Payday Loans Arizona
Arizona, a state that is located south-west part of America and that is the 6th largest state of the country. The economy of the state relies on various work zones but the major ones are transportation, health & medical care, and all the outstanding government areas. There are many state laws related to financial help that was designed and then changed by founding the people getting trapped. Yes, payday loans were there till 2010 but after the expiration of this law, it was prohibited by the state legislatures like a few other states. Actually, a law passed that the loans which charge APR of above 36% will be banned and it includes payday loans as well.
Though this doesn’t mean after the ban of payday loans, all the lenders have to close their businesses but they have started providing some other product to the consumer such as ‘Flex loan’ which is very similar to payday loans but businessmen have found the loophole of the law by offering this loan. It consists of several other charges for monthly maintenance, sending statements of bills, transaction fees, and many other, that is how the actual APR will remain under 36% but these surplus charges makes the tripple-digit cost for the interest. This law of flex loan was passed in 2015 which had brought the life of payday loans back to the lives of Arizona people.
How rapid cash Arizona loan works exactly?
The working of these loans is simple but costlier than payday loans, though it attracts the consumer by hiding the other details and also it works like a credit card. Mainly for the people who can’t are not eligible for those bank credit cards. These are not renewable and you can stay in debt unless you’re able to pay at least the minimum amount of the loan every month. To clear the debt in this flex loan is slightly more difficult than payday loans due to the above reason.
As per the reports of the southwest center for Economic Integrity, that in flex loan, a person can be in debt for a few years. Such as if you borrow $600 with monthly payment of $25, which will take approx. 3 years to clear the debt and the charges on this loan would be around $1900 to $2000 on the amount of $500, which is so high as compared to actual payday loans.
Loan for bad creditors in Arizona
As per Jason Rose, an Industry lawyer who stated that flex loans can become a lifesaver for the people who left with no other option and require money instantly as the banks don’t entertain borrowers with low credits, that too unsecured. To support this statement, Steve Montenegro, Republican representative, said that you can’t assume that the people with a bad credit history will make bad decisions always.
Though, it is possible that flex loans can create the need for another loan or to repeat one again exactly like payday loan las vegas rollovers, which can continue to keep into debt for so long. In fact, some people who were opposing this loan said that this can’t be done in this way as it’s economic bondage.
As a resident of Arizona, you must be aware and careful about these predatory businesses which still continue even after the prohibition of payday loans. Hence, awareness is a must as flex loans can take you into deep debt. So, before choosing it, you must search for the other options such as to borrow some money from friends or can ask for an advance salary to your boss, it’s better than to pay heavy interest.
Is there any other short-term choice possible in Arizona?
Yes, there are few such programs that you can consider in emergencies. Some of them are the following:
- Arizona Health Care Cost Containment System
- Commodity Senior Food Program
- Cash Assistance
- Low Income Energy Assistance Program
- Supplemental Nutrition Assistance Program
- Child Care Assistance
Don’t make a mistake by thinking that payday loans are banned in the state so there are no predatory loans. In fact, there are more dangerous and difficult repaying loans that’s why always choose them when you don’t have any choice.