Payday loans have become wildly popular in recent years as a means of obtaining quick access to cash in case of an emergency. Whether it’s to pay for an unexpected car repair or a medical bill, payday loans offer a temporary solution for those who are in desperate need of cash. In High Point, Missouri and throughout the state, these loans are legal and are regulated under Missouri Revised Statutes 408.500 et seq. This means that residents of High Point and all around the state of Missouri are able to take advantage of these loans without worrying about their legality.
How Payday Loans Work in High Point, Missouri
Payday loans function in much the same way in High Point, Missouri as they do in other states. A payday loan is a short-term, high-interest loan that is typically due on the borrower’s next payday. Borrowers are required to provide proof of income and a valid checking account in order to qualify.
The loan amount is typically determined by the borrower’s income level, with the average loan amount in Missouri ranging from $100 to $500. Lenders charge a fee of up to 75% of the loan amount, and the loan is due to be repaid within 14 days of the date it was issued. In some cases, borrowers may be able to extend the loan term by paying an additional fee.
The Pros and Cons of Payday Loans
Like any financial product, payday loans have both advantages and disadvantages. On the one hand, payday loans offer a quick and easy source of cash when you need it most. They don’t require collateral and can be obtained even if you have poor or no credit. This makes them an attractive option for those who can’t qualify for traditional loans.
On the other hand, payday loans are associated with high fees and interest rates that can be difficult to pay back for some borrowers. This can lead to a cycle of debt that can be hard to break. Additionally, some lenders have been known to use predatory practices, such as automatically rolling over loans, which can further trap borrowers in a cycle of debt.
Alternatives to Payday Loans
For those who are looking for alternatives to payday loans, there are a few options available. One option is to seek out a personal loan from a bank or other financial institution. Personal loans offer lower interest rates than payday loans and can be repaid over a longer period of time.
Another option is to seek out local resources, such as food banks or community organizations, that offer assistance to those in need. These organizations may be able to help with everything from food and clothing to financial assistance and emergency loans.
Interesting Facts about Payday Loans in High Point, Missouri
- As of 2021, there are over 1,000 payday lenders operating in the state of Missouri, with many of these lenders operating in High Point and the surrounding areas.
- The average APR for payday loans in Missouri is 462%, which is higher than in many other states.
- A study by the Consumer Financial Protection Bureau found that over 80% of payday loans in Missouri are taken out within two weeks of paying off a previous payday loan.
- The Missouri Attorney General’s office receives hundreds of complaints each year from consumers who have been victimized by payday lenders.
Apply Now
If you’re in need of a payday loan in High Point, Missouri, TheGuaranteedLoans can help. We are a connector service that works with a network of lenders to help you find the loan that’s right for you. Simply fill out our online application and we’ll connect you with potential lenders in your area. Remember: we’re not a direct lender, but we’ll do our best to help you find the right loan for your needs.
Conclusion
Payday loans can be a valuable source of assistance for those who need quick cash in case of an emergency. However, they come with high interest rates and fees, and should be used only as a last resort. If you’re considering taking out a payday loan in High Point, Missouri or elsewhere, be sure to educate yourself about the risks involved and to explore all of your options before making a decision.