Payday loans are a handy way to get money fast when it is needed, but people in Georgia can no longer take advantage of the easy cash. There are 19 states in the U.S. that do not allow payday lending in it’s most common form, and Georgia has been one of those states since the Payday Lending Act of 2004 went into effect. According to this act, charging in excess of 60 percent interest on loans under $3,000 is a felony, and this amount of interest and more is typical with most payday loans. Georgia residents who need fast cash are now forced to seek out other options.
Alternatives to Payday Loans in Georgia
Even though payday loans aren’t available in Georgia in the same way they were before, there are still some alternatives, including unsecured loans for bad credit. Instant decision loans are also available for people who can’t wait to find out if they can get the cash they need. These loans might not be as handy and convenient as payday loans, but Georgia residents who need money with poor credit will be happy to know they exist. Many payday loan businesses in Georgia have switched to offering bad credit loans at interest rates below 60 percent so that they can stay open in spite of the changes resulting from the Payday Lending Act.
Downside to Payday Loan Alternatives in Georgia
Payday loan alternatives work differently than Georgia payday loans did before the Payday Lending Act. Even with bad credit loans, there’s no guarantee of approval. Just having a job isn’t enough, and credit that
is really terrible could always mean that a loan won’t go through no matter what. Another disadvantage of bad credit loans in Georgia is that even if loans are approved, processing time could take a while. Sometimes people don’t get their money for up to a few weeks after approval. This could be very problematic for people in the midst of pressing financial emergencies. Fortunately, bad credit loans in Georgia still don’t normally come with absurdly high amounts of interest, and this is an advantage that even the quickest payday loan can’t really compete with.
Georgia Residents Might Be Better Off Without Payday Loans
Residents in search of payday loans in Georgia might be better off not being able to get them. According to a story covered by ABC 13 in Toledo, OH, consumers who take out these loans are doing nothing more than making their financial situations worse, even though it may appear that they are improving matters in the short-term. Many payday lenders charge as much as $25 in interest on every $100 borrowed. A person who borrows $300 might have to pay back $375. That extra $75 might have to be covered by taking out yet another loan. It’s a vicious cycle that many consumers can’t seem to free themselves from. Lenders operating these types of business in Georgia were probably disgruntled when the new laws were passed, but the average person in Georgia might be much better off that the Georgia payday loan no longer exists. However, non-payday cash loans for people with terrible credit are still out there for people who need money urgently.
Category: Payday loans