Expensive Debt Is Not The Answer

A number of people turn to non-banking sources for credit, even though they have bank accounts. These people are often get trapped in a cycle of expensive, easy-access credit such as payday loans and ultra high-interest loans. Once in this type of debt, it becomes extremely difficult to get out.

Traditional Approach

Typically individuals will identify a credit source, obtain the loan, then struggle on their own to try to make the required repayments based on the lender’s schedule. Very often they are unsuccessful, which puts them further behind. People in this situation often don’t receive credit counselling or similar help until they declare bankruptcy.

Impact Lab Approach

Provide education and advice, in addition to loans, to help people avoid or get out of high-interest debt. Structure loan repayments according to the individual’s cash flow to help ensure success. Incentivize better behaviours and move high-risk individuals into mainstream banking relationships.

How Do We Make An Impact?

Reduce cost of borrowing

Success Meter

Change in fees and interest paid

Reduce percentage of income that services short-term debt

Success Meter

Change in percentage of gross monthly income that goes to non-housing related debt payments

Create opportunities to better access mainstream financial services

Success Meter

Percentage of borrowers in program who develop a primary banking relationship with a mainstream financial institution such as DUCA

Reduce likelihood that borrower will take another high-risk loan

Success Meter

Percentage of borrowers who open a DUCA account from which they make payments to a payday lender within 12 months of repaying their last loan

Increase positive financial behaviours

Success Meter

Percentage of people who complete the program and open a savings account, TFSA or RRSP

Do you feel you could benefit from this program?

If so, we’d like to hear from you.

Simply provide us with your name and contact information, and we’ll be in touch to discuss how you can get involved. Your information will be kept confidential and will only be used to contact you about this program.

Program Partners

We are working with these partners to find innovative solutions and start making an impact for credit challenged individuals. Click the link below to learn more about them and how they are working to help make a difference.