Illinois payday loan laws are set up to favor the lender, and one needs to be aware of these laws before a person takes a payday loan out.
The loan companies are allowed to write payday loans for between 13 to 45 days.
This coupled with the interest rates allowed, $15.50 per $100.00 borrowed, and the amount allowed to borrow, $1000.00 or 25% of the borrowers gross income, whichever is less, can lead to a one way trip to the payday loan trap.
A 14 day $100.00 loan comes out to an APR of 403%. This is a crazy APR and one should avoid these types of loans at all costs.
One good thing is payday loan lenders in Illinois are not allowed to write more than one loan at a time, so this does help curb the stacking of loans by any one borrower.
If you find yourself needing to use this service you must make sure you can pay this loan off in full on the first due date.
If you borrow $100.00 at $15.50 for 14 days your interest will be $155.00.
If you have to roll it over you will get hit with another $155.00 and this is how you end up in the trap.
We can help!
Are you are in need of payday loan debt help in Illinois or any other state?
Please read our payday loan repayment plan or call us at 1-877-280-5100 for more information on how we can help you get out of this crazy cycle .
Debt consolidation of payday loans is one sure way to get some sanity back into your financial situation.