Don't Make Matters Worse

Do not:

• Do not use your credit cards or take an advance on your credit card if you are short on cash.
• Do not write a cheque when you know you do not have the funds to cover the amount. Not only will you have to pay non-sufficient funds (NSF) fees, but the creditor may sue or you may be criminally prosecuted. Also, the NSF cheque may impede your ability to open future accounts with your current bank and/or other financial institutions. NSF cheques report to your credit bureau and can be seen as irresponsible financial activity to potential lenders.
• Do not get a payday loan. A payday loan is a very expensive source of quick cash. This is a fee-based service which can either be a percentage or a set amount of the money you need to borrow.
• Do not get an advance-fee loan. Please be aware it is illegal in Canada to ask for money upfront for a loan. Advance-fee loans are scams, plain and simple. If you choose not to borrow from a recognized financial institution protect yourself by researching the lender to make sure the company is a legitimate business.
• Do not pawn your possessions. A pawnshop loan is another expensive source of money. Loans do not generally represent the fair-market resale value of the item. Your possession remains in the pawnshop until you repay the loan. If you can’t repay the loan then it becomes the property of the pawnshop. There are other fees that may be charged which increase the cost of these loans. For your protection pawnshops are regulated under both the federal and provincial governments.