Payday loans have been a hotly debated topic for years now and for good reason. As an emergency financial aid, they are appealing to people who need quick cash without much effort. However, payday loans often come with incredibly high-interest rates and fees, trapping borrowers in a cycle of debt and stress.
The Payday Loan Controversy in Bluffton, Georgia
In Bluffton, Georgia, payday loans have been prohibited by state law. This means that it is illegal for lenders to offer payday loans to borrowers within Bluffton’s borders, something that is also true for the rest of Georgia. While this might seem like good news for Georgia residents who are trying to avoid the predatory payday loan cycle, it can be tempting to source loans from predatory lenders operating online.
The state of Georgia, along with a number of other states, has enacted stiff regulations against payday loan lenders, altogether wiping out organized payday lending in the state. This move came after years of multiple investigations and legal challenges against the payday lending industry.
Looking at the Numbers
In 2004, payday lending was legal in Georgia, and over 2.4 million payday loans were taken out in that year alone. Fast-forward 12 years later, and online lenders working around the state law were still collecting triple-digit annual interest rates on payday loans from Georgia residents. That same year, over $81,000,000 of payday interest and fees left Georgia consumers and went towards lining the pockets of out-of-state lenders. It’s clear that payday lending was not an industry that was helping the people of Georgia, yet many states are still struggling with the issue even today.
The average borrower over the years paid about $600 in interest for a typical $300 loan. Unlike a car or home loan, payday loans are issued without collateral, making them some of the most expensive type of loans that you can get. Despite this, many people still take out these loans, and it can lead to further debt problems. It is important to note that many payday lending issues occur outside of Georgia, online, or via telephone lending.
Alternatives to Payday Loans in Bluffton, Georgia
If you live in Bluffton, Georgia, and you’re struggling to make ends meet, there are several alternatives you might consider that won’t leave you worse off than when you started. Here are some of the viable options:
Credit Unions
Credit Unions provide short-term loans with lower interest rates and fees than payday lenders, and they are tailored to suit the needs of their members. If you are a member of a credit union in Bluffton, Georgia, visit them to inquire about their short-term loan program.
GeorgiaMBA
The Georgia Department of Banking and Finance runs the Georgia Mortgage Brokers Association (MBA), which is a non-profit organization that offers installment loans to borrowers who can demonstrate the ability to repay the loan within its terms. If you need a loan and live in Bluffton, Georgia, consider applying for an installment loan through the Georgia MBA.
Other Alternatives
You may also look into negotiating your bills, selling unwanted items, or even getting a part-time job instead of having to resort to taking out a payday loan or the like. Many people overlook these options because they assume that they are unlikely to work, but sometimes, these options can provide much-needed relief.
Apply Now
If you are still looking for loans online in Bluffton, Georgia, understand that TheGuaranteedLoans only serves as a connection service and not a direct lender. We work with a network of lenders who are willing to offer financial aid to borrowers in need of quick cash. If you are in need of a loan and are struggling to find one, fill out our online application today, and we’ll get you connected to a lender who might be able to help you.