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Business Loan In Jackson, Pennsylvania, payday loans are prohibited. While the state doesn’t explicitly say payday loans are illegal, the interest rate cap of 6% APR effectively eliminates the possibility of payday lending. Even though payday lending is not available in Jackson, it’s still important to understand what payday loans are, why they’re problematic, and what to do when you need money quickly.
What are Payday Loans?
A payday loan is a small, short-term loan that typically comes with a high-interest rate. Payday loans are often marketed as a quick and easy way to get cash for unexpected expenses or emergencies. These loans are typically due on the borrower’s next payday, hence the name “payday loan”. In many cases, borrowers are required to provide the lender with a post-dated check or authorize the lender to withdraw funds from their bank account.
Although payday loans are attractive to people who need quick access to cash, the high fees and interest rates associated with these loans make them a dangerous, and often predatory, option. In Pennsylvania, for example, lenders can not charge interest rates above 6% APR. The high-interest rates charged by payday lenders can easily trap borrowers in a cycle of debt that’s difficult to escape.
The Problems with Payday Loans
The problems with payday loans are numerous, and they largely stem from the high fees and interest rates charged by these lenders. Here are just a few of the issues with payday loans:
- High fees and interest rates can trap borrowers in a cycle of debt: When borrowers can’t repay their loans on time, they’re often hit with high fees and additional interest charges. This can lead to a cycle of debt that’s difficult to escape, and can quickly spiral out of control.
- Payday loans are often marketed to people who can least afford them: The people most likely to need payday loans are often those who are living paycheck to paycheck and don’t have a lot of financial cushion. These individuals are the least likely to be able to afford the high interest rates and fees associated with payday loans.
- Payday loans can damage a borrower’s credit: If a borrower is unable to repay their payday loan, it can negatively impact their credit score. This can make it difficult for them to secure other forms of credit in the future.
Alternatives to Payday Loans
If you’re in Jackson, Pennsylvania and you need money quickly, there are alternatives to payday loans. Here are a few of the most common:
- Personal loans: If you have good credit, a personal loan from a bank or other financial institution may be a better option. These loans typically come with lower interest rates than payday loans, and can often be repaid over a longer period of time.
- Credit cards: While credit cards can be expensive, they’re often a better option than payday loans. If you use a credit card to pay for unexpected expenses, you’ll owe interest on the balance, but the interest rates are typically lower than what you’d be charged by a payday lender.
- Community assistance programs: Many communities have programs in place to help people who are struggling financially. These programs may offer assistance with things like rent, utilities, and other expenses.
Interesting Facts or Statistics
- The average payday loan borrower takes out 10 loans per year and spends 199 days in debt.
- The average payday loan is $375, but borrowers typically pay $520 in interest and fees.
- The payday loan industry is worth an estimated $90 billion in the United States.
Apply Now
While payday loans are not available in Jackson, Pennsylvania, TheGuaranteedLoans can still help connect you with lenders who may be able to provide you with the funds you need. We are a connector service, not a direct lender, and we work with a network of lenders who specialize in personal loans, title loans, and other types of loans. Fill out our online application today and see if you’re eligible for a loan. Our process is quick, easy, and secure.