Payday loans are the worst type of credit line wherein you borrow less and pay more in the long run.
Real life scenario: In texas, a borrower had to pay above $810 to get rid of a $500 payday loan and he said - “I’ll go broke if I ever do that again”.
Unfortunately yes. Payday loans are legal in texas. In fact, the popularity of pdls has increased a lot in the last 10 years. The demand has increased and simultaneously the number of lenders has also risen.
You should be mentally prepared to pay above $600 for a $300 payday loan. The sad part is, fees are increasing in the last few years. The result is loud and clear. People are getting into debt trap.
You can get a detailed report from the Financial Services Activity Reports
Strong advocators of payday loans say that it is a lifeline for the people in need for cash. But, the reality is totally different. The lenders basically play with the money of the poor and make them beggars in Texas.
Payday loan consolidation in Texas is a viable solution when you want to club multiple loans into a single monthly payment.
Payday loan settlement is a good option when you want to pay only a fraction of the overall amount.
You can pay off the pdl in 4 equal installments. This option is given by many legal payday loan companies in Texas.
Extended payment plan
How many payday loans can I have in Texas?
There is no cap on the number of payday loans you can have in Texas. This is a complete disaster since borrowers often take out new loans to pay back their previous loans. They get hooked to several loans, pay compound interest and end up making a serious damage to their wallets.
How to get rid of payday loans in Texas
Texas residents will be able to get rid of payday loans only when the state bans this business. Many states such as as Massachusetts, Maryland, North Carolina have already banned payday loan business. Only time will tell when the state government will take this step and bring payday loan relief in Texas.
Can you consolidate payday loans in Austin (Texas)?
You can consolidate payday loans anywhere in Texas. It doesn’t matter if you’ve borrowed a loan from Austin or Houston or Dallas. There is only one advice for you and that is try to work with a company that is well aware of the state payday loan laws.
What about the payday loan rates in Texas?
Payday loan rates in Texas are quite high. Typically, borrowers have to pay almost 22% interest rate for a loan term of 14 days. This means, if anyone borrows $500 for 14 days, then he/she has to pay $110 on interest.
The problem doesn’t end here. Texas payday loan lenders impose finance charges as well, wherein there is no rate cap. It doesn’t specify the maximum rate they can charge. The consequence: lenders can charge any rate on a loan that has been rolled over.
What payday loans are legal in Texas?
Both storefront and online payday loans are legal in Texas. If you really have to take out an online pdl, then review the website properly. Find out if they’re located in Texas. If not, then stay away from the company.