Renting Money: Understanding Payday Loans in Rentz, Georgia
Getting through financial hardships is never an easy feat, and sometimes, it feels like everything is crashing down. In situations where there’s nowhere else to turn for a quick buck to cover your bills and other expenses, payday loans seem like a saving grace.
However, if you’re based in Rentz, GA, and looking to get a payday loan, you need to know that it’s strictly prohibited. Here’s what you need to know about payday loans in Rentz, as well as a few alternative solutions to help you tide over your financial struggles without breaking the law.
Understanding Payday Loans
A payday loan is a type of short-term credit that lenders give out to people who need to quickly borrow money to make ends meet. These loans are typically secured against the loans of the borrower's next paycheck and come with high interest rates and fees.
Payday loans don’t require a credit score check, and the application process only takes a short amount of time compared to conventional loans. These loans can also be accessed online or through payday lenders who typically operate out of storefronts.
Why are Payday Loans Prohibited in Georgia?
Georgia is one of 18 states in the US that has taken legislative action against payday lending in the form of usury laws under the Georgia Industrial Loan Act.
The practice of payday lending can trap borrowers in a cycle of debt since borrowers might not be able to make their repayment obligation once due, and as a result, they end up taking out additional payday loans.
The debt cycle then continues, with borrowers’ deferred repayment continually rolled over with additional loans, deeper into debt. To curb abusive and predatory lending practices, Georgia lawmakers decided to prohibit payday loans under the Georgia Industrial Loan Act.
Alternative Options to Payday Loans
If you live in Rentz, GA, and are looking to grab a quick financial solution, you might need to check alternative funding options. A few options include:
- Credit Cards: If you have a good credit score, using your credit card’s cash advance option might be a good alternative instead of a payday loan. While it still carries original fees and interest rates, credit card cash advances offer more favorable conditions compared to payday loans.
- Personal Installment Loans: An installment loan is a type of loan where you get the amount you need upfront and pay it back gradually over a few months. They typically come with lower interest rates than payday loans and offer more extended repayment plans.
- Friends and Family: It may be uncomfortable, but asking friends and family for help during tough times could be a good option. This option doesn’t come with additional interest rates or fees, and the repayment terms are typically flexible.
Interesting Facts and Statistics about Payday Loans in Georgia
- Georgia settled with one payday lender in a case opened in 2013 and won $23 million, where the lender charged borrowers over 300% interest.
- The number of payday lenders in Georgia declined in recent years, from an estimated 1,000 in late 2013 to 350 in late 2017.
- In the state of Georgia, the applicable usury limit is 16%, and the Attorney General’s Office flatly asserts that payday lending is illegal in the state and violates state law.
Apply Now
If you live in Rentz, GA, and need an alternative funding option to a payday loan, consider applying online at TheGuaranteedLoans. As a connector service, we connect borrowers with lenders who offer the best loan rates and offer favorable repayment terms. Apply today to explore the options available to you during your time of financial need.