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Compare your loan options in Vermont
Vermont prohibits most short-term lending, but there are other options if you're facing an emergency.
If you’re looking for money to cover a short-term expense, Vermont has plenty of resources that could be less costly than some payday loan alternatives.
Can I get a payday loan in Vermont?
No, payday lending is prohibited in Vermont. Vermont Statutes Ann. tit. 9 § 41a, the small loans act, applies to all small loan lenders in the state. It states that lenders must abide by a strict 18% APR cap.
In addition, 8 V.S.A.§ 2519(a)(13) states that lenders aren’t permitted to hold checks for future deposits. This means a lender can’t cash or advance money — whether it’s a physical check or an ACH transfer from your bank account. And while some lenders use loopholes in Vermont law to provide online payday loans, Vermont is taking steps to prevent this in the future.
Compare installment loan options in Vermont
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What other options do I have if I need extra money in Vermont?
Programs like Medicaid, SNAP and other federal programs can make it easier for you afford your everyday bills while you work on paying down your debt. In addition, Vermont has a variety of programs to give a helping hand to Vermonters in need:
- 3SquaresVT
- Child Care Financial Assistance Program
- Essential Person Program
- Fuel Assistance / Crisis Fuel Assistance
- Emergency Assistance
- Farm To Family
- Individual Career Advancement Network (ICAN)
- Individual Development Account (IDA)
- Reach Up / Child-Only Reach Up
- Weatherization Program
Are there any other short-term options in Vermont?
You may want to consider some of these alternative credit options or browse our full list of payday loan alternatives for more information.
- Consider a credit card cash advance. If you have a credit card and haven’t met the credit limit, you can take out an advance on the remaining amount. While this is an expensive option, you have more time to pay it off than with a payday loan.
- Negotiate with your creditors. If you can’t afford to make payments on your debts, you should talk to your creditors and negotiate a lower payment. Many will be willing to adjust how much or how frequently you pay off your debt to make it more affordable for you.
- Find a credit counselor. This isn’t a quick fix, but it can help you learn how to budget and control your finances. A credit counselor can teach you ways to avoid needing something like a payday loan in the future, which will lower your debt in the long run.
What costs can I expect with a loan in Vermont?
Vermont caps small loan interest at 18%, but you may be required to pay origination fees and other charges for a loan. Because of the variety of lenders out there, we can’t say the exact costs of a loan. You’ll need to read over your loan contract very carefully before deciding. Remember, if you don’t like the terms of a loan offer, you can always choose to reject it.
Bottom line
Vermont may prohibit payday loans, but there are still some lenders that offer installment loans — as long as they abide by the interest rate cap. But if you’re stuck in a bad financial situation, you may want to consider credit counseling or one of the alternatives listed above before you take on more debt.
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