Payday Loans in Calion, Arkansas: What You Need to Know
If you’re looking for a payday loan in Calion, Arkansas, you should know that payday loans are prohibited in Arkansas. This means that if you’re in need of quick cash, you’ll need to explore other options. In this article, we’ll discuss what a payday loan is, why they’re prohibited in Arkansas, and what alternatives you can consider if you’re in need of a short-term loan in Calion.
What Is a Payday Loan?
A payday loan is a short-term loan that is usually due on your next payday. These loans are typically small, with the average loan amount being around $350. Payday lenders make money by charging high interest rates and fees on these loans. According to the Consumer Financial Protection Bureau (CFPB), payday loans can have interest rates as high as 400%. These high interest rates and fees can quickly trap borrowers in a cycle of debt.
Why Are Payday Loans Prohibited in Arkansas?
Payday loans are prohibited in Arkansas under the Arkansas Check Cashers Act. This law, which was passed in 2009, prohibits payday lenders from charging more than 17% interest on loans. This effectively makes payday lending unprofitable in Arkansas. In addition, the Arkansas Attorney General’s office has taken legal action against payday lenders who attempt to circumvent this law by partnering with out-of-state banks or offering loans online.
Alternatives to Payday Loans in Calion, Arkansas
If you’re in need of a short-term loan in Calion, Arkansas, there are several alternatives to payday loans that you can consider:
- Credit Cards: If you have a credit card, you may be able to use it to make a purchase or withdraw cash. While credit cards can have high interest rates, they’re usually much lower than payday loan interest rates.
- Personal Loans: Personal loans are installment loans that are paid back over time. You can apply for a personal loan from a bank, credit union, or online lender. Interest rates on personal loans can vary widely, so it’s important to shop around and compare offers from multiple lenders.
- Credit Counseling: If you’re struggling with debt, you may be able to get help from a credit counseling agency. These agencies can work with you to create a budget and negotiate with your creditors to lower interest rates and payments.
- Side Hustles: If you’re in need of extra cash, you can consider taking on a side gig, such as freelancing, pet-sitting, or driving for a ride-sharing service.
Interesting Facts and Statistics
- According to the Arkansas Attorney General’s office, payday lenders in Arkansas charged an average interest rate of 582% in 2015
- In 2018, Arkansas voters approved a ballot initiative to cap interest rates on payday loans at 36%
- Arkansas is one of 18 states that have prohibited payday lending
Apply Now
If you’re in need of a short-term loan in Calion, Arkansas, TheGuaranteedLoans can help you connect with potential lenders. Our online application process is fast and easy, and we work with lenders who offer a variety of loan types and repayment terms. Please note that TheGuaranteedLoans is a connector service, not a direct lender. That means that we don’t make credit decisions and we don’t lend money. Instead, we facilitate your connection with potential lenders who may be able to offer you a loan.
The Bottom Line
While payday loans may seem like a quick and easy solution to financial problems, they often come with high interest rates and fees that can trap borrowers in a cycle of debt. If you’re in need of a short-term loan in Calion, Arkansas, consider the alternatives we’ve outlined in this article, and don’t hesitate to reach out to TheGuaranteedLoans for help connecting with potential lenders.