Payday Loans in Scammon, Kansas: What to Know
Payday loans are legal in Kansas, including in the small town of Scammon. If you’re considering taking out a payday loan in Scammon or elsewhere in Kansas, it’s important to understand what these loans are, how they work, and what risks they can pose.
What is a payday loan?
A payday loan is a short-term, high-interest loan that is typically due on the borrower’s next payday. These loans are usually for small amounts, ranging from a few hundred dollars to a few thousand dollars.
In Kansas, payday lenders are allowed to charge up to 15% interest on loans of $100 or less. For loans between $100 and $500, the interest rate can be up to 10%. For loans over $500, the interest rate can be up to 5%. Lenders are also allowed to charge additional fees, such as origination fees and late fees.
How do payday loans work?
To take out a payday loan, you’ll need to provide the lender with proof of income and a bank account. You’ll then write a post-dated check for the loan amount plus fees, which the lender will cash on your next payday. If you can’t repay the loan on the due date, the lender may offer to roll over the loan for an additional fee.
Payday loans can be tempting because they offer fast cash with no credit check. However, they can also be very expensive and can trap borrowers in a cycle of debt.
What are the risks of payday loans?
One of the biggest risks of payday loans is their high cost. Because of their short terms and high interest rates, these loans can be very expensive. Borrowers may end up paying back much more than they originally borrowed, and they may have difficulty making their payments on time.
Another risk of payday loans is the risk of falling into a cycle of debt. Because borrowers must repay the loan plus fees on their next payday, they may not have enough money to cover their other expenses and bills. This can lead to borrowing again and again, and can put borrowers in a difficult financial situation.
Interesting Facts and Statistics about Payday Loans in Scammon, Kansas
- In 2019, there were 3,317 payday loan businesses in Kansas.
- The average payday loan in Kansas is $290.
- On average, borrowers in Kansas take out 8 payday loans per year.
- Payday lenders in Kansas made $267 million in fees and interest in 2018.
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If you’re considering a payday loan, it’s important to understand the risks and to only borrow what you can afford to repay. TheGuaranteedLoans is a connector service that can help you connect with potential lenders who may be able to offer you a payday loan. Remember, we are not a direct lender, and we cannot guarantee loan approval. Fill out our online application today to see if you qualify for a payday loan in Scammon or elsewhere in Kansas.