37% of Insolvencies contain Payday Loans

The proportion of insolvent borrowers using payday loans in Ontario is on the rise, according to a new report, which revealed four in 10 insolvencies in 2018 can be traced back to the costly type of loan.  1

The average insolvent payday loan borrower now owes $5,174 in payday loans on an average of 3.9 different loans, according to the report. 

A Universal Basic Income can help Canadians from the poverty in which they can be trapped using loans in times of need.

When the government examines at it’s costs and weighs the topic of BI they don’t account for the savings to the families that avoiding costly loans. By creating a BI it can help by injecting families and households with a stable income that can be more relied upon for basic necessities rather than a loan with interest charges.

1 https://www.bnnbloomberg.ca/37-of-ontario-insolvencies-involve-payday-loans-survey-finds-1.1216367

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