What You Need to Know About Payday Loans in London, Arkansas
For those who find themselves in need of financial help, payday loans can seem like a quick and easy solution. However, in states like Arkansas, these loans are prohibited, leaving many wondering what options they have.
Payday loans are short-term loans typically given to borrowers with a high interest rate and a repayment period of a few weeks. Despite their high interest rates, they are often popular among borrowers who have difficulty securing traditional loans due to poor credit scores, lack of collateral, or other factors.
The Prohibition of Payday Loans in Arkansas
While payday loans may seem like a helpful option for those who need money fast, they come with their fair share of disadvantages. In Arkansas, these loans are prohibited under Arkansas Statute 23-52-101 et seq and Ark. Const. Amend. 89.
The state’s constitutional interest rate cap is 17%, which makes it impossible for payday lenders to operate within the legal boundaries set forth.
However, just because payday lenders are not able to legally operate in Arkansas does not mean that individuals in need of quick cash are completely out of luck. There are other financial options available that can help in times of need.
Alternatives to Payday Loans in Arkansas
For those living in London, Arkansas, here are a few alternatives to payday loans that you may want to consider:
- Personal loans: A personal loan is a type of unsecured loan that can be used for various purposes, including emergency expenses. While it may be more difficult to obtain a personal loan with poor credit, it is certainly worth exploring as an option.
- Assistance programs: There are various assistance programs available for those in need, such as the Low Income Home Energy Assistance Program (LIHEAP) and the Supplemental Nutrition Assistance Program (SNAP).
- Credit counseling: Credit counseling agencies can help you manage your debt and give you advice on how to budget and save money. They may also be able to connect you with loan programs that fit your budget and needs.
Interesting Facts and Statistics About Payday Loans in Arkansas
- While Arkansas prohibits payday loans, other states have limited the number of loans that individuals can take out per year.
- The average payday loan borrower takes out eight loans per year, with an annual interest rate of 391%.
- Payday loan borrowers are often low-income families who are already struggling to make ends meet.
Apply Now
If you are in need of financial assistance in London, Arkansas, TheGuaranteedLoans may be able to help. We work with a network of lenders to help borrowers find the loans that they need.
It’s important to note that TheGuaranteedLoans is not a direct lender, but rather, a connector service. We facilitate connections between borrowers and lenders, but we do not make decisions regarding loan approvals or denials. To apply for a loan, simply fill out our online application and we will work to match you with a potential lender.
Don’t let financial difficulties set you back. Explore your options and take the necessary steps to get back on your feet.