Payday loans are becoming more popular in Minnesota and many other states within the US. For many people, taking out a payday loan Eases their financial burden especially when they need fast cash.
What Are Payday Loans
Payday loans are a type of loan where you receive a lump sum of money that you must pay back with your next paycheck. These loans are short-term and usually have a high-interest rate. They are available to people who have a steady source of income and can pay back the loan amount and the interest within a specific period.
Payday Loans in Bricelyn, Minnesota
Payday loans are legal in Minnesota, including in Bricelyn. According to the Minnesota Department of Commerce, payday lenders can loan up to $350 to Minnesota residents, and the loan term must not exceed 30 days.
However, payday lending laws in Minnesota are strict. For instance, payday lenders are allowed to charge up to $15 for every $100 borrowed. Additionally, the amount of interest charged on payday loans must not exceed 33% per annum. If a borrower does not repay the loan on time, the lender can charge additional fees and interest rate charges.
It is essential to note that payday loans cannot be rolled over or renewed in Minnesota. If a borrower cannot repay the loan on time, the lender must set up an installment payment plan.
How to Apply for a Payday Loan in Bricelyn, Minnesota
If you are considering applying for a payday loan in Bricelyn, Minnesota, you can do this online through TheGuaranteedLoans. We are not direct lenders, but we work with numerous lenders who can offer fast funding to those who qualify.
To apply, simply fill out our online application and wait for approval. If approved, you will be connected to a lender who will contact you to discuss loan terms and conditions.
Things to Consider Before Taking Out a Payday Loan
Payday loans can be a temporary solution to a financial crisis. However, they can also lead to long-term debt if not managed well. Here are a few things you should consider before taking out a payday loan in Bricelyn, Minnesota.
Interest rates and fees
Payday loans are short-term loans that usually come with high-interest rates and fees. Before you sign the loan agreement, make sure to understand the interest rate, fees, and the total amount you will pay back.
Repayment plan
A borrower must repay a payday loan within a particular period. If you cannot repay on time, the loan may accrue additional fees and charges. It is essential to understand the terms of repayment and to ensure you can repay the loan amount and interest on time.
Alternatives to payday loans
Before taking out a payday loan, consider other alternative options that are available. For example, you can consider asking family or friends for assistance, getting a personal loan from a bank, or looking into a credit card cash advance.
Interesting Facts About Payday Loans in Bricelyn, Minnesota
- A 2015 study found that the average payday loan size in Minnesota was $380, with an average annual percentage rate (APR) of 277%.
- A law was passed in 2013 to protect Minnesota consumers from repeated payday loan borrowing. Under this law, payday lenders must determine a borrower’s ability to repay the loan before issuing it.
- Minnesota payday lenders loaned $113.3 million in 2019, according to the state’s Department of Commerce
Conclusion
Payday loans can be a suitable solution to your financial crisis, but they come with high-interest rates and fees and must be managed carefully. Before you apply for a payday loan, ensure you can repay the loan amount and interest on time, and consider alternative options available.
Apply Now
If you would like to apply for a payday loan, fill out our online application today. Remember, TheGuaranteedLoans is not a direct lender, but we can facilitate your connection with potential lenders who offer fast funding to those who qualify.