In Ellerslie, Georgia, payday loans are prohibited by state law, and for a good reason. Payday loans are a type of short-term loan where borrowers are expected to payback the loan, and an additional fee, by the next payday. This may sound reasonable, but the high-interest rates can quickly trap borrowers in a cycle of debt.
The Prohibition of Payday Loans in Georgia
In 2004, the state of Georgia prohibited payday lending. Georgia policymakers noticed that payday lending was trapping many of its residents in a cycle of debt. According to a report from Pew Charitable Trusts, the average payday loan borrower spent five months per year in debt and paid an average of $520 in fees. Georgia’s prohibition effectively shut down all storefront payday lenders.
The prohibition, however, did not stop all payday lending. Online payday lenders and other lenders who skirted the law persisted. But Georgia policymakers were relentless, and they created tougher legislation that made it difficult or impossible for lenders to conduct predatory lending practices in the state.
How to Spot Predatory Lending Practices
- Extremely high-interest rates, usually above 300% APR
- Short repayment terms, usually two weeks to a month
- Loan flipping or loan churning, a process where lenders encourage customers to refinance their loans over and over again, adding more interest and more fees
- Unfair debt collection practices, such as threats of wage garnishment and lawsuits
Alternatives to Payday Loans
If you need cash fast, a payday loan may seem like the only option. However, there are alternatives that are less expensive and less risky. These alternatives include:
- Credit union loans
- Personal loans
- Credit card cash advances
- Local loans from friends or family members
Interesting Facts and Statistics about Payday Loans in Ellerslie, Georgia
- There are no payday lenders in Ellerslie, Georgia, due to the state’s prohibition on payday lending.
- From 2004 to 2010, Georgia residents saved about $1.4 billion in payday and car title loan fees due to the prohibition.
- The average payday loan borrower in the United States takes out eight loans per year, spending almost $500 in fees alone.
Apply Now with TheGuaranteedLoans
While payday loans are illegal in Georgia, there may be other borrowing options available that are safer and more affordable. If you are in need of short-term cash, apply now with TheGuaranteedLoans. As a connector service, we can help you find a reputable lender who may be able to provide you with the funds you need. Please note that we are not a direct lender and that your loan agreement will be with the lender who approves your application.
Don’t let predatory lending practices trap you in debt. Apply now with TheGuaranteedLoans and find a safer and more affordable borrowing option.