Understanding Payday Loans: What You Need to Know in Hurdle Mills, North Carolina
Payday loans are an easy and fast way to get cash when you’re short on funds. However, in Hurdle Mills and throughout North Carolina, they are illegal. While they can be tempting, avoiding payday loans altogether in Hurdle Mills is the best decision you can make to protect your finances.
What are Payday Loans?
Payday loans, also known as cash advances, are short-term loans that are meant to tide you over until your next paycheck arrives. They usually have high interest rates and fees and must be repaid quickly, often within two weeks.
The amount of a payday loan is typically small, ranging from $100 to $500, and borrowers usually write a post-dated check or provide their bank account information to repay the loan. If the borrower can’t repay the loan on time, they may face additional fees and high interest rates, which can make the loan much more expensive than anticipated.
Why are Payday Loans illegal in North Carolina?
Payday loans are illegal in North Carolina because they carry high fees and interest rates that can trap borrowers in a cycle of debt. The state’s Attorney General’s office has pursued legal action against payday lenders, and in 2006, the North Carolina General Assembly ruled that payday lending violates state usury laws.
Usury laws are meant to protect consumers from predatory lending practices, and North Carolina is one of many states that has decided to outlaw or restrict payday lending.
Alternatives to Payday Loans in Hurdle Mills
While payday loans are illegal in Hurdle Mills and throughout North Carolina, there are still options for those who need short-term cash. Here are some alternatives:
- Credit cards: While not ideal, credit cards with low interest rates can be a better option than payday loans.
- Borrow from family or friends: Asking a loved one for help might be the solution you need.
- Local credit unions and banks: Some credit unions and banks offer small personal loans with lower interest rates than payday loans.
Before considering any alternative to payday loans, it’s important to exhaust all options and carefully evaluate the risks and benefits.
Interesting Facts and Statistics About Payday Loans in Hurdle Mills, North Carolina
- Payday loans have been illegal in North Carolina since 2006.
- As of 2018, there were no licensed payday lending locations in the state.
- According to data from the Consumer Financial Protection Bureau (CFPB), the average payday loan in North Carolina carries an annual percentage rate (APR) of 391 percent.
- In a study conducted by the Center for Responsible Lending, North Carolina borrowers paid an estimated $457 million in payday loan fees between 2011 and 2016.
- The North Carolina legislature has rejected attempts to legalize payday lending in the state in recent years.
Apply Now
If you’re in need of short-term cash in Hurdle Mills, North Carolina, TheGuaranteedLoans can connect you with lenders who offer alternatives to payday loans. We’re a connector service, not a direct lender, and we make it easy to get started. Simply fill out our online application and our network of lenders will get to work finding the right loan for you. Apply now!
Note: TheGuaranteedLoans is not a lender and doesn’t charge any fees to connect borrowers with potential lenders. Borrowers must meet certain eligibility requirements and lenders will determine the terms and rates of any loans issued. Please review any loan agreement carefully and keep in mind that borrowing money carries risks, including the possibility of default and adverse effects on credit scores.