Are you a resident of Rosendale, New York, and in urgent need of cash? While payday loans may seem like a viable option, it’s important to note that they are prohibited in the state of New York.
What are payday loans?
Payday loans are small, short-term loans that are designed to be repaid with the borrower’s next paycheck. They typically come with high interest rates and fees, making them a very expensive form of credit. In states where they are legal, payday loans are often marketed to individuals who have poor credit histories and may not qualify for other forms of credit.
Why are payday loans prohibited in New York?
The state of New York has deemed payday loans to be predatory lending practices, as they often lead to a cycle of debt for borrowers. The high interest rates and fees associated with payday loans can make it difficult for borrowers to repay the loan on time, leading them to roll over the loan and incur even more fees.
In 2013, the New York State Department of Financial Services (DFS) issued cease and desist letters to several online payday lenders, ordering them to stop offering payday loans to New York residents. Since then, the state has continued to crack down on payday lenders, making it illegal for any lender to offer payday loans to New York residents.
What are the alternatives to payday loans in Rosendale, New York?
If you are in need of cash, there are several alternatives to payday loans that you can consider:
- Personal Loans: Personal loans are a form of unsecured credit that can be used for a variety of purposes. They typically have lower interest rates and longer repayment terms than payday loans, making them a more affordable option for borrowers. However, personal loans may require a good credit history.
- Credit Cards: If you have a credit card, you may be able to use it to cover your emergency expenses. Credit cards often come with a cash advance feature, allowing you to borrow money against your credit limit. However, cash advances on credit cards are often subject to high interest rates and fees.
- Credit Counseling: If you’re struggling to manage your debt, credit counseling may be a good option for you. Credit counseling agencies can work with you to develop a debt management plan and negotiate with your creditors to reduce your interest rates and fees.
Interesting Statistics About Payday Loans in Rosendale, New York
- According to the Center for Responsible Lending, the average payday loan borrower in New York pays an annual interest rate of 591% on their loans.
- A study by the Pew Charitable Trusts found that the average payday loan borrower is in debt for five months out of the year, spending an average of $520 in fees to borrow $375.
- The New York State Department of Financial Services has recovered more than $12 million in restitution from payday lenders who violated the state’s lending laws since 2011.
Apply Now
Although payday loans are illegal in New York, if you are in need of cash, you can fill out an application on our website and we will connect you with potential lenders who may be able to offer you alternative forms of credit. Remember, TheGuaranteedLoans is a connector service and not a direct lender. We work with a network of lenders to try and find the best loan options for our customers.
Don’t let financial emergencies stress you out. Explore your options for alternative forms of credit, and apply now on TheGuaranteedLoans to get connected with potential lenders in Rosendale, New York.