The Truth About Payday Loans in Armorel, Arkansas
Payday loans can seem like an excellent solution to your immediate financial needs. However, before deciding to get one, you should consider the risks involved. The state of Arkansas has prohibited payday loans, including in the city of Armorel. So, if you live in Armorel or any other city in Arkansas, you cannot legally apply for a payday loan.
Why are Payday Loans Prohibited in Arkansas?
In 2009, payday lending business operations were banned in Arkansas, including online payday loans. The main reason for the ban was to protect Arkansas consumers from the harmful practices that had become synonymous with payday lending. Lenders were known to charge exorbitant interest rates on small-dollar loans, harm individuals’ financial stability by forcing them into a cycle of debt, and make it difficult for people to repay their loans due to high interest rates and hidden fees. Therefore, to ensure the safety of Arkansans, the state had to ban payday lending.
What are the Alternatives to Payday Loans in Armorel, Arkansas?
Even though payday loans are prohibited in Arkansas, there are several alternatives you could consider if you need immediate cash. These options include:
- Personal Loans: If you have a good credit score, you can apply for a personal loan from a trusted financial institution. You’ll usually pay a lower interest rate and have a longer repayment period than with payday loans.
- Credit Counseling: Credit counseling is where a credit counselor works with you to develop a budget and a debt management plan that fits your unique financial needs. While this doesn’t earn you immediate cash, it’ll help you get back on track financially.
- Credit Card Cash Advance: If you have a credit card, you can obtain a cash advance. It’s not a perfect solution, but it’s typically less expensive than payday loans.
- Borrowing from Friends or Family: While it may be uncomfortable to ask for help from family or friends, it could be the solution you need to get out of a temporary financial crisis. Furthermore, it could be cheaper and less stressful than using payday loans.
The Statistics Don’t Lie
According to research, around 12 million Americans use payday loans each year. Also, payday loans cost borrowers around $9 billion in fees. The average payday loan borrower takes out eight loans per year, and the average loan size is $375. Furthermore, the average borrower spends $520 in interest and fees
Apply for a Loan with TheGuaranteedLoans
If you are looking for a reliable lender, TheGuaranteedLoans can help you to connect with a trusted lender. Although payday loans are banned in Arkansas, you can still apply for other types of loans like personal loans, installment loans, and title loans. Our application process is fast, secure, and stress-free. Also, TheGuaranteedLoans connects borrowers with lenders, but we are not a direct lender. You can borrow from $100 to $10,000 depending on your credit score! Apply now and get your cash within the next business day.