McFarlan, North Carolina may be a small town, but like many other places in the United States, some residents may find themselves in a bind and in need of emergency cash. One option for financial relief may be payday loans. However, payday loans are prohibited in North Carolina, leaving residents in McFarlan without access to this type of short-term loan.
What are Payday Loans?
Payday loans are a type of short-term loan typically due on the borrower’s next payday. These loans are often advertised as a way for individuals to get quick cash in an emergency or if they are unable to secure a loan through traditional means.
The borrower typically writes a post-dated check to the lender, with the loan amount plus fees and interest. The lender then provides the borrower with cash, and the borrower’s check is held until their next payday. If the borrower is unable to pay back the loan on time, they may be required to pay additional fees and interest.
Payday Loans in McFarlan, North Carolina
While payday loans may seem like a quick and easy solution for those in need of emergency cash, they are prohibited in North Carolina. In fact, North Carolina was the first state to enact legislation to prevent abusive payday lending practices.
The North Carolina Commissioner of Banks notes that “North Carolina General Statutes (NCGS) 53-281 and the North Carolina Consumer Finance Act (NCGS 53-173) prohibits payday lending in North Carolina.”
These laws were put in place to protect consumers from the high fees and interest rates associated with payday loans. While it may be frustrating for individuals in McFarlan to not have access to payday loans, they do still have other options for emergency cash.
Alternative Options for Emergency Cash
One option for emergency cash in McFarlan may be a personal loan from a traditional lender, such as a bank or credit union. These loans typically have lower interest rates and longer repayment terms than payday loans, making them a more affordable option for borrowers.
Another option may be a credit card cash advance. While this may have higher interest rates than a traditional personal loan, it can still be a more affordable option than a payday loan. Additionally, borrowers can typically take out more money with a credit card cash advance than with a payday loan.
Interesting Facts and Statistics about Payday Loans in North Carolina
- North Carolina was the first state in the nation to enact legislation to stop abusive payday lending practices.
- In 2001, the North Carolina General Assembly repealed the payday lending exemption from the state’s usury laws, effectively shutting down payday lending in the state.
- Before the ban on payday loans in North Carolina, the average annual percentage rate (APR) on payday loans was around 450%, according to the Center for Responsible Lending.
Apply Now for Emergency Cash
While payday loans may be prohibited in North Carolina, TheGuaranteedLoans is here to help connect individuals in McFarlan with potential lenders for other emergency cash options. Fill out an online application today and we will work with our network of trusted lenders to find a solution that works for you.
It’s important to remember that TheGuaranteedLoans is a connector service, not a direct lender. We do not make credit decisions and we cannot guarantee loan approval or loan amount. However, we will work to connect our clients with lenders who may be able to provide them with emergency cash when they need it most.
Conclusion
While payday loans may seem like a quick solution for those in need of emergency cash, they are prohibited in North Carolina. Residents of McFarlan should explore other options, such as personal loans from traditional lenders or credit card cash advances, to avoid the high fees and interest rates associated with payday loans. TheGuaranteedLoans is here to help connect individuals with potential lenders for emergency cash options, but it’s important to carefully consider all options before taking out a loan.