There are better options when bills can’t be met, Betz said, and they should start with seeking help from an organization such as his which offers free credit counselling advice
CALGARY – If internet search trends are a window into the minds of consumers, then a recent report suggests that a growing number of Canadians are considering some ill-advised financial options, observers say.
The Boston-based marketing firm that studies internet search trends said Canadian searches for payday loans, meanwhile, fell by 43 per cent to 22,900 from 39,700 during the same period, which was marked by millions of people losing their jobs as non-essential stores and industries were forced to close in an effort to contain the spread of the COVID-19 virus.
The most surprising thing we noticed was an increase in search demand for car title loans which is, I think, quite unique for Canada compared to the United States, where we didn’t see this type of increase, said Eugene Levin, chief strategy officer for SEMrush, in an interview.
He said he doesn’t know why U.S. searches didn’t also rise but suggested a possible explanation for the increase in searches for car title loans and corresponding drop in payday loans in Canada could be that the potential applicants have a car but no job.
A lot of people have cars, said Levin. Terms on those loans are better than for payday loans, interest rates are lower, so they’re more attractive. At the same time, you don’t need a job to get a car title loan, unlike certain payday loans.
Amid a pandemic-related surge in interest in personal finance information, the number of searches involving car title loans almost tripled in Canada in the March-to-September period this year to 16,900 per month, compared with about 5,900 searches per month at the same time a year earlier, according to SEMrush
A car title loan works on the same basis as a home equity loan.