Payday Loans in Franklin, Arkansas: All You Need to Know
When you’re facing a financial emergency and you don’t have the funds to cover it, a payday loan can seem like a quick and easy solution. However, if you’re considering a payday loan in Franklin, Arkansas, there are a few things you need to know.
First and foremost, payday loans are prohibited in Arkansas. That means that payday lenders cannot legally operate in the state, and Arkansans cannot take out payday loans.
What is a payday loan?
Before we dive into the details of payday loans in Franklin, Arkansas, let’s take a step back and talk about what a payday loan actually is.
A payday loan is a short-term, high-interest loan. Borrowers typically take out payday loans to cover a financial emergency and then repay the loan with their next paycheck. Payday loans are notorious for their high interest rates and fees, and they can trap borrowers in a cycle of debt that’s hard to break.
Why are payday loans prohibited in Arkansas?
In 2008, Arkansas voters approved a ballot initiative to cap payday loan interest rates at 17%. However, payday lenders found a loophole in the law and began offering payday loans with interest rates as high as 300% or more. In response, the Arkansas Supreme Court ruled that these high-interest payday loans were illegal under the state’s usury laws.
Since then, payday lenders have not been able to operate legally in Arkansas. Any lender caught offering payday loans in the state can face steep fines and legal action.
What are the alternatives to payday loans in Franklin, Arkansas?
If you’re facing a financial emergency and you don’t have the funds to cover it, a payday loan might seem like your only option. However, there are alternatives to payday loans that can help you get the money you need without falling into a cycle of debt.
- Personal Loans: You can apply for a personal loan from a bank or credit union. These loans typically have lower interest rates than payday loans, and you can usually borrow more money as well. However, the application process can take longer, and you will need to have good credit to qualify.
- Credit Cards: If you have a credit card, you can use it to cover your financial emergency. While credit cards can come with high interest rates, they are often a better option than payday loans. Just be sure to pay off the balance as quickly as possible to avoid accruing more interest.
- Emergency Assistance Programs: Many community organizations and nonprofits offer emergency assistance programs that can provide financial help in times of need. These programs can range from food and housing assistance to financial counseling and emergency loans with low interest rates.
Facts and Statistics about Payday Loans in Franklin, Arkansas
- The average payday loan in Arkansas has an interest rate of 340%.
- Between 2009 and 2011, payday lenders in Arkansas made over $50 million in fees from borrowers.
- The majority of payday loan borrowers in Arkansas are women.
Apply Now
If you’re facing a financial emergency in Franklin, Arkansas, and you’re in need of funds, TheGuaranteedLoans can help connect you with potential lenders. We are not a direct lender, but we work with a network of trusted lenders to help borrowers get the funds they need. To get started, fill out our online application today.
Remember, payday loans are prohibited in Arkansas, but there are alternatives available to help you cover your expenses. Be sure to explore all of your options and choose the one that’s right for you.