Payday Loans in Fort McDowell, Arizona: What You Need to Know
Payday loans are a type of short-term loan that allows borrowers to access quick cash in order to cover unexpected expenses or emergencies. They’re typically offered by payday lenders, which are businesses that specialize in small-dollar loans.
However, in Arizona, payday loans are illegal. State law prohibits lenders from offering payday loans or other similar types of loans, like auto title loans.
Why Are Payday Loans Illegal in Arizona?
Payday loans have been banned in Arizona since 2010, when the state legislature passed the Arizona Consumer Lender Act. This legislation capped interest rates on loans at 36% and prohibited payday loans, auto title loans, and other types of loans that are considered to be predatory in nature.
At the time, many consumer advocates expressed concerns about the high interest rates that payday lenders charged, which often resulted in borrowers getting trapped in a cycle of debt. By outlawing payday loans, Arizona was able to protect consumers from these predatory lending practices.
What Are the Alternatives to Payday Loans in Fort McDowell, Arizona?
If you’re in need of quick cash, there are alternatives to payday loans that you can consider:
- Personal loans: Personal loans are installment loans that are designed to be repaid over a longer period of time, typically one to five years. They usually have lower interest rates than payday loans, and can be a good option if you need to borrow a larger amount of money.
- Credit cards: If you have a credit card, you may be able to use it to cover emergency expenses. While credit card interest rates can be high, they’re generally lower than payday loan rates.
- Credit counseling: If you’re struggling with debt, a credit counselor can help you explore your options and develop a plan for repaying your debts. Many credit counseling services are provided free of charge, or for a nominal fee.
Interesting Facts and Statistics About Payday Loans in Fort McDowell, Arizona
While payday loans are illegal in Arizona, that hasn’t stopped some lenders from attempting to take advantage of consumers. According to a 2016 report from the Consumer Federation of America, many consumers in the state are still falling prey to high-interest payday loans through online lenders, who are able to circumvent state law by operating on tribal lands or outside of the state entirely.
The report found that the typical payday loan in Arizona carried an annual percentage APR of 204%. Furthermore, many payday borrowers in the state were unable to repay their loans in full and ended up taking out additional loans to cover the initial debt. As a result, many borrowers ended up paying more in fees and interest than they originally borrowed, and became trapped in a cycle of debt.
Apply Now for Alternatives to Payday Loans in Fort McDowell, Arizona
At TheGuaranteedLoans, we understand that unexpected expenses can arise at any time, and that it can be difficult to find quick access to the funds you need. That’s why we offer a variety of loan options that can help you cover your expenses without resorting to payday loans.
As a connector service, we work with a network of reputable lenders who offer personal loans, installment loans, and other financial products that can help you get back on your feet. To get started, simply fill out our online application form, and we’ll match you with potential lenders who may be able to offer you a loan. Best of all, our service is completely free of charge, and there’s no obligation to accept any loan offers you receive.
Remember, payday loans are illegal in Arizona, but there are plenty of alternative options available to you. With TheGuaranteedLoans, you can get the cash you need to cover your expenses quickly and easily, without having to resort to risky payday loans.