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This is the stuff you millionaires in the making need to know to kick start or propel you on your financial fitness journey. Tracey Bissett, Founder of Bissett Financial Fitness and award winning Financial Literacy Champion, gives you the straight goods each week to set yourself up for financial success. As a former executive at TD Bank, one of Canada's Big 5 Banks, Tracey has worked with and in support of thousands of individuals and entrepreneurs to secure the financing they needed.  This hands on experience combined with her formal financial education, Masters of Business Administration and Chartered Financial Analyst designation, position Tracey uniquely to coach all things money. Tracey goes behind-the-scenes of all the money matters with need-to-know tips, money-making demystified, and special power-player interviews. Join us weekly for Financial Fitness Training that will turn even a Cash Couch Potato into a Marathon Money Maker.

Aug 14, 2018

For many millionaires-in-the-making, getting an advance on your pay cheque may sound like a dream come true. The idea and concept of getting a payday loan may seem great on the surface - and may even help you pay for unexpected bills and expenses that come up between pay cheques - but they can often lead to long-term financial trouble.


Like any loan, payday loans need to be paid back, and many young millionaires-in-the-making may not realize the negative impact these loans can have on their financial future.


Today, I explain what payday loans are as well as the dangers of getting a payday loan to help pay for your expenses. I explain the true purpose of a payday loan, the maximum amount you can borrow as well as the financial and legal implications you may face by not paying it back on time. I also explain why payday loans are considered one of the most expensive money-borrowing options and share alternative options you should consider the next time you need to borrow money.


“Once you start using payday loans, you can get caught in a vicious cycle that necessitates their continued use.” - Tracey Bissett


This Week on Young Money:


  • What payday loans are and how they work.
  • The maximum amount you can borrow from your pay cheque.
  • The true purpose of payday loans and the dangers of using them for day-to-day expenses.
  • What to expect when applying for a payday loan.
  • The importance of reading, understanding, and asking questions about a payday loan agreement before you sign.
  • The true cost of payday loans and how it compares to borrowing by way of a line of credit, overdraft protection, and a credit card cash advance.
  • The mild and severe legal implications you can expect if you don’t pay back your payday loan on time.
  • Alternative money-borrowing options.


Money-Borrowing Alternatives to Payday Loans:


  1. Talk to your employer about converting your vacation days into cash.
  2. Ask for more time to pay your bills - creditors can be flexible if you have a plan for repayment.
  3. Consider cheaper ways to borrow money:
  • Line of credit
  • Overdraft protection
  • Cash advance on a credit card
  • A personal loan
  • A private loan from friends or family


Resources Mentioned:



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