Georgia Payday Loans: Reasons for Abolishing

by Anita Vasquez

Today, Georgia is one of the many states in the America which has abolished and prohibited payday loans. If you think that you might need payday loans in the future, do not live in Georgia. You will never be able to find Georgia payday loans now. Payday loans can be very helpful to people who are in dire need of money to get them through until the next payday. They can be the salvation for people who need money urgently.

However, payday loans are frowned upon today. This is because of the fact that payday loans are very notorious for high interest rates and terms which are only favorable to the lender and not the borrower. Payday loans started appearing in 1920. Today, payday loans are small loans which are unsecured. However, the amount of money you can get from it is very limited. The usual maximum amount is only $1,000. The terms are short and it is only usually 14 days. Payday loans are also regulated by the government and it is a loan which has laws governing it.

These instant approval unsecured loans have a lot of disadvantages although it can help people who are in dire need of money. Payday loans are more expensive than other types of loans. It is crucial that a borrower settle the loan on or before the maturity date. Most people do not know that the annual percentage rate of payday loans is about 400 percent and that is indeed a very big amount compared to other loans. It is also not uncommon to find payday loans with interest rates as high as 5,000 percent. A lot of payday loan companies are also very deceptive. They do not disclose all the information to customers.

A lot of people find it very difficult to get out of payday loans legally because there are so many loopholes. If somebody you know says “I need 3000 dollars fast”, warn them about the possible problems they can face with unsecured signature loans.