Payday loans are a popular way for people to get quick cash when they need it. Unfortunately, payday loans are illegal in Arizona, including San Manuel. In this article, we will discuss the reasons why payday loans are prohibited in Arizona and provide information on alternative solutions that are available to residents of San Manuel.
What are payday loans?
Payday loans are small short-term loans that are typically due on the borrower’s next payday. These loans are usually for amounts of $500 or less and come with high interest rates and fees. The borrower is required to write a post-dated check or provide their bank account information in order to receive the loan. If the borrower cannot pay the loan off on time, they may be charged additional fees and interest, leading to a cycle of debt.
Why are payday loans prohibited in Arizona?
In 2010, the Arizona legislature passed a law that made payday loans illegal in the state. The law was passed after a ballot initiative that was supported by over 60 percent of voters. The law was intended to protect consumers from predatory lending practices and payday lenders who were taking advantage of people who were in need of quick cash.
One of the main reasons why payday loans are illegal in Arizona is because of the high interest rates that lenders were charging. Lenders were charging interest rates that were as high as 460 percent, which made it nearly impossible for borrowers to pay back the loan. Additionally, payday lenders were not required to perform credit checks, which allowed them to lend money to people who could not afford to pay it back.
Alternative solutions to payday loans
While payday loans are illegal in Arizona, there are still alternative solutions available to residents of San Manuel who need quick cash. Some of these solutions include:
- Credit unions
- Banks
- Personal loans
- Short-term loans
- Credit cards
These alternatives may have lower interest rates and fees, making them a more affordable option for people in need of quick cash.
Facts and statistics about payday loans in San Manuel, Arizona
- Payday loans are illegal in Arizona, including San Manuel
- Payday lenders in Arizona charged interest rates as high as 460 percent before the law was passed in 2010
- The average payday loan borrower in Arizona takes out 10 loans per year
- In 2019, the average payday loan amount in Arizona was $441
Apply now
TheGuaranteedLoans provides a convenient online application process that connects borrowers with potential lenders. We are a connector service and not a direct lender. Our application process is quick, secure, and easy to complete.
If you are in need of quick cash and live in San Manuel, Arizona, please use our online application to get started. We strive to provide our customers with the best service and solutions possible.
Please Note: As payday loans are illegal in Arizona, we do not facilitate payday loan connections. However, we can connect you with alternative lenders that may be able to help meet your needs.
Conclusion
Although payday loans are not legal in San Manuel, Arizona, borrowers have alternatives that can help them get the quick cash they need without falling into a cycle of debt. It is important to carefully consider all of your options and choose a solution that is affordable and meets your needs.