Nowadays, it seems that many people in the United States find it very hard to deal with their monthly bills. Hardworking Americans are forced to cut as much of their spendings as they can and even then, paying the bills can still be a tough job to do. And while struggling with the regular monthly bills is hard enough, there are also times when emergency expenses occur. In such times, the faster you deal with the problem, the easier it will be. When handling an emergency expense, time is really of the essence.
However, there are many people who simply do not have enough funds to be able to cope with such situations and therefore they need financial assistance. While borrowing some money from friends and family can be a viable option, for others, the only way to afford their bills is by taking out a loan. The loan lending industry offers lots of different loans that borrowers can choose from. Probably the most popular type of short-term loans out there is payday loans. Payday loans, however, are not legal in all states and so for some people, it may be hard or even impossible to get one. Below, we will look at what a payday loan is and is payday loan lending legal in the state of New Hampshire.
New Hampshire is one of the smallest states in the country. To be exact, it is the fifth smallest state in the United States and is also the country’s fifth least-populated state. The economy of the state is based on its agriculture. That includes the production of nursery stock, cattle, apples, and dairy products. New Hampshire also relies on the state’s tourism income as well as the manufacturing of machinery, electrical equipment, rubber and plastic products. In 2015, the total state product of the state was $67 billion. Its unemployment rate was 2.6%.
What are payday loans?
Payday loans are the most popular short-term type of loans. They are also known as cash advances. With payday loans, the borrower takes out a small sum of money which he then must usually repay by his next payday. Since payday loans are small-sum, short-term loans by nature, a payday loan is only up to $500. The standard loan period for a payday loan that does not exceed $500 is 14 days. Payday loans have extremely high interest rates and so they can potentially be very dangerous for borrowers that are not able to repay their payday loans on the due date. This is why payday loans should be used as a last resort measure to deal with certain emergency expenses. Despite their high interest rates and fees, payday loans do offer some highly attractive features which we will discuss.
New Hampshire Payday Loans Laws
Payday loan lending in New Hampshire is restricted according to the N.H. Rev. Stat. Ann. 399-A:1 et seq law. The state’s payday loan law regulations impose some really strict limitations regarding the interest rates and fees to protect borrowers from falling into debt cycles and prevent loan lending companies from violating their customer’s rights by gaining substantial profit with high rate and fees charges. According to New Hampshire payday loan laws, every borrower is allowed to have no more than a single outstanding loan at the same time. If a borrower is trying to take out another loan from a different payday loan lending company while he still has not repaid his current loan, the action is considered illegal and can cause problems both for the borrower and the loan lending company.
In New Hampshire, according to payday loan regulations, a borrower is not allowed to take out a loan that exceeds $500. The annual percentage rate for a payday loan in New Hampshire is capped at 36% and no payday loan lender can charge more than that. The financial charges a payday loan lending company can charge in New Hampshire are restricted and cannot exceed $1.38 for a two-weeks $100 payday loan. This includes all approval and processing fees. The repayment period of any payday loan in New Hampshire must not be less than a week and it cannot surpass 31 days.
In New Hampshire, there is a law regarding a loan’s cooling-off period, by which a person is allowed to apply for another loan only if 60 days of the full repayment of his previous loan have passed. With that being said, however, renewals and rollovers in New Hampshire for payday loans are forbidden. Borrowers can take out another payday loan from one payday loan lending company after the full repayment of the previous loan.
Payday loans benefits in the state of New Hampshire
While they can be pretty dangerous, payday loans have their advantages that attract many borrowers.
- Unlike with most standard loans, payday loans are often available even to borrowers with bad credit score.
- The service is extremely fast as usually, the whole application process takes minutes after which you receive the money by the end of the following business day
- Once you get your cash, you are free to use it however you see fit
- Payday loans give you both the options to apply at a lender’s physical store and online from the comfort of your couch
Cities in the state of New Hampshire where you can find payday loan lenders
In New Hampshire, payday loans are regulated in a way that protects the borrowers from falling into a debt cycle. However, that does not mean that you should be reckless with the use of such service. If you are thinking about getting a payday loan, make sure you able to repay it on time to avoid unwanted events.