Payday loans have become a popular short-term financial solution for many Americans, but they are prohibited in several states, including Arizona. Saint Johns, a small city in Apache County, Arizona is no exception.
What is a payday loan?
A payday loan is a small, short-term loan that is typically due on the borrower’s next payday. The borrower writes a post-dated check for the loan amount plus fees, which the lender holds until the borrower’s payday.
Payday loans are intended to be a quick and easy solution to unexpected expenses or cash flow problems. However, they often come with high interest rates and fees that can trap borrowers in a cycle of debt.
Payday loans in Saint Johns, Arizona
As previously mentioned, payday loans are prohibited in Arizona. According to Arizona Revised Statutes Section 6-632, loans with an annual percentage rate (APR) of more than 36 percent are illegal. Payday loans typically have APRs of 400 percent or more, making them illegal in Arizona.
Why are payday loans prohibited in Arizona?
Payday loans have been the subject of much controversy and criticism over the years because of their high interest rates and fees. Proponents of payday loans argue that they provide much-needed financial assistance to people who are unable to access traditional forms of credit. However, critics argue that payday loans exploit vulnerable individuals and trap them in a cycle of debt that is difficult to escape.
In response to these concerns, several states, including Arizona, have passed laws to either prohibit payday loans or impose strict regulations on them.
Alternatives to payday loans
If you find yourself in need of quick cash in Saint Johns, Arizona, there are several alternatives to payday loans that may be more affordable and less risky:
- Credit cards: If you have a credit card, you may be able to use it to cover your unexpected expenses. While credit cards can have high interest rates, they are still usually less expensive than payday loans.
- Personal loans: Depending on your credit history, you may be able to qualify for a personal loan from a bank or credit union. Personal loans typically have lower interest rates than payday loans and longer repayment terms.
- Government assistance: If you are eligible, you may be able to receive government assistance in the form of food stamps, housing assistance, or cash assistance.
The dangers of payday loans
While payday loans may seem like a convenient and easy solution to your financial problems, they are often a risky and expensive choice. Payday loans can trap you in a cycle of debt that is difficult to escape, and they can even lead to bankruptcy.
If you are considering a payday loan, it is important to carefully consider the risks and alternatives before making a decision.
Interesting facts and statistics about payday loans
- The average payday loan borrower takes out eight loans a year, spending $520 on interest and fees alone.
- 75% of payday loans are taken out by people who take out more than 10 loans a year.
- Payday loans are banned in 14 states and the District of Columbia.
Apply Now
TheGuaranteedLoans is a connector service that can help you connect with a lender that fits your financial needs. Even though payday loans are illegal in Arizona, we can assist you in finding other short-term loan options.
Simply fill out our online application and we will match you with a potential lender. Remember, TheGuaranteedLoans is not a direct lender, and we do not make credit decisions. Our goal is to connect you with a lender that meets your financial needs.
In conclusion
Payday loans are illegal in Arizona, including Saint Johns. While they may seem like a convenient solution to your financial problems, they can lead to a cycle of debt that is difficult to escape. Instead of turning to payday loans, consider alternative options such as credit cards and personal loans. And if you need help finding a lender that meets your needs, consider using TheGuaranteedLoans to connect you with potential lenders.