Oklahoma And Payday Loans Go Hand In Hand!

oklahoma and payday loans

We are reviewing the top five states with the most payday loans and at number five it seems Oklahoma and payday loans go hand in hand!

Many people may look at this list and think that it is a bad thing to be at or close to the top but that is not necessarily true and we will explain why we think this way in this article.

We will also take a look at why Oklahoma is number five and what it means for the people who live in this state.

Find out how we can help you with out of control payday loan in any state!

The List

There is an agency called the Consumer Financial Protection Agency (CFPA for short) that monitors all kinds of banking actions and rules and it also keeps track of the markets.

In 2018 Oklahoma came up number five on their list of states with the most payday loans issued per capita and we thought we would take a look at the top 5 and see why they each made the list and today’s article features Oklahoma.

They also do reports on markets and keep track of laws and regulations and even consumer complaints on businesses in the lending field and they also report who has the most payday loans in their states.

Why did Oklahoma make the top 5?

top 5

The simple answer is because they wrote the fifth most payday loans out of the 36 states that still allow these loans to be written, but the answer goes much deeper than that.

There are several reasons for the numbers here with the biggest one being this state has more people than most living from paycheck to paycheck and do not qualify for conventional loans.

Oklahoma, which sits at 1 in 8 residents is double the amount of loans per resident than the average of 1 in 20 in the rest of the country.

Another big reason 1 in 8 people in Oklahoma use these loan services is the lack of strongly written laws protecting the consumers against predatory lending.

By allowing more than one loan at a time this increases the amount of loans significantly and also raises the likelihood of the borrower getting behind, which in turn leads to more loans, to the tune of borrowers in this sate will take out on average 10 of these loans every year.

Even one more contributing factor is the number of lenders that are doing business in this state. When the lending laws are friendly towards the borrowers this creates a very user-friendly environment which draws in more and more lending companies.

Now these numbers seem pretty negative and we agree when the borrower gets in too deeply these loans live up to their nicknames of preditory loans but we did say earlier in this article that the use of these loans was not always a bad thing!

Let us explain what we mean by this!

When a payday loan becomes a good loan

green check

There are times when a person simply needs to find some emergency money and his or her only hope is getting an advance loan.

The reasons can range from saving your job or even getting life saving medication for themselves or a loved one and yes, even paying a fine and staying out of jail, the list can be long.

Now these loans are going to have a high cost and must be paid in full on the first due date period but if the borrower can afford the payment and does not for any reason ever extend one of these loans they are relatively harmless.

What gives these loans a bad reputation is when the borrowers keep extending them and only paying the interest owed each payday and people will do this, on average up to 8 times for every loan they take out!

This adds up to a terrible cycle called the payday loan trap.

This activity must be avoided at all costs!

Just pay the loan off in full on the first due date and there will be no more threat of any harm from the loan, it will be satisfied. It is that simple, but people have a way of making things less than simple and we understand, all of us here have been on both sides of the fence ourselves!

Summary

Even with being in the top 5 in states that allow payday loans it is not all bad news if a borrower uses these loans in the right way, they still must be called preditory and can destroy lives if they get out of hand, and they are set up to do just that.

We hope this article helps you understand the dangers of these loans and if you must use them how to limit the risks substantially.

8 thoughts on “Oklahoma And Payday Loans Go Hand In Hand!”

  1. Hey Shawn! This was some interesting facts about payday loans. I never considered getting one but I think it would be a good option when someone is hit with an emergency. I can see how it can become a trap though. It’s like you’re robbing Peter to pay Paul so there needs to be some sort of balance where you borrow some money but not your entire paycheck. Do you know which state is #1 for payday loans? I’m also interested to know where North Carolina falls.

    1. Hi, Marlinda!

      Texas has the most payday loans taken out at any given time and North Carolina is about mid-pack on the list of states that allow payday loans.

      They are a safe option but only if you use them properly.

      You can check out how to safely use them by reading our article: How To Use Payday Loans

      Thanks for stopping by and know we are here if you ever need our services!

      Shawn>>

  2. That’s wild, I know payday loans in Virginia seem pretty big but I’ve never really researched the topic. I’ve never personally opted for a payday loan because there’s always been a bad aura surrounding them (at least where I’m from) but you did make a good point to really pay attention to what you are doing and knowing what you’re getting into before signing the dotted line. Interest rates can be brutal! Probably won’t get a payday loan anytime soon but I appreciate the well researched and thought out article! 

    1. Hi, Corey!

      I am happy to hear you want to stay away from these loans but do know situations can change in a moment and having knowledge of how they work will be good knowledge to have!

      Shawn>>

  3. Awesome post. I find it interesting Oklahoma wrote the fifth most payday loans out of 36 states. As you said, the lack of strongly written laws protecting us consumers is a large topic in and of itself. I agree that there are times when a person has to find emergency money, and their only hope to get an advance loan. Medication was the first thing that popped into my head when I saw that. 

    I also find it interesting the reason you stated that lloans receive a bad reputation in the first place. This is all so eye opening! Thank you for giving all these details, it has made me think. I look forward to reading more content by you in the future! 

    1. Hi, Koda and thanks for stopping by!

      These loans can serve a purpose safely but a person needs to be fully aware of what they are getting into BEFORE they sign on the dotted line!

      If you start extending them before you know it you are so far in debt and you become desperate!

      Thanks for taking a look at our article and if you or anyone you may know ever need help please feel free to give us a shout!

      Shawn>>

  4. I think you are adding real value to anyone who needs to pay off a loan or debt.  I love that you demonstrate the simplicity involved in taking charge and feeling empowered when it comes to money that someone may owe.  I think that there is power in simplicity and approaching this kind of topic with the clear and manageable tips and insights would put anyone who is aiming to decrease or manage their loans and debts in a space of empowerment will benefit exponentially from the value you have offered in your post here.  Nice job!

    1. Hi, Bex!

      I agree with you, the more knowledge the better!

      If a person can go into these loans loaded with what they need to know their success rate will triple!

      Shawn>>

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