Payday Loans in Eighty Four, Pennsylvania: What You Need to Know
Payday loans, also known as cash advances or paycheck loans, are a type of short-term loan that can be tempting for those who need immediate cash. However, in Pennsylvania, payday loans are considered illegal and prohibitive by state law. This is because payday loans come with excessive interest rates and fees that leave borrowers in a cycle of debt. In this article, we’ll discuss payday loans in Eighty Four, Pennsylvania, and what you need to know before considering taking out a short-term loan.
Why are Payday Loans Illegal in Pennsylvania?
Payday loans are not permitted in Pennsylvania because of the high-interest rates they come with. The law’s goal is to protect consumers from the debt cycle that often comes with these types of loans. In Pennsylvania, lenders are not permitted to charge interest rates greater than 6% on loans made to consumers or businesses. However, payday lending companies typically charge interest rates of up to 1,000%. This far exceeds the limits set by Pennsylvania law and leaves consumers unable to pay back loans on time, adding more debt to their lives.
What are the Alternatives to Payday Loans in Eighty Four, Pennsylvania?
If you are in need of immediate cash, there are other alternatives to racking up debt with payday loans. Consider the following options:
- Personal Loans: Personal loans from banks and credit unions offer more favorable interest rates and payment terms than payday loans. Shop around for a loan with a competitive interest rate and a payment plan that works for you.
- Credit Counseling: If your financial troubles extend beyond a single loan, consider seeking professional help from a credit counselor. These professionals can help with budgeting, finding debt relief, and even negotiating with creditors.
- Payment Plans: For larger expenses, try negotiating a payment plan with the company you owe money to. Most companies are willing to work with you if you are upfront and honest about your financial struggles.
Interesting Facts and Statistics about Payday Loans in Eighty Four, Pennsylvania
- The average payday loan borrower in Pennsylvania takes out eight loans per year.
- Seven out of ten borrowers use payday loans for recurring expenses like rent, food, and utility bills.
- Payday lending cost Pennsylvania residents over $1 billion in fees and interest from 2012-2018.
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If you are still considering a payday loan, it’s crucial to understand the risks and pitfalls that come with them. TheGuaranteedLoans can connect you with lenders who offer a variety of loan options, including personal loans, installment loans, and lines of credit.
Remember, TheGuaranteedLoans is not a direct lender but a connector service that works to match borrowers with reliable lenders. We make it easy to apply for a loan online without the hassle and stress of traditional lending portals. Apply now and see how TheGuaranteedLoans can help you get the money you need without the risk of payday loans.