Payday Loans in Whately, Massachusetts: Understanding the Laws and Alternatives
Payday loans are short-term loans that borrowers can get to deal with sudden expenses, such as medical bills or car repairs. While they may seem like a convenient option, payday loans can be incredibly expensive, with an average annual percentage rate (APR) of 391 percent in the United States.
Why Are Payday Loans Prohibited in Massachusetts?
In Massachusetts, payday loans have been prohibited since 2008 under state law that sets a maximum interest rate of 23 percent and caps additional fees at no more than $20. This law helps protect Massachusetts residents from the predatory practices associated with payday loans, which can trap borrowers in cycles of debt and financial instability.
What Are the Alternatives to Payday Loans in Whately, Massachusetts?
Fortunately, there are many alternatives available to Massachusetts residents who need quick access to cash. Here are a few options:
- Personal loans from banks or credit unions
- Credit cards
- Emergency assistance programs
- Low-interest loans from nonprofits
Interesting Facts and Statistics about Payday Loans in Whately, Massachusetts
- According to Pew Charitable Trusts, the average Massachusetts payday loan borrower takes out eight loans a year.
- Payday lenders often target low-income communities and people of color.
- Payday lending drains $4.1 billion in fees from cash-strapped Americans annually, according to the Center for Responsible Lending.
Apply Now: Connect with Lenders for Financial Assistance
If you’re considering a payday loan in Whately, Massachusetts, know that they’re prohibited under state law. Instead, connect with lenders through TheGuaranteedLoans website. We’re a connector service, not a direct lender, and we help borrowers find potential lenders that meet their financial needs. Apply now and get the help you need today.