Alabama is the state of the United States which is located in South-East and also known as Cotton State. It is very economical for living due to the low tax rate and competitive prices of houses. But still, the poverty rate in this state is around 16.6% because there is no law for minimum wage and also not all employees are permitted to work extra time (more than 40 hours).
If you are the citizen of Alabama, then situations of financial crises may occur due to the above reasons. In such a case, it’s too difficult to manage your budget if some urgency happens. Then the option left is to borrow money either from family or from licensed lenders or banks.
It depends on your condition and requirements because what if you don’t have anything to put as collateral or you are borrowing the first time so no credit scores are there? As traditional loans require proper documentation with good credit scores and take a bit long time for the approval.
Don’t take stress at all. There is one option still left if you have a bad credit history or nothing to put as security and that is “Payday Loan”. Around 1,070 payday loan lenders are there in the state and on average basis $320 is the amount of loan, people borrow.
Payday loans, in other words, Instant loans or Advance cash loans can help you to get cash very quickly (within a day) that is why it’s also known as an emergency loan. For this loan, every state has its laws as same Alabama has. Along with physical stores, online lenders are also available in the state.
payday loans alabama
Here is the detail of a few rules of Payday loans: Maximum you can borrow $500 with the repayment time of 10 days to not more than 31 days. As per the law, APR (Annual Percentage Rate) is also fixed to 456% with some advance charges of 17.5% per $100. But if you get out of your due date then 3% per month would be charged.
List of charges of payday loans in Alabama:
APR: In Alabama, APR is 206.05% for 30 days and for 24 days you need to pay a maximum of 456.25% for per $100.
Loan extension fee: Only one time you can take an extension for your loan but fees would be charged and that would be approximately $30.
Advance Refunding: If you want to refund money before your due date then that would be free. No charges would be deducted for early refunding.
If in case, you can’t refund your debt on a paycheck date then? Only once you can refinance your loan. It would be charged up to $30 as an NSF means Non-sufficient Fees. In case, even after roll-over if you can’t pay then your lender can offer you some repayment plan which includes installments in around 4 months. Where you need to pay your whole debt in 4 months.
You need to ask all these queries to your lender before your application which will be supportive to make a thought for taking a loan.
- This loan can make you out of the worst situation if every door is close to you.
- A payday loan is a measure for low- and average-income netizens.
- The lender can provide you various repayment offers if you are a frequent borrower.
To fill the loan application, you must follow a few things such as:
- Your age must not be less than 19 years
- Your job must be constant or earnings must be stable
- You must be a citizen of the United State
Information that you need to provide while applying for the loan:
- Id proof (which includes your name, address, gender)
- Social Security Number
- Details of your bank account
- Your contact information (Phone number and e-mail)
If you fulfill all the requirements and submit the documents which are required then you may get approval within 10-15 minutes. Also, if you want to refund debt early then you can do that without any extra fees according to the law of Alabama.
Few factors are there which you must give a thought to before making any decision to apply for payday loan:
Payday loans are very helpful while urgency and can make you stress-free for that time. As it doesn’t need any credit check or any security but on the cost of these things, it charges a very high-interest rate (APR of 456%) which can make you more stressed if in case you default your due date of payment written on a paycheck. It will charge extra fees for that and can make your condition more awkward. So before making your final decision, you must think if there is any substitute option before opting for this one.
Knowledge about the trap of debt:
In Alabama, there are ample cases where people couldn’t refund their debt on time due to a high rate of interest. And around 50% of fees are collected from payday loans annually.
People get trapped in the cycle of debt when they get failed to refund the first time. Hence, they need to pay the loan amount along with extra charges.
And this process continues.
How you can save yourself to get trapped?
- Before applying for a loan, you must calculate the estimated amount you need to repay. With this, you can make your schedule how much you can save from where.
- Saving money by not waste it on unusual things like eating out or shopping can save you from the trap.
- You can do some extra work for extra earning to pay that loan on time.
- Also, Alabama law state that if the term extended to 30 days then APR would be 220%
So, if there would be more secure laws made for the people of Alabama related to the APR then the condition can change in a more better way. It will inspire Alabamians to get stable financially.