Payday loans in Balsam, North Carolina: What You Need to Know
Payday loans are a type of short-term loan that is designed to assist borrowers to cover expenses until their next paycheck. Regardless of their convenient and fast nature, payday loans have been banned in North Carolina since 2001. This article is for residents of Balsam, North Carolina, who require assistance with managing their finances and finding alternatives to payday loans.
The Ban on Payday Loans in North Carolina
The North Carolina General Statutes 53-281 and the North Carolina Attorney General prohibit payday lenders from operating within state lines. This has been in effect since 2001 when the North Carolina General Assembly passed a law that made it illegal to charge over 36% interest on small loans.
A payday loan is a debt trap since it carries a high-interest rate and a short repayment period. Borrowers get stuck in a cycle of debt because they can’t repay the principal and fees on time. They then have to pay more interest and fees, leading to more debt. This practice has been outlawed in North Carolina, and payday lenders have had to close down their operations or transition their businesses to follow North Carolina’s lending laws.
Alternatives to Payday Loans in Balsam, North Carolina
If you live in Balsam, North Carolina, and have a sudden financial crisis, there are alternatives to payday loans. These include:
- Credit counseling services: If you are in debt and don’t know where to turn, you can access credit counseling services to help you manage your finances and develop a plan to pay down your debt.
- Personal loans: You can borrow from a traditional financial institution such as a local bank or credit union to cover your expenses. Personal loans have longer repayment periods and lower interest rates compared to payday loans.
- Credit cards: Credit cards can provide you with quick access to funds. However, you need to be careful when using credit cards since they can easily spiral into debt, which can be challenging to pay off.
- Friends and family: If you have a close network of friends and family members, you can consider borrowing from them temporarily until you get back on your feet.
Interesting Facts and Statistics about Payday Loans in Balsam, North Carolina
- North Carolina is not alone in its ban on payday loans. Other states like Georgia, Arkansas, and New York have also outlawed payday loans.
- In 2016, the Center for Responsible Lending released a report that revealed the average payday loan borrower in North Carolina took out 11 loans in a year, with an average loan amount of $363. This implies that most borrowers get trapped in a cycle of debt that takes them months or years to break free from.
- North Carolina’s ban on payday loans has saved consumers over $450 million in loan fees since its enactment.
Apply Now
At TheGuaranteedLoans, we help match borrowers in need of funds with reputable lenders across the United States. While payday loans may be illegal in North Carolina, we can still connect you with lenders who offer alternative loans like personal loans and installment loans.
To get started with your loan application, fill out our online form, and we will match you with suitable lenders based on your financial needs and profile. Remember, we are not a direct lender, but instead, we connect borrowers with lenders that provide loans that meet their needs.
Apply now and get connected with reliable lenders who offer loans that won’t leave you stuck in a cycle of debt.