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Payday Loans in Marriottsville, Maryland: What You Need to Know
If you reside in Marriottsville, Maryland and find yourself in need of quick cash, you might consider payday loans as an option. However, it’s important to understand that payday loans are prohibited in Maryland. Here’s what you need to know.
What are payday loans?
Payday loans are short-term loans that typically come with high-interest rates and fees. Borrowers use their next paycheck as collateral to secure the loan, and repayment is usually required within 14-31 days.
Why are payday loans prohibited in Maryland?
In 2002, Maryland’s state legislature passed a law capping interest rates on loans at 33%. Payday lenders, who often charged rates in excess of 600%, were effectively shut out of the state. Maryland is one of 15 states nationwide to prohibit payday loans.
What are the risks of using payday loans?
High interest rates:
The annual percentage rate (APR) on payday loans can be as high as 400%. This means that if you borrow $500, you could end up paying back $600 or more.
Debt cycle:
Borrowers who are unable to repay the loan on time may be charged additional fees and interest, leading to a cycle of debt that can be difficult to break free from.
Impact on credit score:
Missed payments or defaulted loans can appear on your credit report, negatively impacting your credit score and making it harder to obtain credit in the future.
What are the alternatives to payday loans?
If you need quick cash, there are several alternatives to consider:
- Credit card cash advance: If you have a credit card, you may be able to withdraw cash at an ATM. Interest rates on cash advances are typically lower than those on payday loans.
- Personal loan: Some banks and credit unions offer personal loans with lower interest rates and longer repayment terms.
- Friends and family: You may be able to borrow money from friends or family members without incurring interest or fees.
Interesting Facts and Statistics about Payday Loans in Marriottsville, Maryland:
- In 2019, the number of payday loans issued in Maryland was 397,000, down from 462,000 in 2018.
- The average loan amount in Maryland was $375, and the average APR was 527%.
- 24% of payday loan borrowers in Maryland default on their loans.
Apply Now
At TheGuaranteedLoans, we understand that unexpected expenses can arise at any time. While we do not offer payday loans in Maryland, we specialize in connecting borrowers with potential lenders who can offer personal loans with lower interest rates and longer repayment terms.
To get started, simply fill out our online application. We’ll review your information and connect you with a lender that’s right for you. Remember, we are not a direct lender, and we encourage all of our customers to borrow responsibly.