A payday loan can provide access to money when a person faces an unexpected expense, but it is not the only possible source of short-term funds. Ontario’s consumer guidance specifically recommends considering alternatives such as borrowing from family or friends, using a bank or credit union, or using available credit before taking out a payday loan.
One option may be an existing line of credit. Depending on the terms, a line of credit can allow a borrower to access funds as needed and repay the balance over time. The cost of borrowing depends on the interest rate and other terms, so consumers should compare the total cost rather than assuming one option will always be cheaper.
A credit card may also be an alternative for some consumers. However, cash advances can involve fees and interest, so the specific credit-card agreement should be reviewed carefully. The relevant comparison is the actual amount that will have to be repaid.…



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