Payday Loans in Lake Harmony, Pennsylvania: What You Need to Know
Payday loans are small, short-term loans that are typically used to help people bridge the gap between paychecks. These loans are often marketed as a quick and easy way to get cash when you need it most. However, in Pennsylvania, payday loans are prohibited by law. If you live in Lake Harmony or anywhere else in Pennsylvania, here’s what you need to know about payday loans.
What are payday loans?
Payday loans are loans that are typically due on the borrower’s next payday. They are usually for small amounts, ranging from a few hundred dollars to a few thousand dollars, and typically have very high-interest rates and fees. In some cases, borrowers are required to provide a post-dated check or authorize an electronic withdrawal from their bank account to secure the loan.
Why are payday loans prohibited in Pennsylvania?
In 2018, Pennsylvania passed a law prohibiting payday lenders from operating in the state. The law was designed to protect consumers from the high fees and interest rates associated with payday loans, which can trap borrowers in cycles of debt. While payday loans may seem like a quick fix, they often lead to long-term financial problems.
What are the alternatives to payday loans?
If you’re struggling to make ends meet between paychecks, there are several alternatives to payday loans that you can consider:
- Personal loans from a credit union or bank
- Credit card cash advances
- Borrowing from friends or family
- Working out a payment plan with your creditors
- Side jobs or gig work
Interesting Facts and Statistics About Payday Loans in Pennsylvania
- According to the Pennsylvania Department of Banking and Securities, payday lenders made more than 950,000 loans in the state in 2016, totaling more than $339 million in principal.
- The average payday loan amount in Pennsylvania was $350, and the average interest rate was 339%. This means the average borrower paid more than $52 in interest and fees for every $100 borrowed.
- Payday lenders in Pennsylvania disproportionately target low-income communities, with more than half of payday loan stores located in zip codes with poverty rates above the state average.
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While payday loans are prohibited in Pennsylvania, TheGuaranteedLoans can help connect you with lenders who are willing to work with Pennsylvania residents. As a connector service, we are not a direct lender, but we can help connect you with potential lenders who may be able to provide the cash you need. To get started, simply fill out our online application today.