Understanding Payday Loans in Auriesville, New York
If you reside in Auriesville, New York, and you’re in need of quick cash, you might be tempted to turn to a payday loan. After all, payday loans are short-term loans designed to help people deal with unforeseen expenses or emergencies like car repairs, medical bills, or utility expenses.
However, it’s important to note that payday loans are prohibited in New York state. In 2006, the New York State Assembly prohibited payday loans via the Banking Department’s Small Loan Lending Program.
Note: While this article discusses payday loans, we would like to clarify that TheGuaranteedLoans is a connector service, not a direct lender. We connect potential borrowers with our network of lenders to best serve their needs.
Understanding Payday Loans
Payday loans are small, short-term loans with high-interest rates designed to provide quick cash. The borrower must write a post-dated check to the lender for the amount of the loan, plus interest and fees. The lender will then advance the borrower the amount specified in the check, minus their fees.
The issue with payday loans is that the annual percentage rate (APR) can be incredibly high. In fact, APRs for payday loans can reach upwards of 400%. For comparison, credit card APRs typically range from 12% to 30% depending on creditworthiness.
Moreover, many payday lenders require borrowers to pay back the loan, interest, and fees in a lump sum within a few weeks. This can make it challenging for millions of Americans living paycheck to paycheck.
The Reality of Payday Loans
Despite the ease of access to quick cash, payday loans often put borrowers in a debt trap. According to The Pew Charitable Trusts, around 80% of payday loans aren’t paid on time, leading to rollovers and renewals of the initial loans.
What this means is that many borrowers take out additional loans to cover the previous one, putting them in a cycle of debt they can’t escape. In the end, they can end up paying hundreds or thousands of dollars more in interest and fees than the initial loan amount.
Payday Loans in Auriesville, New York
New York State’s Banking Department’s Small Loan Lending Program prohibits payday loans, hence making it illegal for cash advance companies to offer these loans. This law applies to both physical and online lenders.
Instead, New York has three primary alternatives to payday loans: credit unions, community banks, and low-interest-rate financial assistance programs. These alternatives often have better rates and repayment terms, making them a better solution for those who require fast cash.
Interesting Facts about Payday Loans
– In New York, only 37% of payday loan borrowers manage to pay the loan within the given two-week period.
– California, Texas, and Ohio have the largest number of payday lending storefronts.
– The average payday loan borrower takes out eight loans per year and spends more than 90 days in debt.
– Payday loans result in more than $9 billion in loan fees per year, according to a report by the Center for Responsible Lending (CRL).
Apply Now
If you’re in need of quick cash and you live in New York, TheGuaranteedLoans can help you find a lender that meets your needs. While we do not offer payday loans, we connect borrowers with lenders who offer a range of loan products, including personal loans, title loans, and more.
Fill out our online application today to get started. Remember, we are a connector service, and we aren’t a direct lender. As such, we’ll match your application with the lender that best fits your needs.
Conclusion
Payday loans are illegal in New York State, including Auriesville. Though there might be a limited number of lenders offering payday loans, it’s important to avoid them and consider alternative options, as they can end up costing one significantly more in the long run. If you need cash fast, consider seeking out consumer credit counseling or financial assistance organizations, or explore some of the loan products available on TheGuaranteedLoans website.