These days, payday loans such are common among Americans. The shops that offer these services are everywhere including strip malls. Also, ads of payday loans are everywhere even on billboards that are strategically placed and at bus stops. However, despite the popularity of payday loans among Americans, one should be surprised why such services are being considered illegal in 15 U.S. states that include Arizona, Connecticut, Georgia, Arkansas, Maryland, New Jersey, New Hampshire, Maine, Ohio, Massachusetts, New York, North Carolina, Vermont, West Virginia, and Pennsylvania.
One is inclined to ask several questions such as: why were these services outlawed in some states? What are the other options available to people who live in these states? This article attempts to answer a few of these questions hoping that readers understand what their options are when faced with urgent financial needs in any of these states before their next paycheck.
In actual fact, many of these states do not have any law that strictly prohibits these services or refer to them as illegal. What really happens was that many of these states implement usury laws which place a limit on the interest rates money lenders can charge. The allowed interest rates are well below what could sustain the business of a payday loan Singapore thereby making it altogether undesirable to engage in the business in those states. However, in some states like Georgia, it is absolutely illegal to be involved in these services. Any violation is considered a felony and one could be prosecuted under severe laws like the racketeering legislations.
So, what are the other options for people in these states who find themselves in tough times and need some bucks as quickly as possible? Well, if you happen to live in any of these states, there are other options you could explore to get the cash you need when it matters most. The first option is to apply for a cash loan advance on your credit card. So, if the situation demands that you must have cash with you, this option is perfectly okay for you. But this option which is really the easiest option demands that you have a credit card. Therefore, for people who aren’t qualified for a credit card may be because they have a history of bad credit or they didn’t have one because of the fear of misusing borrowed funds; this option is not for them.
The possible option to people who don’t have a credit card is to ask their employers for an advance on their next paycheck. Anyone who has been in the good books of their employers shouldn’t find that hard to get when they are in dire need of urgent financial help. This is because you just have to be favored by your boss for a cash advance benefits since no employer is under any obligations to give any employees cash advance against the next paycheck.
In the event that your employer can’t help you with the cash you badly needed, the next option is to try any pawn shop within your locality. To get the cash you need via this option, you must be willing to ‘sell’’ your asset to the pawnbroker and afterward repurchase it back at an interest rate which is often lower than what is payable for a personal loan. The main risk here is that you stand the chance of losing your item if you fail to redeem the loan on time.
Written by Kevin, a Singaporean living in Arizona.