People are often persuaded to pursue the idea of a payday loan, especially in times where the economy is being hit particularly hard.

The premise of payday loans is a cash advance service so people may make ends meet until the distribution of their next paycheck. The marketing strategies of quick cash payday centers makes it look extremely easy, safe and affordable to receive a payday cash loan.

And while it is legal, in the province, as you look closer, there is more at stake for the consumer than just an elevated interest rate. Frequent use of payday loan services can generate hidden costs which can excessively add up over time. The average $200 loan charges the client 23 per cent interest. Over a period of weeks, this can add up to hundreds of dollars of interest fees, leaving the client deeper in debt than before even taking out the first loan.

The Financial and Consumer Affairs Authority advises residents to avoid payday cash advance loans altogether.

If clients feel they must use the service, it is advised they use the services as sparingly as possible in order to avoid getting caught in a debt cycle. It is also wise not to piggy-back loans, which would involve taking out a second loan in order to pay off the first.

Should the client change their mind after taking out the loan, the client has until the next business day to return the money and ultimately cancel the loan.

For more information on the consequences of payday loan advances, visit the FCAA's website:

 www.fcaa.gov.sk.ca/paydayloans2016