Payday Loans in Shawanese, Pennsylvania

Payday Loans in Shawanese, Pennsylvania: What You Need to Know

Payday loans are short-term loans that typically come with high-interest rates. These loans are often used by people who need quick cash for unexpected expenses, such as medical bills, car repairs or home repairs. However, payday loans are prohibited in Pennsylvania, including in Shawanese. In this article, we will cover everything you need to know about payday loans in Shawanese, Pennsylvania and the alternatives you can consider.

Payday Loans Are Prohibited in Pennsylvania

In 2010, the Pennsylvania Legislature passed a law that prohibited payday lenders from operating in the state. The law was designed to protect consumers from the high-interest rates and fees associated with payday loans. Under Pennsylvania law, payday lenders cannot charge more than 6% annual interest on a loan. This law effectively makes payday lending illegal in the state.

However, some payday lenders still try to operate in Pennsylvania by offering online loans. These lenders may use out-of-state banks to issue the loans, but they are still required to follow Pennsylvania’s lending laws.

The Risks of Payday Loans

Payday loans come with significant risks, including high-interest rates and fees. According to the Consumer Financial Protection Bureau (CFPB), the average payday loan carries an annual percentage rate (APR) of about 400%. This means that if you borrow $500, you could end up paying back more than $1,000 due to interest and fees.

Additionally, many payday lenders require borrowers to provide them with access to their bank accounts. This can lead to overdraft fees and other problems if the lender tries to withdraw money from the borrower’s account when it is empty.

Alternatives to Payday Loans in Shawanese, Pennsylvania

If you need quick cash to cover unexpected expenses, there are several alternatives to payday loans that you can consider. These include:

• Credit Union Loans: Many credit unions offer small, short-term loans to their members. These loans typically have lower interest rates than payday loans and more favorable repayment terms.
• Personal Loans: You can apply for a personal loan from a bank, credit union or online lender. Personal loans typically have lower interest rates than payday loans and longer repayment terms.
• Credit Card Cash Advances: If you have a credit card with available credit, you can take a cash advance. However, cash advances typically come with high-interest rates and fees, so you should only consider this option if you can pay the balance off quickly.
• Government Assistance Programs: If you are struggling to pay bills, you may qualify for government assistance programs, such as the Low-Income Home Energy Assistance Program (LIHEAP) and the Supplemental Nutrition Assistance Program (SNAP).

Facts and Statistics About Payday Loans in Shawanese, Pennsylvania

While payday loans are prohibited in Pennsylvania, it is still important to know the facts and statistics surrounding these loans.

• In Pennsylvania, 12 million payday loans were issued in 2016 before the law changed. These loans carried an average APR of 212%.
• Payday loans trap consumers in a cycle of debt. According to the CFPB, about 80% of payday loans are rolled over or renewed within two weeks.
• The average payday loan borrower takes out eight loans a year, spending an average of $520 on interest and fees to borrow $375.

TheGuaranteedLoans – Your Online Connection to Potential Lenders

If you are considering a payday loan alternative like a personal loan, TheGuaranteedLoans can help. We are a connector service, not a direct lender, which means we work with a network of potential lenders to help you find the loan that best fits your needs.

Applying for a loan through TheGuaranteedLoans is simple and efficient. Our online application process takes just a few minutes, and you can receive a loan decision in as little as 2-3 business days. Plus, we protect your personal information with the latest encryption technology to ensure your privacy and security.

The Bottom Line

Payday loans are prohibited in Pennsylvania, including in Shawanese. While these loans may offer quick cash, they come with significant risks and can trap borrowers in a cycle of debt. If you need quick cash, consider alternative options like credit union loans, personal loans, credit card cash advances or government assistance programs. And if you need help finding a loan that fits your needs, TheGuaranteedLoans is here to help.

Apply now for an online personal loan through TheGuaranteedLoans and get the cash you need to cover unexpected expenses.