Payday Loans in Skyland, North Carolina: What You Need to Know
If you’re struggling with financial difficulties and facing unexpected expenses, you may be considering taking out a payday loan. However, if you live in Skyland, North Carolina, know that payday loans are prohibited in your state. Read on to learn more about the payday loan industry, the legal status of payday loans in North Carolina, and alternative options for emergency cash.
What are Payday Loans?
A payday loan is a small, short-term loan that is typically due on the borrower’s next payday. These loans are designed to tide over people until they receive their next paycheck or income stream. Generally, payday loans have high-interest rates and fees to compensate for the risk taken by the lender. Some payday loan terms can be as short as two weeks or until the borrower’s next payday.
The Payday Loan Industry
The payday loan industry is a controversial one, with consumer advocates often raising concerns about predatory lending practices. Critics argue that payday lenders exploit vulnerable populations, including low-income individuals and those with poor credit, by luring them into high-cost debt traps.
While payday loans are allowed in some states, North Carolina has taken a firm stance against them by prohibiting lenders from operating in the state. This is because the state’s elected officials and consumer protection advocates determined that payday loans are harmful to consumers.
Payday Loans in North Carolina
In 2001, North Carolina became the first state to take drastic action against payday lending by making it illegal for payday lenders to operate in the state. Since then, payday loans have remained illegal in the state. Despite the ban, however, some payday loan lenders have continued to offer loans in North Carolina, often through online lenders or lenders operating on tribal lands.
In North Carolina, the Attorney General’s office actively enforces the ban on payday loans. If you are offered a payday loan in North Carolina, it is illegal, and you should avoid it.
Alternative Options for Emergency Cash
While payday loans are not an option in North Carolina, there are other alternatives you can consider if you need emergency cash. Some options include:
- Personal loans: You can apply for a personal loan from a bank, credit union, or online lender. These loans typically have lower interest rates and more extended repayment terms than payday loans.
- Credit cards: If you have a credit card with available credit, you can use it to cover emergency expenses. While credit card interest rates can be high, they are still often less than payday loan rates.
- Sell unwanted items: Consider selling unwanted items around the house through online marketplaces, garage sales, or consignment shops.
- Ask for a payment plan: If you’re struggling with a bill payment, try negotiating a payment plan with the service provider. Most companies, such as utility providers, cell phone providers, and medical providers, would rather work with you on a payment plan than send your account to collections.
Interesting Facts About Payday Loans in Skyland, North Carolina
- In 2019, North Carolina Attorney General Josh Stein filed suit against Western Sky Financial LLC and CashCall Inc. for making predatory, high-interest loans to North Carolina consumers.
- A 2016 study by the Pew Charitable Trusts found that the average payday loan borrower is in debt for five months of the year, spending an average of $520 in fees to repeatedly borrow $375.
- A 2018 survey by Bankrate found that only 39% of Americans would be able to cover a $1,000 emergency with savings, with many turning to high-cost credit options like payday loans to cover unexpected expenses.
- In North Carolina, the maximum legal interest rate that can be charged on a loan is 36%. This limit includes interest and fees and applies to all consumer loans, including installment loans and personal loans.
Apply Now
If you’re looking for emergency cash, TheGuaranteedLoans can help connect you with a potential lender. Fill out our online application form, and we will match you with a lender that meets your needs and financial situation. Note that TheGuaranteedLoans is not a lender but rather a connector service between borrowers and lenders.
Note: Payday loans are illegal in North Carolina, and lenders who operate in the state are breaking the law. If you feel you have been misled by lenders who advertise payday loans in North Carolina, please contact the Attorney General’s office or the North Carolina Department of Justice.