Nebraska Payday Loan Educational Resource
Unexpected expenses are a fact of life. Cars break down, homes need repairs, kids need to visit the doctor, and bills need to be paid. Unfortunately, no matter how carefully you budget, sometimes something can go wrong and you just won't have enough cash to pay the bills. In many cases, these unfortunate events seem to happen when your paycheck is days or weeks away and when you need some short - term fast cash to get you through.
One financial loan product that exists specifically to provide this short - term cash is called the payday loan. Payday loans have a bad reputation among financial experts, which is well deserved. There are some really serious downsides to taking on a payday loan and you should never take such a loan without understanding those downsides. Yet, despite all the downsides, payday loans provide a unique solution to a financial problem where no other solution may exist.
Payday loans are unique for a few reasons. One, they are easy to qualify for. Normally, your credit score is determinative of whether you are going to be able to borrow money. Unfortunately, this means if you have a checkered past when it comes to paying your debts, lenders are not going to want to give you another loan. Payday loans are structured differently, though, and your credit does not matter. As long as you have a bank account and a job, you can get a payday loan.
Payday loans are also unique because you can get a quick loan. You don't have to wait a long time to submit an application, have your claim reviewed by loan officers, and then get sent a credit card or cash. Instead, you can walk in to a lender, have your information reviewed right away and get your money very quickly. You can then go and use that cash to meet your pressing and immediate expense.
Finally, the last major unique benefit of payday loans is that you can get them for just a short period of time. If you need a payday loan to get you through until payday, you may not need months or years to pay back the loan. You can borrow a small amount of money and pay it back with your next paycheck, which can perfectly meet your needs if you just require a little bit of help to meet an immediate cost.
All of these factors are the good things about payday loans. The bad thing is the cost. You pay a high fee to borrow which, when expressed in terms of the annual percentage rate, can exceed 450 percent. This makes it hugely expensive to borrow using a payday loan and you are going to have to pay back the fee when you repay the loan.
Due to the fees, you should make sure that you take a payday loan only in situations where you really need the money and where the expense cannot wait.
Payday Loan Laws in Nebraska
To help protect the public because of the high costs of Nebraska fast cash loans the state has imposed certain limitations. The rules for these types of loans can be found in Neb. Stat. Ann. Section 45 - 901.
According to state laws, you cannot borrow more than $500 in a payday loan, but you are allowed to have two outstanding loans out at one time. The term of the payday loan also cannot exceed 34 days. Lenders are not permitted to charge a fee for extending the terms of the loan and there are no rollovers permitted.
Fast cash Nebraska lenders are also restricted in regards to how much they can charge customers. Under the law, a lender can charge you $15 for every $100 that you borrow. This means that if you borrow $100 and you pay it back within two weeks, you will have an effective APR of 459 percent.
Staying Educated on Nebraska Payday Loan Laws
The caps on fees and on maximum loan amounts are both designed to keep you from getting into serious trouble with payday loans. However, you need to remember that ultimately you are responsible for your own financial choices. You need to be aware of the laws and policies in place when it comes to payday loans and you need to make an informed choice about how best to proceed when entering into any financial transaction.