If you are squeezed for cash you may be tempted to apply for a payday loan – but make sure you know your facts before you do. Payday loans are high-cost loans. The maximum allowable cost of borrowing is $25/ $100 in Nova Scotia.
Payday loans are usually due to be repaid with the next pay cheque you receive. Lenders may charge different rates if you're able to pay the loan back sooner. If you cannot afford to make the full repayment with your next cheque, you may be faced with more fees and interest.
The provincial government regulates the lenders who make these loans. They are licensed and must follow several other rules.
The cost of borrowing was reduced by the Nova Scotia Utility and Review Board, effective April 1, 2011. You can read the decision, which includes several other recommendations, at the UARB web site.