By Shawn Martin
The payday loan laws in Indiana are anything but borrower friendly and care should be used in this state when dealing with payday loans.
The first red flag is the interest rates.
Payday loan companies are allowed to charge 15% on loans up to $250.00,13% from $251.00 to $400.00 and 10% on $410.00 to $500.00. The loan cap per payday loan is $500.00.
These kinds of rates add up fast and are extremely high. For example, on a 14 day $100.00 loan the APR is 390%.
The second red flag to watch out for is the loan amount allowed. While the loan may not exceed $500.00 the law does allow the lender to borrow you the whole amount of your paycheck as long as it does not exceed $500.00
This will not leave much left for repayment of the loan and is just plain crazy.
The path down the payday loan trap becomes real easy under these terms, and before you know it you are in serious financial trouble.
One other point to remember is Indiana payday loans are to be a minimum of 14 days.
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Please check out our payday loan repayment plan or call us at 1-877-280-5100 for a free quote and to find out how we can help you eliminate payday loan debt!!