Payday loans are a popular way for many people to access quick cash, but they are not always the best option. If you live in Irving, New York, you might be wondering if payday loans are legal and if they are the right choice for you. Unfortunately, payday loans are prohibited in New York, meaning that you cannot take out a payday loan in Irving or anywhere else in the state.
What are payday loans?
Payday loans are loans that are meant to provide a short-term solution for when you need money quickly. Typically, they are for small amounts of money and have to be paid back within a few weeks or months. Payday loans are meant to be a quick fix, but they often come with high interest rates and fees that make them difficult to repay. In Irving, New York, payday loans are banned, and there is no way to legally take out one.
Why are payday loans banned in New York?
New York has some of the strictest lending laws in the country, which includes a ban on payday loans. The state government enacted the law to protect consumers from predatory lending practices, where lenders take advantage of people who are financially vulnerable by charging exorbitant fees and interest rates. Many low-income families and people of color are the most vulnerable to these schemes, so the government wanted to protect them.
What are the alternatives to payday loans?
If you live in Irving, New York, and need money quickly, there are other options available. You may want to consider a personal loan, credit card cash advance, or borrowing from family or friends. Personal loans are typically unsecured loans, which means you don’t have to provide collateral. They have a lower interest rate than payday loans, and you can usually borrow more money for a longer period. Credit card cash advances are also an option, but they tend to have higher interest rates than regular credit card purchases. Lastly, borrowing from family or friends can be the best option, but make sure you have a plan to pay them back on time to avoid damaging relationships.
Facts and statistics
- In 2018, the average payday loan borrower in the United States took out eight loans of $375 each and paid nearly $520 in interest fees.
- The average annual percentage rate for a payday loan in New York is 400%, while the interest cap set by state law is 25%.
- In New York, payday loans were made illegal in 2005.
- According to the Consumer Financial Protection Bureau, about 80% of payday loans are rolled over into a new loan within two weeks.
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While payday loans are not an option in Irving, New York, TheGuaranteedLoans can help connect you with a lender that offers other types of loans. We offer a free service that matches you with reputable lenders in your area that can provide you with a loan that fits your needs. Please keep in mind that we are not a direct lender, and we do not make lending decisions. Our goal is to connect you with potential lenders quickly and easily, so you can get the money you need as soon as possible. Fill out our online application form for free today.