Payday Loans in Stewartsville, New Jersey

What You Need To Know About Payday Loans in Stewartsville, New Jersey

Payday loans are small, short-term loans that are typically due on the borrower’s next payday. While they may seem like a quick and easy way to get cash, it’s important to note that payday loans are prohibited in New Jersey. In this article, we’ll explore the reasons why payday loans are illegal in New Jersey, how they work, and where you can turn to for financial assistance if you find yourself in a tight spot.

Why are payday loans illegal in New Jersey?

Payday loans have been banned in NJ since 2005, as lawmakers recognized the high interest rates and fees that often came with these loans. Since then, lenders have looked for loopholes that would allow them to continue offering payday loans in the state without running afoul of the law, but so far their efforts have been unsuccessful. Additionally, the state’s usury laws prohibit charging more than 30% interest on a loan, making most payday loans unfeasible for lenders in the state.

How do payday loans work?

Payday loans are typically advertised as a way for borrowers to get quick cash to cover unexpected expenses. The borrower writes a post-dated check to the lender for the amount they are borrowing plus fees and interest, and the lender gives them the cash. The check is held for two weeks or until the borrower’s next payday when the lender cashes it. If the borrower can’t pay the full amount back on their payday, they can roll over the loan, incurring additional fees and interest.

The problem with payday loans is that they often come with extremely high interest rates and fees. For example, a two-week payday loan can come with an APR (annual percentage rate) of 400% or more, which means that the borrower will owe $15-$30 in interest alone for every $100 borrowed.

Where can you turn for financial assistance instead of payday loans?

If you find yourself in need of financial assistance, there are many options available that are safer and more affordable than payday loans. Some options include:

• Personal loans from credit unions or online lenders
• Low-interest credit cards
• Government assistance programs such as SNAP (Supplemental Nutrition Assistance Program) or LIHEAP (Low-Income Home Energy Assistance Program)
• Community organizations or charities that offer financial assistance

It’s important to note that if you have to apply for a payday loan in an emergency, that you do your research and read all the fine print to make sure you understand the fees and interest rates you’ll be charged. You should also have a plan in place to pay back the loan as soon as possible to avoid rolling it over and incurring additional fees and interest.

Interesting Facts About Payday Loans in Stewartsville, New Jersey

• In 2018 alone, New Jersey residents paid over $300 million in payday loan fees and interest.
• New Jersey is one of only 14 states (plus the District of Columbia) to ban payday lending.
• Despite the ban, many online payday lenders still target New Jersey residents, taking advantage of the internet to skirt the state’s laws.
• Many borrowers who take out payday loans are stuck in a cycle of debt, with the Consumer Financial Protection Bureau reporting that 80% of payday loans are rolled over or followed by another loan within 14 days.

Apply Now

If you’re in need of financial assistance, TheGuaranteedLoans can help connect you with potential lenders who can provide personal loans or other options that may be available to you. Remember, we are a connector service, not a direct lender, and we can help you find the financial assistance you need without resorting to payday loans.

Apply now and find out how TheGuaranteedLoans can help you get the funds you need.