Payday Loans in Heber, Arizona: An Overview
If you’re looking for a payday loan in Heber, Arizona, you’re out of luck. Payday loans are prohibited in the state of Arizona, as of July 2010. In this article, we’ll explore what payday loans are, why they’re banned in Arizona, and what alternatives are available to those seeking short-term cash.
What Is a Payday Loan?
A payday loan is a type of short-term loan that is typically due on the borrower’s next payday. Payday lenders often require a post-dated check or automatic withdrawal authorization as collateral for the loan. The loans are designed to provide quick cash to those in need, but they come with incredibly high-interest rates.
Why Are Payday Loans Prohibited in Arizona?
Arizona voters, in 2008, approved a ballot initiative called the Arizona Deferred Presentment Services Reform Act. The act aimed to cap interest rates for payday loans at 36 percent. However, payday lenders found a loophole by instead registering as “consumer access companies” that offer loans of more than $10,000. Lenders were still charging exorbitant interest rates but were no longer operating under the payday loan regulations.
The Arizona State Legislature took action to close the loophole, passing legislation in 2010 that essentially prohibited payday lending outright.
Alternatives to Payday Loans
While payday loans are off the table, there are still some alternatives for those needing quick cash in Heber, Arizona. Here are a few options:
Credit Card Cash Advance: A credit card cash advance allows you to withdraw cash from your credit card. Interest rates are generally lower than those charged by payday lenders, but you’ll still pay a fee and high-interest rates.
Personal Loans: Personal loans are installment loans with fixed repayment terms. Interest rates are typically lower than payday loans, and the repayment term is longer.
Credit Counseling: Credit counseling services can work with you to create a budget and payment plan. They may also be able to negotiate with creditors to lower your interest rates.
Facts About Payday Loans in Heber, Arizona
Did you know that:
- Payday loans in Arizona had an average interest rate of 399 percent before they were banned.
- The average payday loan borrower in Arizona takes out 10 payday loans per year.
- Payday lenders in Arizona made more than $84 million in 2015 before the ban.
Apply Now
If you’re in need of cash, consider one of the alternatives we’ve outlined above. If you’re interested in exploring your options further, TheGuaranteedLoans can help connect you with potential lenders. Fill out our online application today to get started. Remember, we are not a direct lender, but we connect borrowers with potential lenders.
In conclusion, payday loans are prohibited in Arizona, including Heber, due to their predatory nature. It’s important to explore alternative options if you need short-term cash. Remember to choose a loan option with reasonable interest rates and repayment terms.