Payday Loans in Guilderland, New York
Payday loans, which are short-term loans meant to cover expenses between paychecks, are prohibited in many states, including New York. In 2016, Gov. Andrew Cuomo signed a bill that amended existing laws and made payday lending illegal for lenders in the state of New York. While payday loans may be an option for some consumers to cover emergency expenses, the New York law specifically states that its purpose is to protect consumers from the high costs, fees and possible debt traps associated with payday loans.
What are payday loans?
Payday loans are short-term, high-cost loans that are not intended to be used as long-term financial solutions. The loans require borrowers to repay the loan on their next payday, usually within two weeks, and often include very high fees and interest rates. Because of this high cost, lenders in New York are not allowed to make payday loans.
Options for Payday Loan borrowers
For borrowers in Guilderland, New York who are looking for an alternative to payday loans, there are several options available. Consumers can consider taking out a personal loan from a bank or credit union, or they can consider borrowing from family or friends. Since these options typically don’t involve high interest rates or other associated fees, they may be a better option for some consumers.
Credit Card Cash Advances
In some cases, borrowers may be able to use a credit card to get access to cash. While this option may have a lower interest rate than a payday loan, borrowers should be aware that credit card cash advances typically come with a fee. Additionally, credit card cash advances have to be repaid in full, like a regular purchase, which means the interest rate may be different from that of a payday loan.
Payday Loan Alternatives
There are a number of alternatives to payday loans, including installment loans, car title loans, and pawnshops. Each of these options has its own set of fees and interest rates, as well as different repayment terms. Some of these alternatives can provide short-term relief for those in need, but borrowers should exercise caution and understand the terms of the loan before taking out any of these types of loans.
Credit Counseling or Debt Consolidation
For borrowers in Guilderland, New York who are overwhelmed with debt, credit counseling or debt consolidation may be an option. Credit counselors can provide borrowers with advice on how to better manage their debt and can offer advice on how to find alternative ways to pay down their debt. Debt consolidation can help borrowers combine their existing debts into one loan with a lower interest rate, making it easier to pay down their debts.
Apply Now
If you’re looking for more information on loan options in Guilderland, New York, TheGuaranteedLoans can help. We are not a lender, but we can connect you with lenders who can provide you with more information on all your loan options. Fill out the online application and we’ll get you connected with a lender today.
FAQs
Q: Are there any specific laws about payday loans in New York?
A: Yes, payday loans are prohibited in the state of New York. In 2016, Gov. Andrew Cuomo signed a bill that amended existing laws and made payday lending illegal for lenders in the state. This law was enacted to protect consumers from the high costs and fees associated with payday loans.
Q: What are some alternatives to payday loans?
A: Some alternatives to payday loans include personal loans, credit card cash advances, installment loans, car title loans, pawnshops, and credit counseling. Each of these options has its own set of fees, interest rates, and repayment terms. Borrowers should carefully research each option before deciding which option is right for them.
Q: Can TheGuaranteedLoans help me?
A: Yes, TheGuaranteedLoans can help. We are not a lender, but we can connect you with lenders who can provide you with more information on all your loan options. Fill out the online application and we’ll get you connected with a lender today.