Payday Loans in Fort Howard, Maryland
Payday loans, also known as cash advances, are short-term loans that typically need to be paid back in full on the borrower’s next payday. They can be a tempting solution for those in need of immediate cash, but they can also be very risky and potentially trap borrowers in a cycle of debt. In the state of Maryland, payday loans are prohibited. Let’s take a closer look at payday loans in Fort Howard, Maryland.
What are Payday Loans?
Payday loans are high-interest, short-term loans that are typically due within two weeks or on the borrower’s next payday. The amount of the loan is typically small, usually ranging from $100 to $1,500, depending on the borrower’s income level. The fees for payday loans can vary widely, but they are typically very high, with interest rates of up to 400%. This high cost of borrowing can quickly become a financial burden for borrowers who are already struggling to make ends meet.
Why are Payday Loans Prohibited in Maryland?
In 2002, Maryland passed a law that prohibited payday lending in the state. The law was aimed at protecting consumers from predatory lending practices and ensuring that borrowers have access to fair and affordable credit. Maryland was one of 15 states that outlawed payday lending, and it remains one of the few states that continue to prohibit this type of lending today.
What are the Alternatives to Payday Loans in Fort Howard?
For those in need of immediate cash, payday loans may seem like the only option. However, there are alternatives that can be a better choice for borrowers. Some of these alternatives include:
- Credit Union Loans: Credit unions often offer small loans with better terms and interest rates than payday lenders. They also offer financial counseling and assistance in managing debt.
- Personal Loans: Personal loans from banks or online lenders can be a good option for those with good credit. These loans typically have lower interest rates and longer repayment terms than payday loans.
- Credit Card Cash Advances: While credit card cash advances can also be expensive, they are usually less expensive than payday loans and offer more flexibility in repayment.
Interesting Facts and Statistics about Payday Loans in Fort Howard, Maryland
- 29 other states have legalized payday loans, making it a $40 billion industry in the United States. (source: Pew Charitable Trusts)
- The average payday loan borrower takes out eight loans per year, spending an average of $520 on interest. (source: Pew Charitable Trusts)
- In Maryland, 83% of payday loan borrowers took out a new loan on the same day they repaid their previous loan. (source: Pew Charitable Trusts)
- Payday lending costs Maryland families $187 million per year in fees. (source: Center for Responsible Lending)
Apply Now
If you are in need of immediate cash, avoid payday loans and consider one of the alternatives listed above. If you need help finding a lender, TheGuaranteedLoans can help connect you with potential lenders who offer personal loans that fit your financial needs. Our service is free and easy to use. Simply fill out our online application form, and we will do the rest!
Please remember that TheGuaranteedLoans is not a direct lender, but rather a connector service. We work with potential lenders to find the best loan options for you. We also encourage responsible borrowing and urge our clients to only take out loans that they can afford to repay.