Figure 1: Respondent generation
|Respondent age group||%|
As shown in Figure 1, 72 % of participants had been between 25 and 54 years old. Eighty-three per cent lived in a area that is urban and 55 per cent rented their house (while 32 per cent owned a property with home financing and nine per cent owned one without home financing. )
More participants had incomes that are low-to-moderate.
Figure 2: Domestic earnings
|lower than $32K||28|
As shown in Figure 2, over 50 per cent lived in households with yearly incomes under $55,000, and over 70 per cent lived in households with incomes under $80,000. But, 20 per cent reported home incomes surpassing $80,000, with seven per cent over $120,000, demonstrating that cash advance use is certainly not limited to low-income Canadians. Footnote 11
This demographic information will assist FCAC to tailor academic resources.
4.2. Understanding expenses
Pay day loans are a high priced method to borrow funds. As shown in Figure 3 Footnote 12, they have been far more high priced than many other credit that is short-term.
Figure 3: cash advance price vs. Alternative methods of borrowing (predicated on a $300 loan taken for two weeks)
|Borrowing from personal credit line||Overdraft security on a banking account||advance loan on credit cards||pay day loan|
Not surprisingly, less than 50 % of participants comprehended that a payday loan is more costly than a superb stability or cash loan on a charge card (see Figure 4). Keep reading