130 – Yes, We Have A Payday Loan Crisis

130 – Yes, We Have A Payday Loan Crisis

Author: Doug Hoyes February 25, 2017 Duration: 35:52

We have a crisis and it's called payday loans. At Hoyes Michalos we believe payday loans are a real problem because all too often they create a vicious cycle of debt. We also don't believe that recent efforts by the Ontario Government have been enough to deal with the hidden truth behind payday loans:  already indebted Ontarians are borrowing multiple payday loans, from multiple payday lenders at the same time, and this is contributing to a record rate of payday loan induced insolvencies.

How we know this is because every two years we analyze data from actual insolvencies to find out why someone files insolvency.  We call this our Joe Debtor study.  Part of our study includes a detailed dig into payday loan use by Joe Debtor so that we can isolate the behaviour and profile of the average insolvent payday loan user.

Our data points to four startling findings:

  1. 1 in 4 insolvent debtors had at least one payday loan at the time they filed a bankruptcy or consumer proposal.
  2. The average insolvent payday loan borrower has 3.4 payday loans with total outstanding balances of $2,997.
  3. Payday loans make up 9% of borrower's total unsecured debt of $34,255
  4. An insolvent debtor with payday loans owes 121% of their MONTHLY take home pay in payday loans.

Full details on the show with Doug Hoyes and Ted Michalos.


Doug Hoyes sits down each week with a different specialist to untangle the complicated feelings and hard numbers around owing money. The conversations in Debt Free in 30 move beyond simple scare tactics or dry theory, focusing instead on actionable strategies for managing debt, rebuilding savings, and making informed investing choices. You’ll hear from trustees, financial planners, and counselors who explain concepts in plain language, stripping away the industry jargon that often leaves people feeling overwhelmed. Whether it’s navigating a consumer proposal, understanding credit scores, or starting to invest with a tight budget, this podcast provides a clear-eyed look at the steps toward financial stability. Doug’s approach is grounded and pragmatic, reflecting his deep expertise in the field, making each episode feel like a direct consultation with a knowledgeable guide. Tuning in regularly offers a consistent source of demystified advice, turning what can be a stressful topic into a manageable process. It’s that blend of expert insight and relatable conversation that defines this particular personal finance podcast.
Author: Language: English Episodes: 500

Debt Free in 30
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