Although you may be considering a payday loan in Pennsylvania, you may need other options
If you’re short on cash, a payday loan might have crossed your mind. Although Pennsylvania law doesn’t allow payday, there are plenty of other options you can consider. Read our guide for more.
Are payday loans legal in Pennsylvania?
No. Under 63 Penn Stat. Ann. § 2325, check cashers are prohibited from lending short-term loans.
Lending is regulated by the Consumer Discount Company Act, 7 Pa. Cons. Stat. §§ 6201 et seq. The small loan rate is capped at $9.50 per $100 in interest per year with a service charge of $1.50 per $50.
You might want to consider an installment loan
Here are some other options for residents of Pennsylvania
While you can’t get a payday loan in Pennsylvania, there are other ways to get money. Before you borrow, consider checking out state programs like Temporary Assistance to Needy Families (TANF) or Low-Income Home Energy Assistance Program (LIHEAP). These can help you pay down your normal bills while you work on getting control over your debt.
- Debt consolidation loan. If you have multiple loans out at once, you can apply for a debt consolidation loan. Rather than making multiple payments with varying interest rates, you’ll make one payment with a single, usually lower, interest rate. It should help save you money in the long run.
- Negotiate with your creditors. When you’re unable to afford a payment, consider contacting your creditors and requesting a lower monthly payment. Creditors want to get paid and will often be willing to work with you to make this happen.
- Seek credit counseling. A credit counselor can be a good way to get a handle on your debt and learn important financial skills. There are many free services out there to help so give a few a call.
While you can’t get a payday loan in Pennsylvania, you still have other options that can help you out during a financial crisis.