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 % lived in a area that is urban and 55 per cent rented their property (while 32 per cent owned a property with home financing and nine per cent owned one without a home loan. )
More participants had incomes that are low-to-moderate.
Figure 2: Home earnings
|lower than $32K||28|
As shown in Figure 2, over 50 per cent lived in households with annual incomes under $55,000, and over 70 percent lived in households with incomes under $80,000. Nevertheless, 20 per cent reported home incomes surpassing $80,000, with seven per cent over $120,000, demonstrating that cash advance use just isn’t limited to low-income Canadians. Footnote 11
This demographic information will assist FCAC to tailor educational resources.
4.2. Understanding expenses
Payday advances can be a high priced solution to borrow funds. As shown in Figure 3 Footnote 12, they truly are much more high priced than many other short-term credit choices.
Figure 3: pay day loan price vs. Alternative methods of borrowing (predicated on a $300 loan taken for a fortnight)
|Borrowing from credit line||Overdraft protection on a banking account||cash loan on credit cards||cash advance|
Regardless of this, less than 50 % of respondents comprehended that a payday loan is more costly than a superb stability or advance loan on a charge card (see Figure 4). This suggests that almost all participants weren’t conscious of the general expenses of most credit that is short-term and may also be utilizing payday advances more regularly because of this.