Payday loans, also known as cash advances, are short-term loans that are marketed as a quick and easy way to get money when you need it. However, it’s important to note that payday loan companies tend to charge extremely high-interest rates and fees, making it difficult for borrowers to pay back the loan on time.
In Mastic Beach, New York, payday loans are prohibited by state law. The New York State Department of Financial Services has taken steps to protect consumers from falling into debt cycles by outlawing payday loans. Loans with terms of less than 60 days and APR exceeding 25% are explicitly prohibited and deemed as illegal in the state of New York.
Why are payday loans a bad idea?
Payday loans may seem like a quick-fix solution when you’re in need of cash. However, these loans tend to be predatory, and many people who take them out often find themselves in deeper debt than they were before.
The main reason payday loans are considered a bad idea is the high-interest rates and fees that can come with these loans. Payday lenders commonly charge fees and interest rates that add up to the equivalent of an annual percentage rate (APR) of 400% or more. This means that if you borrow $100 from a payday lender, you may end up paying $75 in fees and interest just to borrow the money for two weeks. This is an enormous amount of money to repay in a short period of time, especially if you’re already struggling financially.
Another reason payday loans are a bad idea is that they can easily lead to a debt cycle. Many borrowers end up taking out payday loans repeatedly because they can’t pay off the loan in full and end up needing to borrow money again just to cover the fees and interest from the previous loan. This can trap people in a cycle of debt that can be very difficult to get out of.
Interesting facts or statistics about Payday loans in Mastic Beach, New York
- Payday loans in New York have an average APR of 400%, according to a survey by the New York State Department of Financial Services.
- The state of New York has taken legal action against several payday lenders operating illegally in the state, resulting in restitution for consumers and fines for the lenders.
- The New York State Department of Financial Services provides a comprehensive list of lenders that are licensed to operate in the state, making it easy for consumers to check if a lender is authorized.
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If you’re in need of a loan, TheGuaranteedLoans may be able to help. We are a connector service, not a direct lender, and we work with a network of potential lenders to match borrowers with loan options that may be right for them.
Our online application process is simple, and you can fill out an application in minutes. If we’re able to match you with a potential lender, you may be able to get the money you need in as little as one business day.
Remember, if you’re thinking about taking out a payday loan in Mastic Beach, New York, it’s important to know that these loans are illegal in the state. However, there may be other loan options available to you that can help you get the cash you need without falling into a cycle of debt.