Interest in Loans Is Growing Among Canadians

According to statistics, the amount of mortgage and consumer debt in Canada is steadily increasing. Only in the first three months of 2017, there was a noticeable growth of $ 21,696 and the annual increase in debt is up to 1.9%.

At the same time, it was noted that the percentage of overdue payments on loans significantly decreased:

- In Toronto at 7.55%.
- In Winnipeg at 3.9%.
- In Montreal at 2.51%.

The fall in interest on the payment of loans can be explained by the greater availability of the loans nowadays. More and more of Canadians are able to pay monthly payments through new personal loans. Thus increasing the amount of their own debt.

Credit Cards and Other Loans

In 2017, 20.4 million citizens of Canada are owners of credit cards. This is 3.5% more than in 2015. The colossal growth can be explained by the stability of the country's economy. This causes lenders to relax and provide loans to the high-risk customers.

The most common reasons for the growth of non-mortgage debt in the first three months of 2017 are:

- Instalment loans $24,795.
- Auto loans $20,141.
- Credit cards $3,904.
- Lines of credit $29,793.

The Role of Internet Lenders in Increasing the Debt of Canadians

Loans have become more affordable not only because of the confidence of borrowers in the economy but also due to the appearance of a large number of online lenders.

Financial services on the Internet are ready to provide online loans to people with a good and bad credit level. And taking out the loan online is easier in the most of the times. There are also websites that help borrowers find a lender, acting as an intermediary. An example of such a service is NorthnLoans.ca online loans site at https://northnloans.ca/. A person just needs to fill out a simple form on the website and they will receive a response from a particular lender who is ready to propose a loan.

Household Debt and Financial Literacy

The main reason for the big household debt among Canadians and increasing of the interest in loans is lack of awareness and understanding of credit risks.

Statistics show that people with great household debt are mostly well-educated young people with families and a salary higher than average. According to the studies, such people assessed their ability to manage the family budget as good and very good. While people with less debt gave themselves a lower esteem. This fact confirms lack of awareness as a factor of high interest and need of Canadians in loans. Even having a good salary does not stop people from taking short-term loans to cover their expenses.

Payday loans are also very popular among Canadians. Most often they are resorted to in a situation where money is needed urgently and this type of loan was designed specifically for such situations.

Emergency loans are also used to repay monthly payments on other loans. The biggest factor in the popularity of this type of loan product is its availability. Such loan can be taken out almost by any person, while the lender insures himself with a high-interest rate.

North'n'Loans is an online-based company providing financial services in Canada. The company connects the customers with the direct lenders upon their request in a form of the application submitted on the site.

North'n'Loans
1 Yonge Street, Suite 1801
Toronto, ON
M5E1W7
Canada
admin@northnloans.ca

This release was published on openPR.