California Payday Loans Have Low Interest Rates

By: Brent Barnhart
California Payday Loan Regulations Mandate Lower Interest Rates

Payday loans can deal a crushing blow to those who don’t handle them properly. It’s not uncommon for borrowers to get stuck in an endless cycle of debt or legal trouble due to how they fumble their repayment process. Such problems could easily be prevented with a bit of education and familiarity with the laws behind cash advances. Those seeking payday loans in California, for example, should consider themselves lucky due to the state’s low interest rates. In addition, there are multiple means of protection for those California residents suffering at the hands of debt collectors and lawsuits. With some education on the law, one can free themselves from the burden of debt and pay off their payday loans in an efficient manner.

Drowning in debt because of a California cash advance? You probably have options that you aren’t even aware of. Lenders will often begin their barrage of phone calls and letters demanding for payment if you decide to default on your loan. While the threats may be daunting, they can be brought to a halt, although it requires you to do more than just stop answering your phone. A proper cease and desist letter to the agency should stop the threats, FDCPA law states that writing to a company legally requires them to stop bothering you through calls and letters. It’s possible that a lender may decide to sue you, although this is relatively uncommon. In that case, you’ll most likely have to go to attorney.

Rather than focus on potential consequences, it’d probably be to your benefit to figure out the best way to realistically repay your loan. In regards to payday loans, California isn’t a bad place to be. California interest rates for such loans are low in relation to other states; meanwhile state regulations on the rates themselves keep them from being obscene. Lenders may attempt to charge more than the state permits, and in such cases you can take your own legal action against them. There are both government and consumer advocate agencies that can help you out.

As is the case with all payday loans regardless of location, one’s best bet is to pay off their loans as quickly as realistically possible. Be responsible and only borrow and repay what you can afford. California payday loans may have lower interest rates, but still make sure to be diligent in regards to how you handle your repayment process.