Welcome to TheGuaranteedLoans, your trusted source for all things loan-related. While we typically focus on payday loans and other types of lending, today we want to talk about payday loans in Sun Valley, Arizona.
The Facts about Payday Loans in Sun Valley, Arizona
Before we dive in, it’s important to note that payday loans are actually illegal in Arizona. As of 2010, the state passed a law that prohibited payday lenders from operating in Arizona. While some online lenders may still try to offer services to Arizona residents, it’s important to understand that these loans are not legally valid in the state.
Why did Arizona pass this law? According to a report from The Pew Charitable Trusts, the average payday loan borrower in Arizona takes out 10 loans per year, with an average loan amount of $314 and an average APR of 459%. These high-interest loans put borrowers at risk of falling deeper into debt, which is why many states have cracked down on payday lending.
The Dangers of Payday Loans
While payday loans may seem like a quick and easy solution when you need cash fast, they come with a high price. With interest rates as high as 400-500%, borrowers can quickly find themselves trapped in a cycle of debt.
According to a report from the Consumer Financial Protection Bureau (CFPB), more than 80% of payday loans are rolled over or renewed within two weeks, meaning that borrowers are taking out new loans to pay off old ones. This can lead to a cycle of debt that can be difficult to escape.
Additionally, many payday lenders require access to borrowers’ bank accounts in order to make automatic withdrawals. This can lead to additional fees and overdraft charges if the borrower doesn’t have enough money in their account to cover the payment.
The Alternatives to Payday Loans
If you’re in need of quick cash, there are alternatives to payday loans that can help you avoid the high interest rates and cycle of debt. Here are some options to consider:
- Personal Loans: While personal loans may take longer to process than payday loans, they typically come with lower interest rates and more flexible terms.
- Credit Cards: If you have a credit card, using it for a cash advance may be a better option than a payday loan. Just be aware that cash advances typically come with a higher interest rate than other credit card purchases.
- Community Assistance Programs: Many communities offer assistance programs for low-income residents. These programs may be able to help you with things like food, housing, and medical expenses.
Interesting Statistics about Payday Loans
- In 2019, the average payday loan borrower took out 10 loans per year, with an average loan amount of $375 and an average interest rate of 391%.
- In 2018, the payday lending industry made $9.2 billion in fees alone.
- In 2020, the Consumer Financial Protection Bureau (CFPB) proposed new rules that would require lenders to verify borrowers’ ability to repay before issuing a loan.
Apply Now
If you’re in need of quick cash, TheGuaranteedLoans can help. But remember, payday loans are illegal in Arizona. Instead, consider one of the alternatives we mentioned above. If you’re unsure which option is right for you, our team of loan experts can help you find the best solution for your needs.
Applying is easy – just fill out our online application and we’ll connect you with potential lenders who can help you get the cash you need. Remember, we’re a connector service, not a direct lender. That means we don’t issue loans directly, but we’ll help you find lenders who can.
Final Thoughts
While payday loans may seem like an easy way to get quick cash, they come with a high price. If you’re considering a payday loan, we urge you to explore your alternatives first. And if you do decide to take out a loan, be sure to read the terms and conditions carefully and make sure you understand all of the fees and interest rates before signing on the dotted line. At TheGuaranteedLoans, it’s our mission to help you make informed decisions about your finances and find the best lending solutions for your needs.