If you’re looking for a payday loan in Saint Johnsbury, Vermont, unfortunately, you’re out of luck. Payday loans are prohibited in Vermont in an effort to protect residents from falling into debt traps. While payday loans were once a popular way to quickly access cash, they often left borrowers with high-interest rates and unmanageable debt.
Why Are Payday Loans Prohibited in Vermont?
In 2012, Vermont became the first state in the country to prohibit payday loans, capping interest rates on small loans at 18%. This move was in response to the devastating impact payday loans were having on low-income families, many of whom were caught in a cycle of debt and unable to repay their loans on time. By prohibiting payday loans, Vermont hoped to protect consumers from the predatory financial practices associated with these loans.
Alternatives to Payday Loans in Saint Johnsbury, Vermont
While payday loans may be off the table for Vermont residents, there are still a number of options available for those in need of fast cash. Some alternatives to payday loans include:
- Credit Cards: Depending on your credit score, you may be able to apply for a credit card with a low-interest rate. Be sure to pay off your balance on time to avoid accumulating interest.
- Personal Loans: Local banks and credit unions may offer personal loans with relatively low interest rates compared to payday loans.
- Crowdfunding: If you’re dealing with a financial emergency or unexpected expense, consider starting a crowdfunding campaign through a website like Kickstarter or GoFundMe to get the financial support you need.
Interesting Facts About Payday Loans in Saint Johnsbury, Vermont
- According to data from the Vermont Department of Financial Regulation, the average annual percentage rate (APR) on small loans in Vermont is just 12%. This is significantly lower than the national average of 391% for payday loans.
- Vermont is one of 17 states that prohibit payday loans. Other states that have banned these types of loans include Connecticut, Maryland, Massachusetts, and New Jersey.
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While we at TheGuaranteedLoans cannot connect you with a payday loan in Saint Johnsbury, we do offer connections to lenders for other types of loans. Our services are designed to connect you with lenders who can offer quick and easy access to the cash you need. Simply fill out our online application with some basic information, and we’ll match you with potential lenders. Remember, our services are free to use and we are not a direct lender. Instead, we facilitate the connection between borrowers and lenders to help you find the best loan options available.