Payday Loans in South Mills, North Carolina
In North Carolina, payday loans are prohibited. However, this doesn’t stop some consumers from seeking these short-term loans, which are notorious for their high interest rates and the potential for getting stuck in a cycle of debt.
What are payday loans?
Payday loans are small loans (typically less than $500) that are meant to hold someone over until their next paycheck. Consumers take out these loans with the promise to pay them back in full, plus interest and fees, on their next payday.
These loans are known for their high interest rates and short repayment terms. In North Carolina, the annual percentage rate (APR) on a payday loan can be as high as 400%.
Why are payday loans prohibited in North Carolina?
In 2001, North Carolina became the first state in the country to prohibit payday lending. The North Carolina General Assembly found that payday loans trap consumers in a cycle of debt, with borrowers often taking out new loans to pay off previous ones.
The General Assembly also found that payday loans disproportionately affect low-income communities and often have a negative effect on the financial well-being of borrowers. In addition, payday lenders often use aggressive collection tactics and take advantage of vulnerable consumers.
Alternatives to payday loans
For North Carolina residents who are in need of quick cash, there are alternatives to payday loans. These include:
- Small-dollar loans from credit unions or community banks
- Personal loans from family or friends
- Credit counseling and debt management programs
These alternatives may have lower interest rates and more favorable terms than payday loans.
Interesting facts about payday loans in South Mills, North Carolina
- In 2019, the average payday loan amount in North Carolina was $250.
- From 2010-2011, payday loan companies in North Carolina made more than $1 billion in loans with an average interest rate of 400%.
- In 2018, the North Carolina Attorney General’s office received more than 300 complaints about payday lending.
Apply Now
If you’re in need of cash and live in South Mills, North Carolina, remember that payday loans are illegal. However, TheGuaranteedLoans can connect you with potential lenders who offer other types of loans. Fill out our online application to get started. Keep in mind that TheGuaranteedLoans is a connector service, not a direct lender.
Remember that taking out any type of loan is a serious financial decision, and it’s important to do your research and consider all options before making a decision.
At TheGuaranteedLoans, we’re committed to providing our customers with accurate information and access to trusted lenders. Contact us today to learn more.