As of July 1, 2010, payday loans became illegal in the state of Arizona. This includes payday loans offered in Waddell, Arizona. However, borrowers in need of quick cash may still be able to find alternative lending options.
Why Did Payday Loans become Illegal in Arizona?
Before July 2010, payday loans were legal in Arizona. However, after a ballot initiative called Proposition 200 failed to pass in 2008, the state’s payday lending industry began to decline.
Then, in 2010, the Arizona legislature allowed the payday loan industry to expire. Without legislative action to renew the payday lending law, all payday loans in the state became illegal on July 1, 2010.
What Are Payday Loans?
A payday loan is a type of short-term loan that typically has a high-interest rate. These loans are designed to be repaid quickly, often within two weeks or by the borrower’s next payday. The borrower writes a postdated check to the lender for the loan amount plus fees and interest. If the borrower cannot repay the loan on time, the lender may cash the check.
Payday loans are controversial because of their high interest rates, which can result in borrowers paying far more than the original loan amount in fees and interest.
Alternative Lending Options in Waddell, Arizona
While payday loans are illegal in Arizona, borrowers in need of quick cash may still be able to find alternative lending options.
1. Installment Loans
Installment loans are similar to payday loans in that they are short-term loans. However, these loans are typically repaid over a period of several months with equal payments. Interest rates can be high, but they are lower than the interest rates charged for payday loans.
2. Title Loans
Title loans are secured loans that use the borrower’s vehicle as collateral. The amount of the loan is based on the value of the vehicle. Interest rates can be high, but they are typically lower than the interest rates charged for payday loans.
3. Personal Loans
Personal loans are unsecured loans that do not require collateral. These loans can be obtained from banks, credit unions, or online lenders. Interest rates can vary depending on the lender and the borrower’s credit history.
Facts About Payday Loans in Waddell, Arizona
- The average payday loan in Arizona was $410 in 2005.
- The average interest rate on a payday loan in Arizona in 2005 was 459 percent.
- Payday lenders in Arizona made more than $37.8 million in fees in 2006.
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If you are in need of quick cash, TheGuaranteedLoans can help connect you with potential lenders. Remember, TheGuaranteedLoans is a connector service and not a direct lender. Fill out an online application today to see if you qualify for an alternative lending option.
While payday loans are illegal in Waddell, Arizona, borrowers in need of quick cash may still be able to find alternative lending options. Installment loans, title loans, and personal loans are all options to consider. Always read the terms and conditions of any loan before signing on the dotted line. And remember, never borrow more than you can afford to repay.