In Evansville, Arkansas, payday loans are prohibited by law, meaning that there are no legal payday lending stores operating in this area. While this may seem like bad news for those in need of short-term loans, there are still several options available that will help you get the cash you need when you need it.
What is a Payday Loan?
A payday loan is a type of short-term loan that is typically used to help bridge the gap between paychecks. They are designed to be repaid in full, along with any interest or fees, on the borrower’s next payday.
These loans are typically easy to obtain and often don’t require a credit check. The downside, however, is that they typically come with high interest rates and fees, which can make them difficult to repay and can lead to a cycle of debt if not managed responsibly.
Why are Payday Loans Prohibited in Arkansas?
The state of Arkansas has some of the strictest laws in the country when it comes to payday lending. In 2008, the state passed the Arkansas Check Casher Act, which prohibits payday lending stores from operating in the state.
This law was passed in response to concerns about the high-interest rates and fees associated with payday loans. Lawmakers were also concerned about the growing number of consumers who were becoming trapped in a cycle of debt as a result of these loans.
Alternatives to Payday Loans in Evansville, Arkansas
Despite the fact that payday loans are prohibited in Arkansas, there are still several options available for those in need of short-term loans. Here are a few alternatives to consider:
Personal Loans
Personal loans are a great option for those in need of quick cash. These loans typically have lower interest rates than payday loans and can be repaid over a longer period of time, making them a more manageable option for many borrowers.
Many banks, credit unions, and online lenders offer personal loans, so it’s worth shopping around to find the best rates and terms for your needs.
Credit Cards
If you have an existing credit card, you may be able to use it to cover your expenses. While credit cards often come with high-interest rates, they are a better option than payday loans as long as you can make your payments on time.
Just be sure to read the fine print and be aware of any fees associated with using your credit card for cash advances or other expenses.
Local Programs and Charities
There are several local programs and charities in Evansville that may be able to provide assistance to those in need of financial help. These programs may offer assistance with rent, utilities, or even medical bills.
Be sure to do your research and find out what programs are available in your area. Some organizations may have specific eligibility requirements, so it’s important to read the fine print before applying.
Online Lenders
While you should be cautious when working with online lenders, there are plenty of reputable lenders out there who can provide you with the funds you need quickly and easily.
Be sure to do your research and read reviews of any lender you are considering working with. You should also be aware of any fees or high-interest rates associated with the loan before accepting it.
Interesting Facts and Statistics about Payday Loans
- In 2019, the average payday loan in the United States was $375, with an average interest rate of 391%
- 12 million Americans take out payday loans each year
- Payday loans are banned in 14 states, including Arkansas
- The average payday loan borrower takes out eight loans per year
- Payday loans are often used by low-income earners who may not have access to other forms of credit
Apply Now
While payday loans may be prohibited in Arkansas, there are still plenty of options available for those in need of short-term loans. TheGuaranteedLoans is a connector service that can help connect you with potential lenders who can provide you with the funds you need quickly and easily.
Just remember, it’s important to be responsible when taking out any type of loan. Be sure to read the fine print and understand any fees or high-interest rates associated with the loan before accepting it. If you’re not sure whether a loan is right for you, consider reaching out to a financial advisor or credit counselor for guidance.