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Joyce Marter is a licensed psychotherapist with 25 years of experience and entrepreneur who founded and successfully sold Urban Balance, a national outpatient mental health company in the U.S. Marter is an adjunct professor at Northwestern University, international speaker, blogger for Psychology Today and mental health thought-leader specializing in the psychology of money.
An emergency payday loan is one of the helpful options, especially when you need cash assistance. These inexpensive, short-term loans are intended to cover your expenses until your next payday. But each state has its laws governing payday lending. That implies that different places have different laws and rules.
Payday loans in Arizona are governed by the Department of Financial Institutions. Here is a summary of what the state permits.
Arizona’s payday lending regulations went out of effect in 2010. Since then, all loans made in the state have been required to adhere to the Arizona Revised Statute (ARS) 6-632.
Small loans are restricted under this law, and for loans up to $3,000, the highest permitted interest rate is 36%. You cannot obtain a payday loan in Arizona due to the 400% interest rate for these loans.\
To circumvent state restrictions, some individuals have applied for payday loans online or through another state. Unfortunately, it’s not always legal to do this. Consumers are cautioned by the Federal Trade Commission (FTC) to avoid fraudulent online payday loans.
Some lenders assert that by operating overseas or on Native American reservations, they can avoid state restrictions. However, they are still required to abide by Arizona law and hold a license to do business there even if they are situated in another state or on tribal ground.
And any loan you take out from a business that ought to have a license in the state but doesn’t, following the Arizona Department of Financial Institutions, is void. Accordingly, unlicensed agents are not permitted to collect or hold onto any funds or fees associated with illegal lending.
Therefore, you cannot simply obtain a payday loan online or look for one outside of Arizona to get around the tight regulations.
Payday loans are frequently perceived as a form of predatory lending. That’s because they usually target people with low incomes who might not have the resources to pay back the loan.
Additionally, these loans have hefty fees and interest rates that may keep debtors in a debt cycle. Unfortunately, Arizona’s lawmakers share their criticism of payday loans.
Because of this, tight restrictions on payday loans were put in place in 2010. The intention was to defend consumers from the predatory lending tactics that certain dishonest lenders employed.
Since payday loans are not available in Arizona, you may be considering other options to receive fast money to get you out of a jam. Here are a few of the top alternatives to payday loans.
Compared to payday loans, these loans often offer lower interest rates. Additionally, you’ll typically have more time to repay the debt, even though the approval process could take longer than a rapid payday loan.
For an online personal loan, you can apply as usual through John Thomas Financial. We’ll discover the finest small-loans lender for you based on your needs and financial circumstances rather than pairing you with a payday loan lender. If you accept the loan terms, we will then put you in touch with the lender so you may finalize your loan application.
Getting a cash advance from your credit card company is one choice, and this is authorized in Arizona and offers a lower interest rate than a typical payday loan.
But keep in mind that interest will still be charged on the owed amount. Some cards additionally impose fees for cash advances. To be sure you are making the right choice for yourself, always read the tiny print before disbursing the funds.
If you own your automobile, you might be able to use it as collateral for a title loan. With this loan, you can often borrow more money than you might with a payday loan. The payments are typically smaller and easier to handle because they are spaced out over time and secured by collateral.
Keep in mind that you risk losing your car if you default on the loan. Therefore, before signing on the dotted line, make sure you can afford the installments.
The best course of action is always to rely on someone you know who is ready and able to lend you money. In most cases, fees and hefty interest rates are avoided. However, if you don’t repay the loan, your relationship might be at stake.
Arizona residents who require payday loans are out of luck, and this is so because the state forbids granting loans with interest rates higher than 36%. However, John Thomas Financial does collaborate with Arizonan lenders to provide small personal loans with interest rates that are at or below the legal limit. And to find out how much you can get, apply with us right away.