Understanding Payday Loans in Philmont, New York
Payday loans are a form of short-term loan that typically comes with high-interest rates and fees. They are designed to provide individuals with quick access to small amounts of cash when they need it the most. Typically, borrowers who take out payday loans need to pay them back on their next payday.
Prohibition of Payday Loans in New York
It is important to note that in New York, payday loans are prohibited by law. New York’s usury laws generally prohibit charging more than 25% APR for loans of $25,000 or less. Since payday loans typically come with interest rates that far exceed this limit, they are illegal in the state of New York.
The reason for the prohibition of payday loans in New York is because they can often trap borrowers in a cycle of debt. In many cases, borrowers who take out payday loans are unable to pay them back on time, which can lead to additional fees and charges. This can cause borrowers to take out more loans to cover their existing loan, creating a cycle of debt that can be difficult to break.
Why are Payday Loans Popular Despite Being Illegal?
Despite being illegal in New York, payday loans are still very popular throughout the United States. One of the biggest reasons for their popularity is that they are relatively easy to obtain. Unlike traditional loans, payday loans do not require a credit check or collateral.
Because of this, payday loans are often seen as the best option for people who have poor credit or who are unable to obtain traditional loans.
Alternatives to Payday Loans
If you are in need of cash and live in Philmont, New York, it is important to explore other options besides payday loans. Some potential alternatives to payday loans include:
- Personal loans from banks or credit unions
- Credit card cash advances
- Borrowing from friends or family
- Employer cash advances
While these options may not be as easy to obtain as payday loans, they offer lower interest rates and more favorable terms. Plus, they won’t put you at risk of falling into a cycle of debt that can be difficult to break.
Interesting Facts and Statistics about Payday Loans in Philmont, New York
- New York State’s Department of Financial Services fined two payday loan companies in 2016 for violating state lending laws.
- According to Pew Charitable Trusts, the average payday loan borrower in the United States takes out eight loans per year, spending an average of $520 on interest alone.
- In 2017, the Consumer Financial Protection Bureau (CFPB) finalized rules that would have required payday lenders to verify borrowers’ ability to repay loans before lending them money. However, in 2019, the CFPB reversed this requirement.
Apply Now
If you need access to cash in Philmont, New York, TheGuaranteedLoans.com is here to help. As a connector service, we work with a network of potential lenders to help connect borrowers with the best loan options available to them.
Simply fill out our online application, and we will work to match you with a lender that can provide you with the funds you need. Remember, we are not a direct lender – we simply facilitate the connection between borrowers and potential lenders.
Don’t let the prohibition of payday loans in New York leave you feeling helpless. Apply for a loan through TheGuaranteedLoans.com and get the cash you need today.