The amount of payday loans you can have in Louisiana doesn’t seem to be regulated. This means you could have multiple payday loans at once, but that could be very costly and risky.
Louisiana is one of the states that does allow payday lending. They also don’t have very many laws to regulate the payday lending industry. The current laws they have in place state that the maximum amount you can borrow from a payday lender is $350, and they can charge you up to 391% APR. This is an extremely high APR. Louisiana law also states that the maximum loan term is 30 days.
With an APR this high, and only 30 days to repay the principal and interest, payday loans in Louisiana can be very risky for borrowers. Many borrowers who resort to payday loans don’t have very many options due to low credit scores and low income. Traditional bank loans cater to good-credit borrowers. Many low-credit borrowers can’t even get approved for a credit card. In an emergency situation these borrowers turn to payday loans. But with terms and costs like these, they may end up in more financial trouble.
If you live in Louisiana and you’re in need of quick cash, make sure you explore all of your options. If you can avoid taking out a payday loan, you should. Some borrowers turn to friends or family members. Some choose to find a credit union that they can join which may work with them despite poor credit. And some may explore installment loan options.
An installment loan is one popular alternative to costly payday loans. Personal installment loans usually offer more money and longer repayment periods than your typical payday loan. Depending on the lender, you may be able to repay your installment loan over the course of several months or even a couple of years. Plus, you don’t need great credit to be approved in most cases.