Payday Advance North Carolina
When it comes to needing money to pay for sudden emergencies, payday loans are a go-to sources for millions of people nationwide. The fast funds help pay for unexpected vehicle repairs, medical emergencies, home appliance malfunctions, and a host of other situations that can catch you financially unprepared.
North Carolina payday advance lenders are prohibited from operating within the state. Some online payday lenders find ways to operate in other states where payday advances are prohibited. They either abide by the set state laws or they find loopholes through which to provide payday loans. However, North Carolina payday loan laws are quite strict and lawmakers have worked to tie up any loopholes. Any in-state or online payday loan lenders must be licensed by the state, as well as adhere to state laws before they can provide payday cash advances to North Carolina residents.
North Carolina Payday Loan Laws Explained
Current North Carolina payday loan laws require a company providing payday advances to be licensed. Plus, there is an interest rate cap set at 36%. These guidelines, as well as other laws governing North Carolina payday loans, prevent most companies from providing them.
However, State Senator Jerry Tillman introduced Senate Bill 89 early in 2013 that would allow the return of payday loans to the state under specific guidelines. Under the proposed bill, North Carolina payday loan lenders could provide cash advances of up to $500 and charge a fee of 15% on every $100 borrowed. That equates to an APR amount of 300%. The high finance rates and fees are what many other senators want to keep out of the state.
To date, this bill has not passed and there appears to be strong opposition against it. If you want to obtain more information on this bill and where it stands in the legislative process, you can contact the office noted at the end of this article.
Alternative Suggestions for North Carolina Payday Loans
If you live in North Carolina and need to obtain cash quickly in order to meet some emergency or other situation requiring instant funds, then you will have to look into other sources besides North Carolina payday loans. The following are suggestions for some of the best means of receiving extra money.
You can approach your local bank or credit union for a small loan to cover emergency expenses. However, keep in mind that traditional loan payments normally last for months, if not years, which can place added pressures on your monthly budget. Therefore, if you decide to go this route, it may be best to a make as quick of a payoff on the loan as you can.
You might also take out a cash advance on one or more credit cards. However, interest rates are substantially higher for credit card cash advances than with normal purchases, which can get you into financial trouble. Again, if you must go this route, seek to pay the amount off as soon as possible.
Another means for quick cash for emergencies is to go through available emergency hardship programs. Local humanitarian organizations as well as governmental programs can be used to meet needs if you are eligible under their individual guidelines.
Your employer is another source to turn to in difficult financial times. Some employers will provide cash advances, which are then deducted from your next or subsequent paychecks. This is a similar approach to payday advance North Carolina loan only without the high rates of interest and fees. You might also be able to work overtime if available, or you can claim more dependents on your W-2, which will reduce the amount of taxes deducted from your paychecks.
You can also apply for a title loan, work a side job, consolidate bills to free up more cash, and request money from friends or family.
Information on North Carolina Payday Loan Laws
If you have questions or need more information on North Carolina payday loan laws or other state financial guidelines, contact the following office.
North Carolina Attorney General
9001 Mail Service Center
Raleigh, NC 27699-9001