Payday Loans in Pima, Arizona
Payday loans are short-term loans that are typically used for emergency expenses such as car repairs, medical bills, or unexpected bills. These loans are usually repaid on the borrower’s next payday. While they can be helpful in certain situations, payday loans are not legal in the state of Arizona, including Pima County.
Why Are Payday Loans Prohibited in Arizona?
Payday loans were banned in Arizona in 2010 due to the predatory nature of the industry. Many payday lenders were charging exorbitant interest rates and fees, trapping borrowers in a cycle of debt. Arizona voters overwhelmingly supported the initiative to ban payday loans, with 60% of voters in favor.
Payday loans can be a quick and easy source of cash, but they often come with hidden fees and interest rates that can trap borrowers in a cycle of debt. In Arizona, the average payday loan carries an interest rate of 400%, making it nearly impossible for borrowers to repay the loan on time.
What Are the Alternatives to Payday Loans in Pima, Arizona?
If you’re in need of emergency cash, there are several alternatives to payday loans that are legal in Arizona. These include:
- Credit unions: Many credit unions offer low-interest loans to their members. Check with your local credit union to see if you qualify for a loan.
- Personal loans: Personal loans are another option for emergency cash. You can typically get a personal loan from a bank or online lender. Make sure to compare interest rates and fees before applying.
- Credit cards: If you have a credit card, you can use it to pay for emergency expenses. Just be sure to pay off the balance as soon as possible to avoid high interest charges.
- Friends and family: Consider reaching out to friends or family members for a loan. Just be sure to put the terms of the loan in writing to avoid any misunderstandings.
Interesting Facts about Payday Loans in Pima, Arizona
- In 2008, Arizona voters rejected a ballot initiative that would have legalized payday lending in the state.
- Payday lenders often target low-income communities and people of color.
- The average payday loan borrower takes out 8 loans per year, with an average loan amount of $375. This results in $520 in fees and an annual interest rate of 391%.
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While payday loans are not legal in Arizona, TheGuaranteedLoans can help connect you with potential lenders for other types of loans. We are a connector service and not a direct lender. Our goal is to help our customers find the best loan option for their needs. Fill out our online application today to get started.