Fortunately for most people in Heber Springs, payday loans are illegal in Arkansas. These lenders are typically found in the areas of highest poverty and pray on low-income people by providing them with small amounts of cash but charging them exorbitant fees. According to Got Your Back Arkansas, all of the brick-and-mortar lenders in the state have been shut down, but that doesn’t mean that Arkansans can’t still fall prey to lenders on the Internet.
It was likely due to the high fees that payday lenders charge that Arkansas shut down lenders in the state. It is no surprise that individuals who use payday lenders can very quickly find themselves in serious need of debt relief, and if they don’t get it, they could be paying considerably for a relatively small loan.
The fees that an individual could pay for his or her payday loan are shocking and could be as high as 574 percent in some states. Since Arkansas does not have any physical payday lenders, Arkansans who use Internet-based lenders could be paying a wide range of fees.
Though the fees themselves are oppressive, the true problem arises when an individual cannot pay back the loan in time and is forced to take out a second loan to pay the first. This creates cycles of debt that can quickly lead to serious financial instability.
When people find themselves trapped by debt, it is always wise to consult an experienced debt relief attorney to explore what options are available. Ultimately, it is important to find debt relief, if only for the mental health benefit of escaping oppressive financial burdens.
Source: Business Insider, “6 Outrageous Facts That Show How Payday Lenders Screw Consumers,” Hayley Peterson, Oct. 25, 2013