If you’re considering a payday loan in New Jersey, you may have to look elsewhere
When you’re down on your luck and in the middle of a financial crisis, a payday loan may seem appealing. Unfortunately, New Jersey usury law caps the interest rate at 30% and bans check cashing services from advancing money. If you need quick cash, our guide will give you other options to consider.
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.
If you’re getting any kind of a consumer loan in New Jersey, the Consumer Loan Act as per the New Jersey Revised Statutes 17:1 et seq. applies. The interest rate is as agreed upon in the contract, and it can’t be over 30%. Keep in mind that if you choose to apply for any kind of loan or line of credit, it’s very important read all the paperwork (including all the fine print) before signing anything. Always have a solid plan to pay back your loan so you don’t find yourself needing to borrow more money to repay debt.
Installment loans you can apply for
If you have poor or bad credit, you might consider applying for an installment loan. They are legal in New Jersey, but finding one might be a challenge because of the interest rate cap. Providers take your current financial situation and your ability to repay into account when you apply.
What other options do I have in New Jersey?
If you have consistent financial troubles and need a loan, you might want to consider other loan and non-loan options.
New Jersey has an Energey Assitance program and a Food Stamps program that can help you afford your everyday bills while you pay down your debt. In addition, you could also try some of the options below:
- 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 does a traditional loan cost in New Jersey?
All loans cost money, but since New Jersey law caps interest for all small consumer loans at 30%, you won’t have to worry about the loan being too costly. Unfortunatley, it’s impossible to guage 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, there are plenty of other options you can consider to get money quickly and without much hassle. No matter what you settle on, be sure you can pay it back before the due date to avoid further digging yourself into a cycle of debt.