it. A wise man knows that wealth doesn’t need to be flaunted uselessly.

An ideal home is one that is decorated in such a way that it still feels welcoming without having too many stuff littering its interior. In fact, most families will have bought too many items at one time or another. The best solution for this is to conduct yearly spring cleanings and yard sales. Items that don’t get sold should be thrown out as they only cost more to store.

It’s also better to think about how an item will be used before its purchased. The buyer should visualize if the item can fit in his home. If there’s no practical use for it in the household, then it’s better to save that money.

What to do When Going Bankrupt


bankruptWith last decade’s economic downturn affecting all industries and businesses, it’s not unusual to find people who are not only out of a job, they’re also legally bankrupt. For those people who are currently in the same situation or who are about to face bankruptcy, there are a few ways to get back up again, financially speaking.

First of all, bankruptcy isn’t something to be ashamed about. More and more people have filed for bankruptcy over the last decade than everyone else in the previous three decades combined. This is especially true for those homeowners who got entangled in sub prime loans. With so many people now bankrupt, it’s become more common place to find bankruptcy advisors.

These services can teach about the basics of what it means to be bankrupt. They go through what it means in terms of how you interact with banks and how you’ll have to face your liabilities at a future time. More importantly, they can teach you the fundamentals of a sound financial portfolio using real- life examples.

Filing for bankruptcy isn’t the only solution for those who are currently insolvent. Many banks will has some form of Debt Relief Orders or Individual Voluntary Arrangement that can help you retain your assets, especially your home, car and other fixed properties. Your credit rating will go down, but the trade of is more control over your property.


Are you having the right service plans for your needs?


Everyone in the country subscribe to at least a few services. They can differ from internet connection to cell phone service. Each one of these services is available at various price levels, speeds, amount and quantity that you can use in a specified period of time etc. It would be up to you to use your mind and make the right judgment call to choose the appropriate service category. Typically, whenever you are making a decision on choosing a service plan, you will be guided by sales men who are pushing you towards one category or other. They are going to offer you the services that are likely to provide them with the highest commission. It will not be in your interests to follow their opinion blindly and make up your mind. Of course, some salesmen are likely to offer you value choices. You can use their suggestions as helpful guidance to make up your mind. If you occasionally review the difference between the service plans that you have chosen and the actual usage, you can make the necessary changes to come to the optimal packages. But, most people are unlikely to think over this matter after they make up their mind and choose a service plan.


Things To Be Done Before Letting Your House Out


There is a greater demand for houses on rent than ever before and if you have a house to rent, you can earn a decent income every month. However, before renting your house out, you should realize that some unforeseen expenses might crop up and you should be prepared to meet them.


House Repairs



Anything can go wrong with your house and you should be prepared to repair any damage to your house on time. You need to set aside a separate fund for this purpose. Keeping something like $ 5, 000 in hard currency will help you to carry out minor repairs on time. You may sometimes have to initiate legal proceedings against tenantswho don’t pay their rent. Legal proceedings are costly and time consuming. Remember to keep a reasonable amount of money for that likelihood too.






If your tenants get injured in accidents while being on your property, you will be held liable to pay compensation. Therefore, take addition insurance so that compensation for injuries to tenants, if any, will be paid by the insurance company.



Choose Your Tenants



All tenants are not the same. Some are cooperative while others create problems. Your house may be vandalized and no rent may be paid. To be on the safe side, check the background of people who want to rent your house. Rent your house only to people who have a clean record and are trustworthy.



Appoint a Manager



There are agencies who manage everything related to property rentals for a fee of 10 % of rental income. This is a negligible amount compared to trouble they take to manage the rented property. The house owner need not worry about anything. Appointing a manager will be very convenient if your rental house is far away from where you live.



The rent you get may not be a very big sum but something is better than nothing. If luck is on your side, the income you get in the form of rent will be higher than what you expected.