Everything You Need to Know About Payday Loans in Lewisville, Pennsylvania
Payday loans, also known as cash advances, are small, short-term loans that are typically due on the borrower’s next payday. These loans are usually marketed to people who have unexpected expenses or who are living paycheck to paycheck. However, payday loans are illegal in Pennsylvania, including Lewisville. In this article, we’ll discuss why payday loans are illegal in Pennsylvania and what alternatives are available to residents of Lewisville.
Why Are Payday Loans Prohibited in Pennsylvania?
In 2010, the Pennsylvania legislature passed the Pennsylvania Credit Services Organization Act, which effectively banned payday loans in the state. The law limits the amount of interest and fees that lenders can charge on consumer loans, making it unprofitable for payday lenders to operate in the state. Additionally, the law requires lenders to obtain a license from the Pennsylvania Department of Banking in order to offer consumer loans. No payday lender has been able to obtain the required license, effectively prohibiting payday loans in Pennsylvania.
What Are the Alternatives to Payday Loans in Lewisville?
While payday loans are illegal in Lewisville and Pennsylvania, there are still several alternatives available to those who need emergency cash.
Credit Counseling
Credit counseling agencies can help people who are in debt and struggling to make ends meet. These organizations offer free or low-cost financial advice, debt management plans, and other resources to help people get back on their feet.
Personal Loans
Personal loans are another option for people who need money quickly. Personal loans are typically offered by banks, credit unions, and online lenders. These loans have longer repayment terms than payday loans and may have lower interest rates, making them a more affordable option for many borrowers.
Credit Cards
Credit cards can also offer a way to borrow money in emergency situations. While credit card interest rates can be high, they are often lower than payday loan rates, making them a better choice for many borrowers. Additionally, credit cards offer the flexibility to pay back the debt over time, rather than in a lump sum on the borrower’s next payday.
Interesting Facts About Payday Loans in Lewisville
- Payday loans have an average APR of 400%
- The average payday loan borrower is in debt for five months out of the year
- Payday loans are prohibited in 14 states, including Pennsylvania
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Please note that TheGuaranteedLoans is not a direct lender. We are a connector service, and we do not make credit decisions or provide funds directly to borrowers. Instead, we facilitate the connection between borrowers and potential lenders.
Conclusion
While payday loans are prohibited in Pennsylvania, including Lewisville, there are still many alternatives available to those who need emergency cash. From credit counseling to personal loans and credit cards, there are many options for borrowers to consider. At TheGuaranteedLoans, we’re committed to connecting you with trusted lenders who can offer the loan options that best meet your needs. To get started, fill out our online application today.