Payday Loan 
Title Loan 
Personal Loan 
Business Loan 
Payday Loans in Brockton, Massachusetts
Payday loans are short-term loans that don’t require a credit check. They are offered to individuals who need immediate access to cash to pay for unexpected or emergency expenses. While payday loans can be a quick and convenient way to obtain funding, they can be incredibly costly and come with a high risk of default. Unfortunately, this type of loan is prohibited in Massachusetts—so Brockton residents must look for other financial solutions if they’re struggling to make ends meet.
What Is a Payday Loan?
Payday loans are small-dollar, short-term loans that are typically due on the borrower’s next payday—hence the name. The typical loan amount usually ranges between $100 and $1,000. The borrower must provide a borrower’s check to the lender postdated for the loan’s due date in order to receive their loan.
By law, payday lenders are required to disclose the loan’s annual percentage rate (APR) and the fees associated with the loan. Depending on the lender, the fees can range from $15 to $30 for every $100 borrowed. That’s an incredibly high fee for such a short-term loan and can cost the borrower hundreds of dollars in fees. It’s important to remember that payday loans should only be used as a short-term solution and not as a long-term financial solution.
Why Are Payday Loans Prohibited in Massachusetts?
The Massachusetts legislature determined that the high interest rates and fees associated with payday loans put borrowers at an increased risk of default. In addition, the state was concerned about the potential for predatory lending practices. By prohibiting payday loans, the state hopes to protect consumers from falling into a debt spiral due to taking out too many payday loans or being unable to repay the loan.
Alternatives to Payday Loans in Brockton, Massachusetts
The good news is that there are a number of alternatives to payday loans in Brockton, Massachusetts. The following are some of the more common options:
- Personal Loan: Personal loans are unsecured loans that can be used for a variety of reasons. These types of loans have fixed interest rates and monthly payments that are spread out over a period of time. Personal loans typically have lower interest rates than payday loans and can be a better option for individuals who need more than a few hundred dollars.
- Credit Card: Credit cards can be a great way to pay for unexpected expenses. Interest rates and fees may vary depending on the card issuer, but most credit cards can provide emergency funds with no fees as long as the balance is paid off in full each month.
- Home Equity Line of Credit: Homeowners may qualify for a home equity line of credit (HELOC). This type of loan typically offers much lower interest rates than payday loans and can be used for a variety of reasons. However, it is important to remember that if you default on a HELOC, your home could be at risk of foreclosure.
F.A.Q.
Are payday loans legal in Massachusetts?
No, payday loans are prohibited by law in Massachusetts.
What are some alternatives to payday loans?
Alternatives to payday loans include personal loans, credit cards, home equity lines of credit, and other types of installment loans.
What should I consider before taking out a personal loan?
It is important to consider your financial situation carefully before taking out a personal loan. You should also take into account the interest rate, fees, and repayment terms of the loan before signing any documents.
Apply Now
If you’re looking for a payday loan alternative in Brockton, Massachusetts, TheGuaranteedLoans can help. We are not a lender, but we can connect you with lenders in our network who can provide you with a loan. To get started, complete our online application form and one of our representatives will contact you to discuss your options.