October 25th, 2012 by Shawn Martin
The State Of Colorado Payday Loan Laws are a bit different from other states.
You are only allowed to have one loan at a time and the maximum duration of the loan is 40 days unless the loan is turned into a 6-month loan.
The loan limits are $500.00 and the interest rates are a bit different also.
20% of the first $300.00, then 7.5% in excess of $300.00.
Lenders can still charge a $75.00 origination fee as well as monthly fees of up to $30.00, or 7.5% per $100.00 loaned.
The average borrower will refinance an average loan 5 times before paying off the principal, which leads to huge interest and fee charges.
Many borrowers are in desperate need of money and do not use Payday loans as they were intended, a two-week short-term cash advance that needs to be paid in full at the end of the two week period.
They instead let it either default or roll over where permitted, and get hit with default charges and overdrafts and on and on.
In other words, they get caught in the Payday Loan Trap!
We can help!
If you have found yourself caught in this trap in Colorado, or any other state we can help you.
You are not alone. Please check out our Payday Loan Repayment Plan and find out how we can help you get some relief from this trap today, and help you take back your paycheck!