Payday Loans in Everetts, North Carolina
Payday loans, also known as cash advances, are a type of short-term loan that provides quick access to cash. Generally speaking, these types of loans come with high interest rates and are meant to be paid back on the borrower’s next payday. However, in Everetts, North Carolina, payday loans are prohibited by law.
As of 2001, payday lending has been illegal in North Carolina under the North Carolina General Statutes § 53-281 and North Carolina General Statutes § 53-173, which caps small loan interest rates at 36% APR.
Why Are Payday Loans Prohibited in Everetts, North Carolina?
Payday loans are known to trap borrowers in a cycle of debt. Due to their high interest rates and fees, many people who take out payday loans struggle to pay them back on time. This can lead to borrowers taking out additional loans to cover their previous debts, further piling on additional debt and financial strain.
North Carolina lawmakers recognize the issues that come with these types of loans and the potential for exploitation. In banning payday loans, they took a stand to protect consumers from predatory lending practices and to help prevent them from falling into financial ruin.
Alternatives to Payday Loans in Everetts, North Carolina
While payday loans are prohibited, there are other options available for those in need of short-term cash in Everetts, North Carolina. One popular alternative is a personal installment loan. These loans are offered by many banks and credit unions and offer longer repayment terms and lower interest rates compared to payday loans.
Another option is to look into community resources such as local non-profit organizations that provide financial assistance to those in need. Some churches and community centers may also have programs that offer small loans or other types of financial help.
Interesting Facts and Statistics about Payday Loans in Everetts, North Carolina
- The average payday loan APR in North Carolina prior to the ban was 443%.
- In 2017, the Center for Responsible Lending reported that payday lenders had drained over $450 million in fees from NC families over the past 12 years.
- North Carolina was one of the first states in the country to take action against predatory payday lending practices, and as of 2021, over a dozen other states have followed suit.
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If you need financial assistance in Everetts, North Carolina, TheGuaranteedLoans can help connect you with potential lenders through our online application process. While we are not a direct lender, we work hard to facilitate connections between borrowers and trusted lenders who may be able to provide financial assistance.
Fill out our online application now to see if you qualify for a loan and to be connected with potential lenders. Our application process is quick and easy, and we take pride in helping those in need get the financial assistance they need to get back on their feet. Apply today!