Diggin in on Arizona Payday Loans
Financial emergencies can happen to anyone. Sometimes, you need cash fast, but your next paycheck may still be many days away. With a payday loan, you can get approved in minutes, get the cash you need instantly, and take care of whatever financial emergency it is that you are facing. All you have to do is write a post-dated check to the lender for the amount of the loan plus any fees and interest charges, and you can get your cash on the spot. The lender will deposit the check on the agreed upon date, which will be your next payday.
There are many positive aspects to payday loans, the most important of which are speed and convenience. The ability to get cash on the spot or to have it instantly deposited in your checking account can certainly come in handy when you are in a tough spot financially.
However, there are some drawbacks to these types of cash advance loans. The biggest issue is the high interest rates and fees attached to payday loans. Because the term length of these loans is so short, the compounded fees can work out to astronomical APRs. For example, if you take out a 14-day loan for $100 with fees and finance charges of 17.5%, that would work out to an APR of over 450%.
Because of this, financial experts are always telling consumers to be very careful about applying for these short-term cash advance loans. The allure of fast cash can be very strong and addictive, but if you are not careful, you could end up digging yourself into a deeper financial pit.
Payday Loan Laws in Arizona
Across the country, the payday loan industry is thriving. Americans take out billions of dollars each year in these short-term loans, and payday loan stores and websites are seemingly everywhere you look. As a matter of fact, there are an estimated 20,000 payday storefronts across America.
However, you will not find Arizona fast cash loan stores as they are currently banned in Arizona. As of July 1, 2010, payday loans are completely banned across the state. Now, it is illegal for companies to display payday loan signs, to advertise payday loans, and to provide these short-term cash advance loans.
Currently, the payday loan ban is enforced strictly by the Arizona Attorney General's Office. Consumer loans with an annual interest rate in excess of 36% are now considered unlawful anywhere in the state of Arizona.
Today, payday loan proponents are still fighting aggressively to reinstate payday loans in Arizona. With recent tough economic times, proponents have been pushing for increased access to cash resources.
At one time, the payday loan industry flourished in the state. In fact, there were nearly 650 cash advance stores in Arizona at the industry's peak.
When payday loans were allowed in Arizona, many consumers took advantage of them. An article in The Arizona Republic actually referred to "Arizonans' almost insatiable need for quick, short-term loans," evidence that at one time, payday loans were quite popular in the state.
Stay Educated about Payday Loans
While fast cash Arizona loans are currently banned, it is still important that you stay educated about this method of lending. Laws are always changing, and there are many who are fighting to bring payday lending back, so should it ever return, it is important that you properly understand its benefits and drawbacks.
While payday loans can have very high interest rates and fees, they can also be quite helpful when used for the proper purpose. Sometimes, financial emergencies arise that require fast cash. In such situations, having access to payday lending really can be helpful in a financial bind. But it is important that you never take out such a loan lightly and that you do not make a habit of relying on payday loans to get you by.