Payday Loan 
Title Loan 
Personal Loan 
Business Loan 
Payday Loans in Frenchmans Bayou, Arkansas
Payday loans are an easy-to-access form of credit for many people, especially those who need money quickly. However, payday loans are illegal in the state of Arkansas, including Frenchmans Bayou. In this article, we’ll discuss how payday loans work, why they are prohibited in Arkansas, and the alternatives available to individuals in Frenchmans Bayou who need quick cash.
What are Payday Loans?
A payday loan is a short-term loan that’s typically due on your next payday. These loans are designed to help people bridge the gap between paychecks when they need money quickly. Typically, payday loans are for small amounts – usually less than $500. The borrower writes a post-dated check or provides authorization for the lender to electronically withdraw funds from their bank account for the amount borrowed plus any fees or interest.
While payday loans can be a helpful resource for people who need money in a hurry, they can also be quite expensive. According to the Consumer Financial Protection Bureau (CFPB), the typical payday loan borrower pays $15 in interest for every $100 borrowed. That means if you borrow $500, you might owe $575 on your next payday.
Why are Payday Loans Prohibited in Arkansas?
Payday loans have been illegal in Arkansas since 2008. The state’s Attorney General, Dustin McDaniel, took action against payday lenders, stating that their business practices were illegal and harmful to consumers.
Under the Arkansas Constitution, lenders are prohibited from charging more than 17 percent APR on loans. However, payday lenders were charging up to 400 percent APR on their loans, which is more than 20 times the legal limit. This predatory lending practice often left borrowers with mounting debt and financial instability.
Alternatives to Payday Loans in Frenchmans Bayou
Even though payday loans aren’t an option in Arkansas, there are still alternatives available to individuals who need quick cash. Below are a few options:
- Credit Counseling: Nonprofit organizations like the National Foundation for Credit Counseling (NFCC) offer free counseling services to help people manage their debt and improve their credit score. These organizations can also help you create a budget and set financial goals.
- Personal Loans: Some banks and credit unions offer small personal loans that can be used for unexpected expenses. While these loans may not be as fast as payday loans, they generally have lower interest rates and fewer fees.
- Cash Advance: Some credit cards offer cash advances, which allow you to withdraw money from an ATM or bank. However, cash advances often have high interest rates and fees, so be sure to read the fine print before taking out a cash advance.
Interesting Facts About Payday Loans in Frenchmans Bayou, Arkansas
- There are no payday lenders licensed to operate in Arkansas: Despite the fact that payday lending is illegal in the state, some lenders may try to operate under the radar.
- Payday loans are more expensive than other types of credit: Payday loans can have APRs of up to 400%, while credit card APRs typically range from 12% to 30%.
- Payday loans can lead to a cycle of debt: Because payday loans are due on your next payday, borrowers may find themselves unable to pay back the loan and may need to take out another loan to cover the first one. This cycle of debt can be difficult to break.
Apply Now
While payday loans are prohibited in Arkansas, TheGuaranteedLoans is here to help connect you with potential lenders who can assist you with other types of loans. Simply fill out our online application and we’ll connect you with lenders who may be able to assist you. Please note that TheGuaranteedLoans is a connector service and not a direct lender. We do not make lending decisions and we are not responsible for the terms and conditions of any loan you may receive. We simply facilitate your connection with potential lenders.
If you need quick cash in Frenchmans Bayou, Arkansas, TheGuaranteedLoans is here to help. Apply now and get connected with potential lenders who may be able to assist you.