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Business Loan Understanding Payday Loans in Imlaystown, New Jersey
Payday loans are short-term loans that are usually paid back on the borrower’s next payday. While payday loans may seem like a easy way to obtain quick cash, they can be extremely expensive and can lead to an unending cycle of debt. If you are a resident of Imlaystown, New Jersey, it’s important to understand that payday lending is prohibited in your state. Let’s dive deeper into what that means for you.
The Prohibition of Payday Lending in New Jersey
Back in 2006, New Jersey state legislators voted to prohibit payday lending in the state, along with cash advance loans and car title loans. New Jersey was the first state to implement this kind of ban. The state’s legislators were determined to protect consumers from the cycle of debt and financial instability that often comes with payday loans.
The state’s usury law sets a maximum interest rate of 30 percent on loans offered to New Jersey residents. Payday lenders frequently charge rates of 300% APR or higher, which is why payday lending is prohibited in the state.
If a lender violates the New Jersey lending law, the borrower can sue the lender for all fees and interest that they paid above the 30 percent limit. That being said, if you are a resident of Imlaystown, you should not pursue a payday loan from any lender, whether they operate in-state or online.
Benefits of Avoiding Payday Loans
By avoiding payday loans, you can prevent an endless cycle of debt that can be difficult to escape. Many borrowers end up needing to take out multiple loans to pay off the original loan. Since payday loans come with extremely high interest rates, you can end up paying back much more than you originally borrowed, leading to financial instability.
There are other options available to Imlaystown residents who need quick cash. For example, credit unions and small-dollar lending programs offer loans with much lower fees and interest rates. If you find yourself in need of fast cash, explore these options before considering a payday loan.
Interesting Facts about Payday Loans
- Payday lending is prohibited in 14 states, including New Jersey.
- A typical payday borrower is in debt for five months per year and spends an average of $520 in fees to borrow $375.
- The majority of payday borrowers end up taking out a loan for at least four months.
- A 2016 Consumer Financial Protection Bureau report found that over 80% of payday loans are rolled over or renewed.
Apply Now for Alternative Lending Options
Are you a resident of Imlaystown facing financial hardship and in need of quick cash? At TheGuaranteedLoans, we understand the difficult circumstances that can arise and we want to help. We are not a direct lender, but we are a connector service that can help you find a lender willing to work with your unique financial situation.
We provide a simple online application process that only takes a few minutes to complete. We work with a network of lenders who offer loans with low interest rates and flexible repayment options. Don’t let financial hardship bring you down. Apply now and see how we can help you get back on your feet.
Remember, payday lending is prohibited in New Jersey. But there are other options available to you. Don’t hesitate to reach out to TheGuaranteedLoans in your time of need.