Payday loans in Mount Sherman, Kentucky: everything you need to know
When you need quick cash to cover expenses or emergencies, payday loans can be a viable option. While payday loans often come with high interest rates and fees, they can provide much-needed funds in a pinch. However, it’s important to understand the laws and regulations around payday loans in your state before you start borrowing. In this article, we’ll explore everything you need to know about payday loans in Mount Sherman, Kentucky.
What are payday loans?
Payday loans are short-term loans typically amounting to $500 or less. They are usually due on your next payday, hence the name. To get a payday loan, borrowers must typically provide proof of income and a post-dated check or access to their bank account. Payday loans can be obtained from payday lenders or check cashers, which are the only institutions allowed to offer payday loans in Kentucky.
Payday loan laws in Mount Sherman, Kentucky
As mentioned earlier, payday lending is legal in Kentucky but is only permitted through check cashers, who are regulated by the Kentucky Department of Financial Institutions. The maximum amount you can borrow is $500, and lenders can charge up to $15 per $100 borrowed in fees. In terms of interest, payday loans cannot exceed a rate of 460% APR.
It’s important to note that Kentucky laws specifically prohibit rollovers or renewals on payday loans. This means that you cannot take out a new loan to pay off an existing one. This is designed to prevent borrowers from getting trapped in a cycle of debt.
Who can get a payday loan in Mount Sherman?
To qualify for a payday loan in Mount Sherman, Kentucky, you must be at least 18 years old and have a steady source of income. You must also provide documentation that proves your residency (such as a utility bill) and a valid form of identification, such as a driver’s license or passport.
The downside of payday loans
While payday loans can provide quick cash for emergencies, they come with some significant downsides. The high fees and interest rates can quickly add up, making the loan far more expensive than the amount borrowed. Additionally, payday loans can be a slippery slope towards a cycle of debt, especially if you’re unable to pay off the loan on the due date. It’s important to consider all options before taking out a payday loan.
Facts and statistics about payday loans in Mount Sherman, Kentucky
- The average loan amount for payday loans in Kentucky is $395
- According to the Kentucky Coalition for Responsible Lending, the average annual percentage rate (APR) for payday loans in Kentucky is around 400%
- A study by the Consumer Financial Protection Bureau found that 80% of payday loans are rolled over into new loans within 14 days, leading to increased fees and debt
Apply now
If you’re in need of a payday loan in Mount Sherman, Kentucky, fill out an application on TheGuaranteedLoans website. As a connector service, we work with a network of potential lenders to help find the best loan option for you. Our application process is quick and easy, and we handle all the hard work for you. Apply now and get the cash you need in no time.