Although payday loans are prohibited in Pennsylvania, many consumers in Kelayres find themselves in need of quick cash for unexpected expenses. Payday loans are a type of short-term borrowing that is typically due on the borrower’s next payday. These loans often come with high interest rates and fees, making them risky for borrowers who may struggle to repay the loan in full by the due date.
Why are payday loans prohibited in Pennsylvania?
In 2008, Pennsylvania passed a law that prohibited payday loans in the state. The law, known as the Check Cashing Licensing Act, capped interest rates on small loans at 24%, effectively making payday lending illegal. The law was put in place to protect consumers from the predatory lending practices often associated with payday loans.
What are the alternatives to payday loans in Kelayres?
Although payday loans are not an option for residents of Kelayres, there are alternative types of loans that may help when expenses arise. Some options to consider include:
- Personal loans: These loans are generally unsecured and can be used for a range of expenses. They typically have lower interest rates than payday loans and longer repayment terms.
- Credit cards: For small, unexpected expenses, a credit card may be a good option. However, it’s important to use them responsibly and pay the balance in full each month to avoid high interest charges.
- Credit counseling: If you’re facing overwhelming debt and struggling to make ends meet, credit counseling may be an option. A credit counselor can work with you to create a budget, negotiate with creditors, and develop a plan to get back on track financially.
Interesting Facts and Statistics about Payday Loans in Kelayres, Pennsylvania
- According to the Center for Responsible Lending, 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 survey conducted by Pew Charitable Trusts found that 69% of payday loan borrowers use the funds to cover recurring expenses, such as rent and bills, rather than unexpected expenses.
- The same survey also found that 12 million Americans use payday loans each year, with an average loan size of $375 and an average fee of $55 per loan.
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Although payday loans are illegal in Pennsylvania, TheGuaranteedLoans offers a fast and easy application process for other types of loans you may qualify for. As a connector service, we match borrowers with potential lenders who can provide the cash they need. Our online application is simple and secure, and you could receive a decision in minutes. Don’t wait – apply now to see what loan options may be available to you.