How Can Canadians Better Manage Their Debt
The level of consumer debt in Canada has been on the rise for the last 30 years. Households now owe more than $2 trillion collectively. While some people like to talk about “good debt” versus “bad debt”, the most important measures are total debt or the debt-to-income ratio. When you take on too much debt, it can be hard to get out from under the burden.
Types Of Consumer Debt
People with bad credit are usually able to take out our installment loans.
The benefits are twofold. Firstly, if you’ve run into bad luck with prior loans, you’ll have somewhere to turn when you need money. According to credit.com, installment loans won’t negatively impact your credit. Individual installment loans don’t account for enough money to play a huge roll in your credit score. In fact, the same blog explains that paying off an installment loan for a lengthier term has a positive influence over credit scoring models.
Consumer debt comes in many forms. The most common types include mortgages and credit card debt. However, unsecured lines of credit, overdue bills, payday loans, student loans, child support, alimony, secured loans and Canada Revenue Agency debts (such as income taxes) are also considered debt. Clearly it can add up quickly.
What Are The Risks of High Debt Levels?
Owing money can be an incredibly stressful situation. When you can only make minimum payments or find yourself missing payments altogether, it will take years to get rid of the debt and can end up costing you even more money altogether. If you are delinquent, then credits will likely hit you with late fees and may even raise your interest rates. When you’re focused on paying down your debt, you’ll have less income available for other expenditures.
As your debt burden and delinquency rates increase, you’ll also see your credit score fall. Your credit score is an indicator of how likely you are to repay debt. In addition to future lenders, your employer, landlord or insurance company may want to know your credit score. Once your credit score has been affected by high debt levels, delinquencies or defaults, it will take a long time to build it up again.
Does Canada Have Debt Forgiveness?
The short answer to the above question is no, Canada does not have debt forgiveness. However, you could work with a Licensed Insolvency Trustee or non-profit credit counseling service to learn how to lower or erase your debt. These debt relief services are available in every province in Canada.
Can All Debt Be Reduced?
Each type of debt has specific characteristics that indicate whether it can be included in debt reduction programs or not. Here are a few examples of types of debt that have special provisions:
Child Support And Alimony
No matter your financial situation, these debts have to be paid.
Many lenders will require you to sell off an asset in order to pay off a loan. If you don’t do that then the asset can be repossessed. If you fail to pay your mortgage, you may face foreclosure.
In general, student loans won’t be erased with bankruptcy during the seven years following your education. During this period, they usually can’t be included in proposals to manage debt. You could possibly lower this period to five years if you can show that you’re working in your field of education and you’ve done everything possible to repay your loans.
Solutions To Your Debt Problems
There are multiple ways to get out of debt. Here are the seven main solutions.
Make a budget
All households should have a budget that clearly lays out income sources and expenses. Loan repayments should be included in the expenses. After taking stock of your financial situation, you can then identify areas where you can cut costs and divert this money to paying off your loans.
If you can get a credit card or personal loan with a lower interest rate, then you could move all of your debt over to that card or loan. While you still would have the same amount of debt, your interest payments may become more manageable.
It’s also worth calling the companies you owe money to and see if they can lower your interest rate. If you’ve been making your minimum payment consistently, then they may be willing to work with you. If you’ve already missed payments or maxed out your cards, then you’re probably out of luck. You’ll have to be persistent with this method as most creditors are trained to say no. Speaking with a supervisor may help you get the lower rate you need.
To file a consumer proposal, you’ll need to hire an insolvency trustee who will work with creditors to reduce how much you have to pay back.
Debt Management Plan
With this method, you’ll hire a credit counselor to contact your creditors to negotiate lower interest rates or lower total debt levels.
You need a credit counselor for this scenario as well. The counselor will negotiate a lump sum payment that is less than the total amount you owe, and the rest of your debt will be forgiven.
If all else fails, there’s bankruptcy. In bankruptcy, all of your unsecured debt will be erased. While this may sound like a tempting and easy way out, there are some significant drawbacks to this approach. Your credit score will be impacted negatively, and it can take years to strengthen it. Also, you’ll probably have to hand over some of your assets.
If you decide to pursue a plan to manage your debt, be sure to ask a lot of questions so you know what you’re getting yourself into. First, you’ll have to figure out how to qualify for different debt relief programs. Then ask how much each plan will cost and what the different fees cover. You should also ask which types of debt will be included in the plan. Lastly, you may be entitled to some income tax relief, so be sure to ask how taxes will be affected.
How To Get Started Managing Your Debt
If possible, try to pay down your debt yourself. However, if you are still crippled by your payments even after setting a budget and cutting out unnecessary spending, then reach out for assistance. Start with your creditors and then work with a credit counselor. It’s not easy and it will take time but reducing your debt load is worth it.
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Easy Installment Loans
What Do I Need to Qualify?
In order to get an installment loan from 514Loans, all you need is to:
- Be a Canadian over 18
- Work full time
- Not be in bankruptcy
That's it! To learn more about it or to speak to one of our customer service representatives, contact us any time and we'll be happy to take you through the steps.
If you live in Canada and need a short-term loan, don't get sucked into a payday loan provider's debt trap.
Instead, get help from 514Loans! A low credit score is not a problem, and our online application form is quick and easy. We can process and pay you on the day you apply so you can get the cash you need right away. No delays, no hassles and no long waits.
Discover why Canadians are choosing us over other personal loan or payday loan providers more and more. For access to money right away, trust 514Loans. We have the no credit check loans that Canada residents deserve.
Convenient, Modern Alternative to Traditional Payday Loans
Applying has never been easier with no documents required!
Your journey begins with our two-step online application:
- Select your loan amount and complete our online application
- Complete your IBV (Internet Banking Verification)
Our fully-automated loan management software allows us to process your request faster than most online payday loan providers in Canada. Loans are then able to be granted faster, meaning you get your money when you need it.
Approval in Minutes
We are all about user experience, and that means not having to wait days to find out the results of your application.
Our state-of-the-art loan management software is equipped with an automated decision-making module, enabling us to approve your application in no time!
Your installment loan is automatically funded as soon as you sign our online paperless loan agreements.
Once you're approved, all you have to do is kick back and relax. We will automatically deposit the funds into your bank account.
Please note that although most online loans can be funded on the same day, it can take up to 24 hours in some cases.
How it works
Who we are
We are an online financial service provider. We work with licensed private lenders, to provide short term financial solutions, that are significantly less expensive and more flexible than a conventional payday loan. Good credit, bad credit, it doesn't matter. We will assist you in finding the financial product that suits your needs.
Fees and Interest
Depending on the risk associated with the application, Our lenders charge an APR ( Annual percentage rate) of 22% to 32%. Membership fees do apply. Please refer to our "Example Cost of Borrowing" section for more information.
Terms of Repayment
Our installment loans can be paid weekly, bi-weekly, bi-monthly, or monthly. The payment schedule depends on the customer's pay frequency. Unlike payday loan providers, our lenders offer loan terms of 90 and 120 days. Extended payment schedules are available for loans over $1000.
What Makes us better than Payday Lenders
Typically, Payday Loan providers require borrowers to finalize entirely on their next paycheck. The costs associated with payday loans vary from province to province.
The ABR (Annualized Borrowing Rate) for
- payday loans ranges between 390% to as high as 560%.
- installment loans range between 190% and 200%.
Our ABR includes all fees and interest associated with our installment loan product. Our cheaper ABR and more flexible terms make our product a better choice for Canadians in need of a short term financial solution.
Example Cost Borrowing
$300 borrowed over 3 months on a bi-weekly payment schedule, will cost the borrower 6 payments of approximately $75. The total amount reimbursed is roughly $450.00. This includes all membership fees as well as Interest and capital.
Our lenders charge a $50 fee for any returned payment due to NSF (Non-Sufficient Funds). The missed payment, as well as the lenders' fee, are added to the end of your payment plan schedule. Two additional payments are extended to the payment plan.
Our Lenders charge a fee of $35.00 to reschedule a payment and extend the payment plan.
The rules for rescheduling payments are the following:
- A client can not reschedule the first payment.
- A client can not reschedule two payments in a row
- A client can not reschedule more than two payments per loan term.
Borrow Money Responsibly
This type of financing is meant to be used as a bridge to solve an immediate financial crisis. Interest rates are relative to risk and may be higher than conventional banking institutions.
Please note that having Multiple Installment Loans or Payday Loans can result in long term financial burdens. Please give us a call if you are caught in a loan cycle due to predatory loan practices. Our agents will assist you in finding a consolidation product that will prevent costly collections procedures as well as a negative impact on your credit file.
Please borrow responsibly.
Applying Online is Safe with us
Your important personal information is encrypted and protected using Bank Level Encryption Security. We are HTTPS secure, and our users can expect a safe and private online experience when using our website.
How to Qualify for a Personal Loan
Our application process is simple and easy on PC, tablet, or mobile phone. The following is criteria is necessary to qualify for a loan:
- You must be a Canadian citizen
- You must be over 18 years of age
- You must be employed full time.
- You must have an active bank account.
- Must not be engaged in a consumer proposal or a bankruptcy process.
Installment Loans versus Payday Loans
Downside of Payday Loans
- Online Installment loans in Canada are 50% to 60% cheaper than payday loans and are available with longer repayment terms, making them significantly safer for your credit score.
- As the borrower, you benefit from a straightforward reimbursement process and avoid the risks associated with costly and dangerous loan cycles.
- When you take out no credit check installment loans in Canada, you also benefit from an automated stress-free payment plan that enables you to budget more efficiently for your future financial obligations.
- Moreover, you can further benefit from reduced rates and increased credit limits with every loan you successfully reimburse.
Find out why Canadians are switching to this better alternative. Our agents are waiting to serve you.
What are you waiting for? Apply Now!
They are a very knowledgeable company and very friendly to work with when getting a loan. They try and accommodate you the best they can are very helpful. Would use them again if ineed of a loan.
Amazing group of representatives that are there for you especially in an emergency situation or any time of need.
They definitely take their time and patience and go through all the details trying to offer you the best service no matter what :)!!!
Thank you so much for your help I really sincerely do appreciate it.
Excellent service, very fast. John helped me a lot when I needed it the most!!! would recommend
I want people to know that 514 Loans is excellent to work with. They are very professional especially Jed who answered all my questions and worked with me to provide the funds needed.
Excellent – no reservations, I would recommend this company to anyone.
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Short-Term Loan Requirements
Offering users a great customer experience is our number one priority. In order to achieve this, we start by making the application process as simple as we can.
Once you've filled out the application, there is nothing else we need you to provide. No extra documents. If there is anything required from your part, rest assure that our helping agents will contact you ASAP. They are here to help you.
Your application can be submitted online in five short minutes by hitting the "Apply Now" button.
When it comes to no credit check installment loans, Canada has the best service available: 514Loans, offering great payment plans and reasonable interest rates. We look forward to assisting you in finding the best financial solution for your needs.
What Can Installment Loans Be Used For?
At 514Loans, our goal is to provide the short term loans Canada needs, and to do it quickly. By streamlining the application process, we can help you start spending right away. We believe that you know your own situation best, and so we leave it up to you to decide how best to use your own money.
The following are just some of the examples of how you can use your installment loan:
- Eliminate credit card debt
- Get a new or used car
- Boost your small business
- Pay medical expenses
- Use it for school expenses
- Take a vacation
- Renovate your kitchen
- and more!
With some of the best Canada loans online, you'll get a great deal at 514Loans, along with low interest rates and flexible terms.
Frequently Asked Questions
What is a cash advance?
A cash advance is a short term financial solution, often used to cover car repairs, collection notices or any other type of unexpected expenses. Short-term cash advance services fulfill a need not met by traditional financial institutions, offering a less costly and often more desirable option for short-term loans.
A non-traditional cash advance is often the best way to receive a quick loan. Industry group CFSA reports that non-sufficient funds (NSF) cost consumers tens of billions of dollars each year from banks and credit unions. CFSA notes that millions of people each year “choose payday advance as a dignified, discreet, and often less costly solution for cash flow problems, without asking family for money or risking personal items as collateral.”
Many applicants also struggle to attain traditional financing despite having excellent credit. Many of them need quick access to working capital. Online lenders have emerged as a welcome alternative for borrowers everywhere. Online lenders are increasingly being used by consumers and businesses to get fast access to capital outside of banks. Also known as marketplace lenders, they “have leveraged low operating costs, minimal regulations, Big Data, and technology streamlined for a mobile generation to mediate terms between everyday borrowers who want quick access to cash.
What are the requirements to get a cash advance?
We like to keep things simple.
- You must be over 18 years of age
- You must be a Canadian citizen
- You must be employed full-time
- You must have an active bank account
- You must not be engaged in a consumer proposal
- You must complete an IBV (Instant Bank Verification)
I am Self Employed. Can I apply for a cash advance?
Absolutely! Just as long as our agents can verify a frequent source of income through your IBV (Internet Banking Verification).
How much money am I allowed to borrow?
Our loans range from $300 to $3000.
However, ou lender's credit risk may assign a different amount than originally requested. This assures that the borrower will be able to reimburse the loan without any negative impact on their budget and/or financial situation.
When can I expect the funds to arrive?
Your funds are deposited automatically as soon as we receive your signed electronic contract. Deposits typically happen on the same day; however, some deposits can take up to 24 hours to appear in your bank account.
What do I need to email or fax in?
You may fax or upload your documents during your application process.
The required documents are:
- A copy of your driver's license
- A proof of residence (any most recent utility bill with your name and address indicated on it)
Consolidate Your Debts and Get out of Dangerous Loan Cycles
Are you caught in a loan cycle?
514Loans is here to help! We work with a non-profit corporation to help Canadians get out of loan cycles. We can help you get your paycheck back!
If you are struggling with multiple loans, unable to keep up with high interest rates, or are facing a potential bankruptcy, give us a call now and let us help you consolidate your debts into one small monthly payment.
If you are unfamiliar with how the credit reporting system works or if you would like guidance in understanding and improving your credit standing, please contact a non-profit credit counsellor at Consolidated Credit by calling 1 (844)-871-1426.
Call today for a free, no-obligation consultation or complete a form: click here for a free consultation.
Credit counsellors can help to assess your situation, clarify errors on your report and outline the best options to rehabilitate your credit through repayment of debts at lowered interest rates. Doing this will enable you to qualify for new credit in the near future.
Debt Consolidation Programs
We work with a non-profit credit counseling company.
We frequently recommend to our clients to explore all of their financial options through a professional counselor at Consolidated Credit Counseling Services of Canada. This approach allows our clients to decide for themselves which option is best for them and their financial well being.
If you are struggling with too many loans, please click on the free consultation button on this page, and see if you qualify for the debt relief you deserve.
Benefits of a Debt Management Program (DMP) w/ Consolidated Credit
- Lowered monthly payments to creditors
- Lower interest rates than credit cards, Payday Loans or Installment loans
- Get a clear understanding of how to budget to avoid loan cycles in the future
- Have more money left on your paycheck to begin saving again.
Disadvantages of a Debt Management Program w/ Consolidated Credit
- Any unsecured account(s) consolidated in a DMP will be permanently closed in order to achieve the reduced interest rate(s).
- RBC and Canadian Tire Mastercard are “full-budget creditors” meaning they will review the prepared budget and credit file to ensure all unsecured creditors have been included on the DMP before they agree to be included and that no budgeted expenses are unrealistic for a hardship circumstance.
- Scotiabank will review the same to ensure that all of their unsecured products have been included prior to agreeing to our proposal.
Offering Installment Loans in Canada, Even with Bad Credit
When Canadians find themselves in need of short-term loans, bad credit shouldn't stand in the way. And the repayment process for those loans should be as simple as paying rent or mortgage, phone plans, electricity and other monthly bills.
Installment loans offer the bridge you’re looking for when you’ve landed in a spot of financial trouble. The small and steady payments allow you to easily plan your budget accordingly. Most importantly you can usually obtain prompt approval for these online loans without a credit check.
Here are some of the most frequent situations that may call for an installment loan:
It doesn’t matter who you are, you need a roof over your head. But an unexpected expense can cause anyone to be short on their rent, often a day or two before it is due.
Thankfully, an installment loan can help you in a few ways. First and foremost, you’ll have the cash to cover this month’s rent. And if you budget accordingly, the flexibility of an installment loan will also help you avoid falling behind financially in the future.
Falling behind on a car payment can be hazardous to your credit. An installment loan is a great solution that helps you make the necessary payments while allowing you to stay on course with your budget.
An installment loan can also help you phase out and replace a payday loan, which typically reduces additional financial concerns in the future.
Are you caught in a payday loan cycle? Are you using a big part of your paycheck to cover your payday loans? Consolidating that debt with an online installment loan allows you to have a single small payment, instead of seeing most of your paycheck disappear as soon as you receive it.
If you have Bad Credit
Even people with bad credit are usually able to take out our no credit check installment loans. The benefits of that can be huge; you get somewhere to turn to when you need money, and you don't have to do so at a further cost to your credit score.
According to credit.com, installment loans won’t negatively impact your credit. Individual installment loans don’t account for enough money to play a huge role in your credit score. In fact, the same blog explains that paying off an installment loan for a lengthier term has a positive influence over credit scoring models.
Avoid NSF Charges
Unpaid NSF fees are damaging to your credit. If they remain unpaid for 30 days, your account will be considered delinquent and reported to the credit bureau. Delinquent accounts do harm your credit score and can further complicate your situation. 514Loans can help you avoid unnecessary NSF charges.
When January 24th rolls around, most people are nervously anticipating their credit card bill from the holidays. Sometimes you have to financially overextend yourself during the holidays so you’re able to purchase gifts for your friends. Other times it’s a big family trip you couldn’t back out of, even though you were a little light on funds.
Regardless, an installment loan can help you recover from the financial stress of the holidays.
No Credit Check LoansBenefit From Our Policy
Our applicants are not subject to credit checks. We use your banking transactions as well as other criteria to assess your request. We give you a clean slate. We believe in second chances, and we will take a chance with you when nobody else will.
What is a short term loan good for?
It should be considered as a bridge money to pay for urgent bills and not a method to increase your credit. Our rate are higher because we take a lot of risk with lending to someone with having done a credit check when issuing a customer a loan.
Short Term Loans
We understand that there are limits to how much you can stretch your paycheck in order to accommodate unforeseen expenses. Don't worry, we've got your back when it comes to installment loans in Canada.
Our Loan Rates
Our lenders charge an APR (annual percentage rate) of 22% to 32% depending on the risk score of the application.
A 300$ loan with an APR of 32% is refundable in 6 bi-weekly payments of approximately $75. This example includes all the fees associated with the borrowed capital over the three months.
Terms of Repayment
Our online installment loans are repayable within a period of 90 to 120 days. Longer loan terms are available for loans over $1000.
Abusing microloans can cause negative impacts to your financial well-being due to their higher interest rates. The interest rate on an installment loan is higher than conventional financial institutions and should be used only for emergencies.
Types of Loans
Call them whatever you want
We specialize in
Payday Loans are:
- Old news
- Extremely expensive
- Have a short payback of 14 days
- Being replaced by installment loans
Get your instant loan application started today. Our installment loan processing is optimized to provide you with your money when need it most.
Our installment loan application process is optimized for iPhone and Android mobile devices (smartphones).
Our installment loans do not require any guarantees nor liens. We do not offer title loans.
Our process is entirely done online.
- Apply today
- Get approved within an hour
- Receive your money in your bank account.
We offer personal loans to Canadians electronically. Apply today for your personal installment loan.
Proudly serving Canadians with no credit check installment loans, the best alternative to payday loans and the go-to alternative financial services. Thanks to you, we are the fastest growing installment loans provider across the country.
Where are you from?
Winnipeg, Dauphin, Morden, Portage La Prairie, Selkirk, The Pas, Winkler, Steinbach, Thomspon
Montreal, Laval, Quebec, Gatineau, Lasalle, Terrebonne, Longueuil, Levis, Brossard, Sherbrooke, Repentigny, Saint-Hubert, Verdun
Halifax, Cape Breton, Dartmouth, Truro, Sydney
Moncton, Saint John, Fredericton
Prince Edward Island