Those answers may reflect respondents’ reports of why they sought a payday loan in the first place

Those answers may reflect respondents’ reports of why they sought a payday loan in the first place

??APR is here calculated as fee charged (assumed at $21) divided by amount borrowed ($100), multiplied by number of payments this would represent over a year if rolled over consistently (26), multiplied by 100. For a two-week loan, this equates to an annual percentage rate (APR) of 546 percent (APR = X 26 X 100 = 546).

Annual Percentage Rate (APR), which includes interest and all fees, fines, penalties, commissions or other similar charges payable in exchange for the credit advanced.

As a basis for this survey, FCAC adopted elements of a survey used by the Ontario Ministry of Government and Consumer Services. FCAC added additional questions from a recent OECD International Network on Financial Education (INFE) survey, and from the Canadian Financial Capability Survey.

See Braunsberger, K., Wybenga, H., & Gates, R. (2007). “A comparison of reliability between telephone and web-based surveys.” Journal of Business Research, 60(7), 758-764. It is possible that those individuals with higher literacy skills were more likely to choose to participate in an online survey. The Ontario survey that was used as a base for this survey was also conducted online.

See Payday loans. Costs shown are for illustration only and are based on these assumptions: payday loan costs $21 per $100; line of credit includes a $5 administration fee plus seven percent annual interest; overdraft protection includes a $5 fee plus 19 percent annual interest; credit-card cash advance includes a $5 fee plus 21 percent annual interest.

Respondents were asked to select all that apply. Summing all options will therefore add up to more than 100 percent.

Respondents were asked to select all that apply. Summing all options will therefore add up to more than 100 percent.

Eighty-nine percent of respondents selected at least one of the first three categories (i.e., necessary and unexpected, necessary and expected, or to avoid late charges on bills).

This seven percent rollover number is not clearly reflected in responses to the earlier question reported in subsection 4.5 (“Reasons for loans”).

17 percent could continue less than a week and 20 percent could continue at least a week, but not more than one payday loans in Piqua OH month.

Sussman, A. B., & O’Brien, R. L. (in press). “Knowing when to spend: Unintended financial consequences of earmarking to encourage savings.” Journal of Marketing Research.

The Pew Charitable Trusts. (2016). The Role of Emergency Savings in Family Financial Security: Barriers to Saving and Policy Opportunities. Retrieved from

Those answers may reflect respondents’ reports of why they sought a payday loan in the first place

Kan, C., Lynch, J., & Fernbach, P. (2015). How budgeting helps consumers achieve financial goals. Advances in Consumer Research, 43, 74-79.

Fernbach, P. M., Kan, C., & Lynch, J. G. (2015). Squeezed: Coping with constraint through efficiency and prioritization. Journal of Consumer Research, 41, 1204-1227.

Note that the category labeled “Sometimes” in the payday loan survey was labeled “Rarely” in the CFCS

The Pew Charitable Trusts. (2016). The Role of Emergency Savings in Family Financial Security: Barriers to Saving and Policy Opportunities. Retrieved from

For general population figures, see Financial Consumer Agency of Canada. (2015). “ Managing Money and Planning for the Future: Key Findings from the 2014 Canadian Financial Capability Survey”. Ottawa.

Simhon, Y. (2016, June). Financial Literacy and Retirement Well-Being in Canada: An Analysis of the 2014 Canadian Financial Capability Survey. Paper presented at the 50 th Annual Conference of the Canadian Economics Association, Ottawa, Canada. The logistic regression analyses controlled for age, gender, marital status, income quintile and highest level of education.

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