Payday loans can be a quick and easy solution when you need cash urgently. But in Oakland Gardens, New York, payday loans are prohibited.
Despite being banned, residents of Oakland Gardens may still search for payday loans online. While they may find lenders willing to offer payday loans, it’s essential to note that they are not legal in New York. If you live in Oakland Gardens and are considering taking out a payday loan, here is what you need to know.
What are payday loans?
Payday loans are short-term loans made for small amounts. They are usually due in two weeks, and borrowers must repay the loan amount plus a high annual percentage rate (APR). In some cases, borrowers may roll over the loan, extending the repayment term and incurring even higher fees and interest rates.
In many states, payday loans are legal, but not in New York. New York has strict regulations and caps on interest rates for loans, and payday loans are deemed illegal.
Why are payday loans illegal in New York?
The State of New York’s Department of Financial Services (DFS) warns against payday lending, calling it “illegal and predatory.” The DFS says that lenders who offer such loans engage in exploitative practices and may subject borrowers to high fees and interest rates.
What are the alternatives to payday loans in Oakland Gardens?
Although payday loans are not a viable option for Oaklands Garden residents, several alternatives can offer better terms and rates. Here are some:
Personal Loans
Personal loans are the best option when you need money urgently. Personal loans for emergency situations are generally available in Oakland Gardens by various banks and online lenders, often offering better rates and terms than payday loans. ACU and North Shore Lending are financial institutions in Oakland Gardens that offer competitive rates on personal loans.
Credit Unions
Credit unions are not-for-profit institutions that offer affordable loans and other financial products to their members. Credit unions offer members access to low-interest unsecured loans, making them a good alternative to payday loans.
Friends and Family
If you’re facing an emergency situation, it’s worth turning to friends and family for help before going for a payday loan. Borrowing from friends or family members is often interest-free and can prevent the burden of high-interest rates and fees.
Credit Counseling Services
When you’re struggling to make payments or are in debt, credit counseling is the best option you can consider. Credit counseling services can help you create a budget and debt payoff plan.
Stats on payday loans in New York
- New York prohibits payday loans with an APR above 25 percent.
- 12 million Americans take out payday loans each year.
- Payday lenders in New York have charged APRs up to 1,900 percent.
- Payday loans trap consumers in debt cycles, usually taking out 10 loans per year.
Apply Now
If you’re looking for quick cash, don’t consider payday loans. Remember, they are illegal in Oaklands Garden and carry high APRs and fees that can easily trap you in a debt cycle. Instead, consider the alternatives listed above.
If you’re ready to apply for a personal loan, visit us at TheGuaranteedLoans. As a lender connector service, we offer an easy way for you to connect with online lenders who offer personal loans. Tap “Apply Now” and fill out our application form, and you’ll be on your way to finding a personal loan that can offer better terms than payday loans. We offer a convenient and hassle-free way of connecting with potential lenders, and the process can be completed quickly online. Remember, we are not a direct lender and do not make decisions on loan approvals. Our primary goal is to connect you with the best online lenders and help you get the financial assistance you need.