Magical Credit Blog

A loan is essential if you have a sudden expense that you need to cover. In fact, a recent Finder survey found that more than nearly two-thirds of Canadians have taken out a personal loan in the past. In this lies the advantage of personal loans as unlike with other credit such as bank loans or mortgages, the purpose of your loan isn’t disclosed.

Loans have become incredibly important in our modern daily lives of spending. Everything from overdue bill payments to unforeseen childcare expenses, numerous medical expenses not covered under your OHIP or even legal fees are all funds that cannot be ignored. However, at the same time, the funds required to pay off these necessary expenses can’t simply pop out of thin air.

Working with loans has been one of the most popular avenues to take in our age of mass consumerism that has resulted in the greatest of successes and the greatest of failures. As with anything, a moderate, healthy amount can bring you substantial gains but overstretching your boundaries can lead to equally great losses.

Not everyone can walk into the local bank and walk out with a loan. In times past, that left people who needed financing and were capable of repaying the balances with few alternatives. In recent years, some non-traditional lenders have stepped up and offered options to these borrowers who would otherwise be forgotten.

Mortgages have become a necessity in the life of anyone aspiring to own a home as real estate prices have soared across population-dense urban zones such as those of the Greater Toronto Metropolitan Area. Mortgage borrowing has reached an all-time high with 63% of Canadian families owning a home as of the 2016 Canada Census whilst the percentage of those who have paid off the mortgage on their principal residence has declined to 43% from 46% in 1999.

Walking into a bank to discuss opening a credit account under your name may sometimes feel like a soldier marching into war. No one is denying that credit is necessary to live our daily lives by doing everything from paying the bills during tough financial months or to covering unforeseen legal and medical expenses. However, keeping the right balance is crucial to maintaining your financial stability.

Personal loans are nowadays an indispensable part of people’s financial lives. Loans are used to pay for everything from unforeseen medical expenses to legal fees to automobiles and homes. It has been found that 26% of Canadians are planning to take out a loan in 2021 and out of 1200 Canadian adults surveyed 65% had taken out a personal loan in the past.