In New Brunswick, the most you can be charged for a payday loan is $15 per $100 borrowed. Payday loans are a very expensive way to borrow money. When you take out a payday loan, you pay high fees, you're charged a higher interest rate than on a regular loan or line of credit and you may have to pay a fee if your cheque or pre-authorized debit doesn't go through. These high fees can make it harder to pay back a payday loan.
Example: If your previous net pay is determined to be $1000, the most you can borrow is $300. If you take out a 14 day payday loan, at the maximum rate of $15 per hundred, the chart below shows you the maximum you can be charged:
Before you decide to take out a payday loan, consider alternatives. If you do take out a payday loan, be sure that you can pay it back by the time it is due. Otherwise you may go further into debt and damage your financial situation.
|Example of Payday Lender Maximum Amounts |
|Net Pay as determined by net pay formula ($)||Maximum amount you may borrow ($)||Maximum rate per hundred you can be charged||How much it will cost you ($)||How much you will have to repay ($)||APR (%) Annual Percentage Rate|