Payday Loans in North Scituate, Massachusetts: Understanding the Prohibitions
When you’re in a tough financial situation, it can seem like there’s nowhere to turn to for help. You might consider taking out a payday loan to help cover expenses, but before you do so, it’s important to understand the laws and regulations surrounding payday loans in North Scituate, Massachusetts.
The Prohibitions of Payday Loans in Massachusetts
It’s important to know that payday loans are prohibited in Massachusetts. In fact, the Massachusetts Division of Banks specifically notes that payday loans are not authorized under Massachusetts law, and that there are no payday lenders legally operating within the state.
Instead, Massachusetts residents have other borrowing options available to them. Credit unions, for example, often offer short-term loans with lower interest rates and more favorable terms than payday loans. Additionally, there are a number of free or low-cost credit counseling services operating throughout Massachusetts that can help individuals in need of financial assistance.
Understanding Payday Loans
If you’re unfamiliar with payday loans, it’s important to understand their structure, as well as the risks involved with taking out these types of loans. Typically, individuals take out payday loans in order to cover unexpected expenses, such as medical bills or car repairs. These loans are designed to be repaid within a short period of time, usually within a few weeks or one month. In order to secure a payday loan, borrowers often provide the lender with access to their bank account or a postdated check for the loan amount plus fees.
Unfortunately, payday loans often come with extremely high interest rates, often in excess of 300%. This can lead to a “debt cycle,” where borrowers have difficulty repaying their loan and may be forced to take out additional loans in order to cover the fees and interest associated with their original loan.
Finding Help in North Scituate, Massachusetts
Fortunately, there are a number of resources available to help individuals in North Scituate, Massachusetts who are struggling with debt or financial hardship. The Massachusetts Division of Banks is a valuable resource for individuals looking to understand their borrowing options and consumer rights. Additionally, local credit unions and non-profit organizations can provide assistance to individuals in need.
Interesting Facts and Statistics
- Massachusetts has some of the strongest usury laws in the country, which place limits on the interest rates that can be charged on loans.
- According to a study by the Consumer Financial Protection Bureau, the average payday loan borrower takes out nine loans per year, and spends more than half the year in debt to payday lenders.
- In 2016, the average payday loan in Massachusetts had an APR of 384%.
Apply Now
At TheGuaranteedLoans, we understand that everyone’s financial situation is different. That’s why we offer a free application service that can connect you with a lender who can provide the funds you need to cover your expenses. Our online application is fast, easy, and secure. Best of all, we work with lenders who offer transparent loan terms and reasonable interest rates. However, it’s important to note that we are not a direct lender, and do not make any lending decisions.
If you find yourself in need of financial assistance, fill out our online application today. Our team is here to help you every step of the way.