Payday loans are not available in Georgia because they are currently illegal. Every state has their own specific laws and regulations regarding loans. Some states ban payday lending altogether—like Georgia—and some choose to regulate interest rates, loan amounts, or repayment periods.
If you live in Georgia and you’re in need of a payday loan, there may be other options. While payday loans might seem like a fast solution to financial problems, they can often lead to more trouble than they’re worth. This is due to high interest rates and short repayment periods.
If you’re not familiar with payday loans, the first thing you should know is that they tend to have extremely high interest rates. This is because many of the borrowers who need them have low credit scores. This is an indication to the lender that they may not be very trustworthy with money. Because the lender is taking on more risk, they raise their costs and the interest rates end up being higher than traditional loans.
The other reason they are risky is the short repayment periods. Usually, payday loans need to be repaid within only a couple of weeks. This makes it very difficult to come up with the principal and interest, and many borrowers aren’t able to pay it off on time. When borrowers can’t repay on time, the lender might offer to rollover the loan for a new term. This means extending the repayment period, while also adding more fees and interest. Rolling over a payday loan can lead to a difficult cycle of debt for many borrowers.
If you’re in need of quick cash, consider all of your options before choosing a payday loan. Borrow funds from a friend or family member, talk to someone at a credit union to see if they can work with you, or even consider a personal installment loan for longer repayment periods and lower interest rates. No matter which option you choose, always be sure to read the loan agreement carefully, and do plenty of research before signing on the dotted line.