A Comprehensive Guide to Payday Loans in Kansas, Alabama
If you’re in a bind and need cash fast, payday loans can be a tempting solution. But before you sign on the dotted line, it’s important to understand how payday loans work and the potential risks involved.
What are payday loans?
Payday loans are short-term loans that typically have to be repaid with your next paycheck. In Kansas, payday loans are illegal. However, in Alabama, they are legal and regulated by the Alabama State Banking Department.
These loans are intended to be a quick and easy way to get cash when you’re in a financial pinch. Typically, payday lenders don’t require a credit check, and you can usually get the money you need within a day or two.
How do payday loans work in Alabama?
In Alabama, the maximum amount you can borrow with a payday loan is $500. The loan term can range from 10 to 31 days, and the lender can charge up to 17.5% of the loan amount as a finance charge.
There are also limits on the number of payday loans you can have at once. You can only have one outstanding payday loan at a time, and you can’t take out more than one payday loan from the same lender within a 24-hour period.
What are the risks of payday loans?
While payday loans can be convenient in the short term, they can also be incredibly risky. The high interest rates and fees associated with these loans can make it difficult to pay them back on time, leading to a cycle of debt that can be hard to break.
For example, in Alabama, a $100 payday loan with a 14-day term carries a finance charge of $17.50. That may not sound like much, but if you have to roll over the loan multiple times, those fees can quickly add up. In fact, if you rolled over that $100 loan eight times, you would end up paying $140 in fees alone.
Additionally, if you’re unable to pay back your payday loan on time, the lender may try to take the money directly from your bank account. This can lead to overdraft fees and other financial problems.
Interesting facts and statistics about payday loans in Kansas and Alabama.
- According to the Pew Charitable Trusts, the average payday loan borrower in Alabama takes out eight loans a year, with each loan averaging $327.
- In 2019, more than 246,000 people in Alabama took out payday loans.
- The maximum APR (annual percentage rate) for payday loans in Alabama is 456%, according to the Center for Responsible Lending.
- Mississippi and Alabama are tied for the highest concentration of payday lenders per capita, according to the Center for Responsible Lending.
- One study found that payday loan borrowers are more likely to file for bankruptcy than those who don’t use payday loans.
Apply now with TheGuaranteedLoans
If you’re in need of cash and considering a payday loan, TheGuaranteedLoans can help connect you with potential lenders. We’re not a direct lender, but rather a connector service that works with a network of reputable lenders to help you find a loan that fits your needs.
Applying is easy and straightforward. Simply visit our website and fill out our online application to get started. Remember, it’s important to read the terms and conditions carefully before accepting any loan offer.
At TheGuaranteedLoans, we’re committed to helping you find the financial solutions you need. Contact us today to learn more.