In Atlantic, North Carolina, payday loans are illegal. As such, it is important to note that any lender offering payday loans in Atlantic, North Carolina is doing so illegally. However, that doesn’t mean that residents of Atlantic, North Carolina are without options when it comes to short-term loans.
Understanding Payday Loans
Payday loans are typically small-dollar loans with a short repayment term of a few weeks, designed to bridge the gap between paychecks. The loans are usually for amounts between $100 and $500, with an average annual percentage rate of over 300 percent. In most cases, borrowers must provide proof of income and a checking account to qualify for a payday loan.
While payday loans may seem like a quick and easy solution to a financial emergency, they can quickly become a debt trap for borrowers who are unable to repay the loan on time. Many borrowers end up renewing their loans multiple times, paying high fees each time, leading to a cycle of debt.
Why Are Payday Loans Illegal in North Carolina?
In 2001, North Carolina became the first state to prohibit payday lending, citing the high fees and interest rates associated with the loans. The state’s usury laws cap interest rates at 36 percent, making it impossible for payday lenders to operate profitably in the state. While some lenders have attempted to operate under the guise of other types of lending, such as car title lending, these loans are also illegal in North Carolina.
Legal Alternatives to Payday Loans
While payday loans are illegal in Atlantic, North Carolina, there are still legal options available to residents in need of a short-term loan. Here are some alternatives to payday loans:
Personal Installment Loans:
Personal installment loans are unsecured loans that are repaid in equal monthly installments over a set period of time. These loans often have a lower interest rate than payday loans and can be a more affordable option for borrowers who need longer repayment terms.
Credit Union Loans:
Credit unions often offer low-interest loans to members, including short-term loans with lower fees than payday loans.
Cash Advances:
Some credit cards offer cash advances with lower interest rates and fees than payday loans. However, it is important to note that cash advances often come with higher interest rates than regular purchases and should be used sparingly.
Emergency Assistance Programs:
There are a variety of state and local emergency assistance programs that may be able to help individuals in need of financial assistance. These programs may include emergency rental assistance, utility bill assistance, and food assistance programs.
Interesting Facts or Statistics About Payday Loans in Atlantic, North Carolina
- In 2001, North Carolina became the first state to prohibit payday lending.
- Payday lending is illegal in North Carolina due to the state’s usury laws, which cap interest rates at 36 percent.
- Some payday lenders have attempted to operate under the guise of other types of lending, such as car title lending, but these loans are also illegal in North Carolina.
- North Carolina ranks eighth in the nation in terms of the percentage of households that are unbanked.
- According to a 2020 survey, 79 percent of North Carolina voters support the state’s ban on payday lending.
Apply Now
While TheGuaranteedLoans does not offer payday loans in Atlantic, North Carolina or any other state where they are illegal, we are a connector service that can help you find a lender that may be able to meet your short-term loan needs. Simply fill out our online application and we’ll connect you with potential lenders who can provide you with the funds you need.
It’s important to remember that short-term loans should be used sparingly and only in emergencies, and that borrowing money always comes with costs. Make sure you fully understand the terms and conditions of any loan before accepting it and never borrow more than you can afford to repay.