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Payday Loans in Calhoun, Illinois: What You Need to Know
Payday loans have become increasingly popular in Illinois, especially in Calhoun County – a county with a population of just over 5,000 people. Payday loans are short-term, high-interest loans, typically due on the borrower’s next payday. While they can be a quick source of cash for consumers in need, they can also be quite risky due to their high fees and interest rates.
Are Payday Loans Legal in Illinois?
Yes, payday loans are legal in Illinois. Illinois has some of the strictest regulations regarding payday lending in the country, but consumers still need to be careful when considering taking out a payday loan.
How Do Payday Loans Work?
Payday loans are meant to be short-term loans that provide borrowers with emergency cash when they need it most. To obtain a payday loan, borrowers typically have to provide proof of income (such as a pay stub), a valid ID, and a checking account. The application process is typically quick and straightforward, and borrowers can often get their money within a few hours of applying.
Payday loans typically have high fees and interest rates, sometimes as much as 400 percent or more. This means that borrowers who can’t repay the loan on time could end up owing more money in fees and interest than they originally borrowed.
What Are the Risks of Payday Loans?
The biggest risk of payday loans is that they can become a never-ending cycle of debt for borrowers. Many borrowers take out payday loans to cover unexpected expenses, then find themselves unable to repay the loan on time. This can lead to taking out another loan to cover the first loan, and so on, creating a cycle of debt that can be difficult to break.
Another risk of payday loans is that they can be extremely expensive. The high fees and interest rates associated with payday loans can quickly add up, making it difficult for borrowers to ever repay the loan in full.
What Are the Alternatives to Payday Loans?
Fortunately, there are alternatives to payday loans for consumers who need emergency cash. Some of the best alternatives include:
- Credit card cash advance: While a credit card cash advance also comes with high fees and interest rates, it can be a better alternative to payday loans because the interest rates are usually lower.
- Personal loans: A personal loan from a bank or credit union may offer a lower interest rate than a payday loan.
- Borrowing from friends or family: While it can be difficult to ask friends and family for money, it’s often a better alternative to taking out a payday loan.
Interesting Facts and Statistics about Payday Loans in Calhoun County, Illinois
- According to a report by the Illinois Department of Financial & Professional Regulation, there were 13 payday lending stores in Calhoun County as of 2019.
- The average payday loan amount in Illinois is $375.
- More than 75% of payday loan borrowers in Illinois have to take out more than one loan per year.
Apply Now
If you’re considering a payday loan in Calhoun, Illinois, remember that TheGuaranteedLoans is here to help. We are a connection service that will match you with potential lenders. Simply fill out our online application, and we’ll do the rest. Remember to only borrow what you can afford to repay, and always read the terms and conditions of any loan before signing.