PayDay loans should never ever be used. They are beyond unbelievably expensive and the worse way to borrow.
In the US, and I am sure the statistics are close for Canada, about half of all payday loans are made to people who extend the loans so many times they end up paying more in fees than the original amount they borrowed, a report by a federal watchdog has found.
The report released Tuesday by the Consumer Financial Protection Bureau also shows that four of five payday loans are extended, or “rolled over,” within 14 days. Additional fees are charged when loans are rolled over.