Out of the 50 states that make up the United States, 23 of them have some sort of regulatory laws regarding payday loans. Unfortunately, the dangers of Louisiana payday loans are due to no regulatory laws at all, and borrowers need to be informed.
Because these companies are allowed to pretty much run the short term loan business any way they wish, the following are the results that borrowers in this state can look forward to:
- $270.00 in fees for a one-time $100.00 loan. Yes, you read that right.
- Interest rates in the neighborhood of 780%. Most credit cards can reach 25%
- Relentless collection efforts on defaulted loans
They are everywhere
There are currently over 1000 storefronts in Louisiana where a customer can take out a payday loan, and the numbers are increasing. In comparison that would be 4 payday loan stores to 1 McDonald’s restaurant.
Payday loan lenders have collected over 200 million in fees in Louisiana in the last year, and much of those fees end up out of state. These fees are coming from people who are living one pay check away from being broke, and it is a safe bet most of them will need to roll over their loans, thus getting caught in the age old payday loan trap. We just want our readers to be aware of the issues.
Break the cycle
Take care in this state when using these companies. If you must use them make sure you pay the loan back in full on the first due date to avoid any additional fees and payments, and if you are already caught in the payday loan trap break the cycle now!
There are alternatives for paying back payday loan debt without all that interest, and we urge people to explore those alternatives.
When you’re looking to borrow money, be sure to check out all of your options so you know what your rights and what you’re getting into. Many credit unions are now offering short term loans at around 18%. This is a much better option than 780%
As always we are here to help you in any way we can. Please let us know if we can assist you today.
