When you’re facing a financial emergency, it can be tempting to turn to payday loans. But if you’re in Viola, Arkansas, you should know that payday loans are prohibited in the state. In this article, we’ll take a closer look at what payday loans are, why they’re prohibited in Arkansas, and what alternatives you have available if you’re in need of quick cash.
What are payday loans?
Payday loans are short-term loans meant to tide you over until your next paycheck. They’re typically for small amounts, usually a few hundred dollars or less, and they’re designed to be repaid quickly, often within two weeks.
The catch is that payday loans come with extremely high interest rates and fees. In fact, according to the Consumer Financial Protection Bureau, the average payday loan has an APR of nearly 400%. For someone already living paycheck to paycheck, it can be nearly impossible to pay back the loan and still cover their other expenses.
Why are payday loans prohibited in Arkansas?
In 2008, the Arkansas Supreme Court ruled that the state’s usury laws, which cap interest rates at 17%, apply to payday loans. As a result, payday lenders were forced to shut down their operations in the state.
Despite this ruling, many payday lenders have continued to target Arkansas residents by offering online loans. However, these lenders are operating in violation of Arkansas law, and they can’t take legal action to collect their debts.
What are the alternatives to payday loans?
If you’re in need of quick cash, there are alternatives to payday loans. Here are a few options to consider:
Credit unions
Many credit unions offer small-dollar loans with lower interest rates and more flexible repayment terms than payday loans. Some credit unions also offer financial counseling and other services to help members improve their financial situation.
Personal loans
You may be able to qualify for a personal loan from a bank or online lender. These loans typically have lower interest rates than payday loans, but they may require a higher credit score and a longer repayment period.
Credit counseling
A credit counseling agency can work with you to create a budget and a debt repayment plan. They may also be able to negotiate with your creditors to lower your interest rates and fees.
Interesting facts and statistics about payday loans in Viola, Arkansas
- Payday loan lenders have been prohibited from operating in Arkansas since 2008
- According to the Arkansas Attorney General, many payday lenders are still attempting to offer loans to Arkansas residents through online channels
- The majority of payday loan borrowers are low-income earners who often have difficulty repaying their loans on time
Apply Now
At TheGuaranteedLoans, we understand that financial emergencies can happen to anyone. That’s why we’ve created a service to help connect you with potential lenders who may be able to offer you a loan. Keep in mind that we are not a direct lender and do not make credit decisions. Instead, we work with a network of lenders to help our clients find the right loan for their needs.
If you’re in Viola, Arkansas, and need a loan, simply fill out our online application to get started. We’ll take your information and match you with lenders who may be willing to lend to you. The process is quick and easy, and you could have the cash you need in your account within a matter of days.
In conclusion
While payday loans may be tempting in a financial emergency, they’re typically a bad idea due to their high interest rates and fees. If you’re in Viola, Arkansas, remember that payday loans are prohibited in the state. Instead, consider alternatives like credit unions, personal loans, and credit counseling. And if you need help finding a loan, be sure to check out TheGuaranteedLoans for assistance.