Are you considering a payday loan in Robertsdale, Pennsylvania? It’s important to know that payday loans are prohibited in Pennsylvania, and there are other financial options available to you.
What are payday loans?
Payday loans are short-term, high-interest loans designed to help borrowers cover unexpected expenses between paychecks. Borrowers typically write a post-dated check or provide access to their bank account in exchange for the loan amount plus fees.
In Pennsylvania, payday loans are prohibited by law. This means that lenders cannot offer payday loans to consumers, and borrowers cannot obtain them.
Why are payday loans prohibited in Pennsylvania?
The Pennsylvania Department of Banking and Securities states that payday loans are prohibited in the state because of their high interest rates and fees. The average APR on a payday loan is 391%, which can trap borrowers in a cycle of debt.
Additionally, payday loans have been found to disproportionately impact low-income borrowers and communities of color. Prohibiting payday loans in Pennsylvania helps protect vulnerable populations from predatory lending practices.
What are the alternatives to payday loans in Robertsdale, Pennsylvania?
If you’re facing an unexpected expense and need cash to cover it, there are alternatives to payday loans in Robertsdale, Pennsylvania.
- Credit union loans: Credit unions are nonprofit financial institutions that offer small-dollar loans with lower interest rates and fees than payday loans.
- Personal loans: You may be able to obtain a personal loan from a bank or online lender with more favorable terms than a payday loan.
- Credit counseling: If you’re struggling with debt, credit counseling can provide you with resources and tools to manage your finances and access affordable credit.
Interesting facts about payday loans in Robertsdale, Pennsylvania
- Pennsylvania’s prohibition of payday loans is part of a larger trend of states limiting or banning the practice. Seventeen states, plus the District of Columbia, have laws in place capping interest rates on payday loans or prohibiting them altogether.
- A study by the Pew Charitable Trusts found that the average payday loan borrower takes out eight loans per year and spends $520 on interest and fees.
- The Consumer Financial Protection Bureau (CFPB) found that 80% of payday loans are either rolled over or followed by another loan within 14 days.
Apply now for alternative loan options
If you’re in need of cash but can’t obtain a payday loan in Robertsdale, Pennsylvania, TheGuaranteedLoans can help connect you with potential lenders offering alternatives like personal loans or credit union loans. Our quick and easy online application process takes just minutes to complete, and you could receive a decision in as little as 24 hours.
Remember, TheGuaranteedLoans is a connector service, not a direct lender. We work with a network of verified lenders to help you find a loan option that fits your needs and budget. Apply now to see what options are available to you.