Out of fifty states payday loan debt in South Dakota comes in the second costliest!
That means there is only one other state in the union that has a higher interest rate than South Dakota for their payday loans and that state is Idaho.
How does your state rank and is there anything a person can do to fight back against these companies and their crazy interest rates?
Let’s take a look at the reasons for these rates and what a consumer can do to fight back!
Why Are rates So High?
There are two main reasons why the loan companies can charge such a high interest rate and the first reason really creates the second one.
Let me explain.
The payday loan companies spend huge amounts of money on lobbyists who work hand in hand with politicians making sure the laws favor their companies.
By doing this they can really write their own regulations, and those regulations always favor the companies, not the borrowers.
This leads to the second reason they can charge such high rates.They have no resistance when they set the rules, thus they take advantage of people who are in need.
They have no resistance from the government due to their lobbying efforts so when the rules are written they are in control of what those rules dictate. thus they take advantage of people who are in need of short term money and can not get it anyplace else.
Thus they can take advantage of people who are in need of short term money and can not get it anyplace else.
Some states are fighting back and rewriting laws and even outright banning payday loans completely.
While this is always a good thing it may be too little too late for many who are caught in the payday loan trap and these companies often ignore individual state laws completely with their online stores.
Still, some states like New York are fighting back and even prosecuting companies that violate the new laws they are creating and many senators are calling for a nationwide system to make all payday loans accountable to one agency.
I am ALready Trapped!
If you are already trapped in payday loan debt take a deep breath and let me assure you that help is available and only a minute away!
Give us a call at 1-877-280-5100 or fill out our free quote form and we will show you how to get out of that payday loan trap today!
If you are not trapped and thinking of using these services please take a look at our article on how to use safely take out a payday loan.
While payday loans can be used safely they can also put you in serious debt in very little time.
Sometimes we need to get money fast and while this is a viable option one must be informed and cautious when using them.
I hope this article helps in understanding the risks and benefits of payday loans and how to safely use them!
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