State law means you won’t be able to borrow from a payday lender.
New Jersey usury law caps the interest rate at 30% and bans check cashing services from advancing money. But that doesn’t mean you’re out of options. There are multiple payday loan alternatives available to residents of New Jersey.
Are payday loans legal in New Jersey?
No. New Jersey Revised Statutes 17:15A-47 states that a check cashing licensee can’t advance money or cash a postdated check. The Consumer Loan Act, New Jersey Revised Statutes 17:1 et seq., also keeps payday lenders out of New Jersey. It sets the maximum APR for a loan at 30%. With these two regulations in place, payday loans are effectively banned in the state.
Compare installment loan options in New Jersey
What other options do I have in New Jersey?
New Jersey has a number of social services you may be eligible for if you’re in a difficult financial situation:
- WorkFirst NJ General Assistance (WFNJ/GA)
- WorkFirst NJ Temporary Assistance for Needy Families (WFNJ/TANF)
- Supportive Assistance to Individuals and Families (SAIF) program
- Emergency Assistance (EA)
- End Hunger NJ
- Low Income Home Energy Assistance Program (LIHEAP)
- NJ SNAP
- Transportation assistance
- Supplemental Work Support
Are there any other short-term options in Massachusetts?
If you have consistent financial troubles and need a loan, you might want to consider other loan and non-loan options, including:
- Debt consolidation loans. If you have multiple small loans out at once and are having trouble keeping up with all the payments, a debt consolidation loan may be a good idea. Your interest will likely be significantly reduced and you’ll only have one monthly bill.
- Get a side job.If you have the time, a little extra work will put money in your pocket without costing you a cent. It might not be the most fun option, but when you’re working on paying down debt, a second job can make a big difference in your income.
- Try credit counseling. There are many nonprofits out there that can help you with your budget. When you’re constantly having trouble making payments, professional advice can help you get on the right footing.
How much do other loans cost in New Jersey?
New Jersey law caps interest for all small consumer loans at 30%. Unfortunately, it’s impossible to gauge how much a loan will cost without knowing the details of your credit and the requirements of the lender. Even a small difference in interest rate percentage can have a significant effect on the total amount you end up paying.
Some general fees you might be charged include application fees and loan disbursement fees. Go through your loan’s contract to determine how much the total will be–principal plus interest–and to determine how much a possible late payment will cost you.
While you can’t get a payday loan in New Jersey, there are other options you can consider if you need help supplementing your budget or are facing an emergency. And provided your lender follows New Jersey’s usury laws, you may qualify for an installment loan or other short-term lending option to help make ends meet.