Are you in need of emergency funds in Mercer, Missouri? If so, you may be considering a payday loan. In Missouri, payday loans are legal, but it is important to understand the risks and benefits before taking out a loan. Here at TheGuaranteedLoans, we aim to provide you with the information you need to make an informed decision.
What is a payday loan?
A payday loan is a type of short-term loan that is typically repaid in full on the borrower’s next payday. These loans are often used by individuals who are experiencing financial emergencies or who have poor credit and cannot access other forms of credit. Payday loans typically have high interest rates, and borrowers may be required to pay additional fees and charges.
How do payday loans work in Mercer, Missouri?
In Mercer, Missouri, payday loans are legal and regulated by state law. According to Missouri law, borrowers can take out a payday loan for up to $500, and lenders can charge up to 75% interest on the loan. Additionally, lenders can charge additional fees and charges, including a finance charge of 10% of the loan amount. The loan term must be at least 14 days, and borrowers can renew the loan up to six times.
What are the risks of payday loans?
While payday loans can provide quick access to cash, they also come with significant risks. The high interest rates and fees associated with payday loans can trap borrowers in a cycle of debt, making it difficult to repay the loan and leading to additional fees and charges. Additionally, if a borrower defaults on a payday loan, it can damage their credit score and result in legal action from the lender.
What are the benefits of payday loans?
Despite the risks, there are some benefits to payday loans. For one, they can provide quick access to emergency funds for individuals who have no other options. Additionally, payday loans can be easier to obtain than other forms of credit, as lenders typically do not require a credit check or collateral.
Apply now
If you have decided that a payday loan is the right option for you, we can help. At TheGuaranteedLoans, we are a connector service that can help you find a lender that meets your needs. Our online application is easy to use and takes just minutes to complete. Keep in mind, however, that we are not a direct lender and cannot guarantee that you will be approved for a loan.
Interesting facts and statistics about payday loans in Mercer, Missouri
- According to a report from the State of Missouri Division of Finance, there were over 1.3 million payday loans made in Missouri in 2019.
- The same report found that borrowers paid over $176 million in fees and charges on payday loans in 2019.
- In Mercer specifically, there are several payday lenders operating in the area, including Advance America and Check Into Cash.
Conclusion
Payday loans can be a useful tool for individuals in need of emergency funds, but they also come with significant risks. It is important to understand the terms and fees associated with a payday loan before taking one out, and to consider alternatives if possible. At TheGuaranteedLoans, we are here to help connect you with a lender that meets your needs and offer guidance throughout the process.