09 July, 2014: The government of Ontario has been getting tough on payday loans companies such as Cash Store Financial Services Inc.. The government has refused to new their financial lending license which means that they can no longer provide loans.”Cash Store Financial Services Inc. filed for bankruptcy protection on April 15, 2014. Court documents show they are losing $2 million per week, and have well over $100 million in debt.” (http://www.huffingtonpost.ca/douglas-hoyes/payday-loans_b_5191992.html) 

The Cash Store lends money to people that do not want to cash their cheque at a bank or do not have access to a bank. The government’s main argument is that the interest rate and fees charged by payday loan companies exceeds the legal limit for financial lenders. Cash store charges $21.00 for every $100.00, on a two week loan the annual interest rate is over 500 percent. ”Cash Store Financial has 510 branches across Canada under the banners “Cash Store Financial” and “Instaloans.” It also operates 27 branches in the United Kingdom.” (http://www.ctvnews.ca/business/court-grants-cash-store-application-for-creditor-protection-1.1776361) 

A much cheaper alternative to a payday loan is a second mortgage which will have a much lower interest rate than a payday loan. The second mortgage can be used to pay off many different types of debt including credit cards, personal loans and government taxes. To qualify for a second mortgage you must own a property with enough equity to secure the second mortgage. Other factors that can determine the mortgage interest rate are your personal credit rating and the type of job you have. 

To determine if a second mortgage is the best solution to your financial situation we suggest you contact an agent at Mortgagebrokerstore.com. The mortgage agents provide free consultations and can tell you within minutes if you qualify for a second mortgage. The agent can give you an estimated range for the interest rate and any fees if they apply to you.