Payday Advance Vermont
When emergencies arise, it is a welcome relief to have the available cash at hand to handle them quickly and efficiently so that life can return to normal. However, for many people who have no savings set aside or who live from payday to payday, unexpected emergencies and situations can cause incredible stress. Not only does attention have to be given to the emergency, but also there is the extra stress of figuring out a way to come up with the money to deal with it.
Millions of Americans turn to easily obtainable payday loans for a quick means of cash to handle emergencies. However, residents of Vermont cannot obtain payday advances because they are prohibited in the state. Therefore, other sources of quick cash are needed to meet emergency situations in between paychecks for citizens of Vermont.
Payday Loans Defined
Payday loans, also known as payday advances, are short-term loans that use paychecks as collateral for small amounts of cash that are normally under $1,000. Payday cash advances are mainly used for emergency situations, but can also provide extra cash for getaways or special events.
Because payday loans are quickly repaid in a short amount of time, usually on your next scheduled payday, they are fast and easy to obtain. Payday advances require very little information, and only ask for your ID, bank account information and a verifiable source of income. Such loans are normally approved in less than 24 hours. Credit checks are also not normally done making payday loans available to practically anyone 18 years of age or older regardless of credit status.
Vermont Payday Loan Laws and Restrictions
Vermont has worked very hard to not only prohibit payday loans from being taken out in the state, but to also tie up loopholes that allow payday loan companies and online payday loan lenders to operate from outside states. There still exist ways to bypass Vermont payday loan laws, but it can be quite difficult.
Under the Small Loan Act of Vermont only approved and licensed lenders can operate in the state and they must abide by very strict guidelines. For example, the cap on the annual interest rate for small loans is set at 18 %, which is usually described as too low for payday loan lenders. These acts prevent most companies dealing in payday loans from operating in Vermont.
Alternative Sources of Extra Cash to Vermont Payday Loans
Payday advance Vermont laws make acquiring payday loans very difficult, if not completely impossible. Therefore, residents who are short on cash and require funds to handle unexpected situations will need to look for alternative methods to obtain the money they need. The following are some suggestions for acquiring money for emergencies and pressing situations.
The first place to look is with your current employer. Many companies will allow you to work overtime or will float you a cash advance to be repaid on your next paycheck or to be deducted from several subsequent paychecks. W-2s can also be adjusted to claim more dependents, which will lower the amount of taxes taken out of your paychecks.
Emergency assistance programs are another means of obtaining cash and other assistance for emergencies. You can visit your local Department of Human Resources to inquire about available programs, or turn to local churches and other organizations that provide assistance to those in need.
You might also visit your bank or credit union and request a small loan or long-term loan. A consolidation loan to lump various bills into one loan payment could be another option to discuss with your bank.
If you simply need extra cash for non-emergency situations, you can take on a side job, borrow money from friends or family, take out a title loan, or sell or pawn items. Rapid cash can also be obtained via credit card cash advances, although the interest is very high.
Vermont Financial Information
Answers to questions and other financial information concerning Vermont payday advance loans and laws can be obtained by contacting:
Vermont Banking Division
Department of Financial Regulation
89 Main Street
Montpelier, VT 05620-3101