According to a recent study, single women take out payday loans more often in Arkansas. Thousands of Arkansas residents are faced with the problem of lack of money to pay for utility bills, medication, education, and 70 percent of them are women.
Why do people prefer payday loans?
This year, single mothers in Arkansas who are divorced or on maternity leave take out online payday loans in Arkansas for urgent needs, medicine or diapers more often than in the previous year. The main reasons why people prefer this product are relaxed eligibility criteria and same-day funding. Besides, the entire process takes place online and there is no paperwork involved. Payday lenders accept 94% of applications and transfer funds as quickly as possible. You can spend the money for whatever needs: debt consolidation, wedding, vacation, a large purpose, car repair, home improvement, etc. Loan amounts typically do not exceed $1,000 and lending periods vary from several days to one month. Keep in mind that each city in Arkansas has its lenders, rates and terms. For example, there are 19 legit lenders who provide payday loans in Springdale AR and 11 lenders that are licensed to issue payday loans Little Rock AR. Follow the mentioned links to find out their ratings and read user reviews. The pages also contains a convenient online calculator which can be used to make an informative decision.
Although the average credit score in Arkansas is good (690), many borrowers find it difficult to repay their loans and take out new loans to meet their obligations, However, this is not a good idea because this may put borrowers in a debt trap. “According to the statistics of requests, we see that each applicant has at least two and a maximum of 10 short-term loans,” financial experts said.
According to researchers, women recognize the debt problem more quickly and try to solve it by seeking legal assistance. While men pay “enslaving interest” on loans, or ignore the problem until the release of the executive letter, which entails such consequences as withholding of wages, seizure of accounts, a ban on leaving, and so on.
Most of the requests come from residents of large cities: Little Rock, Springdale, Fayetteville, Fort Smith, Jonesboro, Rogers, North Little Rock, Conway, Bentonville, Pine Bluff, Hot Springs, Benton, which is associated with a higher level of information literacy.
Residents of small towns or provinces apply for online payday less often (McCrory, Mulberry, Monette, Hazen, Decatur, Rector, Judsonia, Lepanto, Tuckerman) because after receiving online loans ad finding difficulty repaying them and threats from collectors, they are afraid to take any action remotely.
“We are very concerned about the data we received. Short-term loan debts hit the most vulnerable segment of the population in Arkansas – single mothers and maternity wives, who are charged up to 2000 percent per annum on small amounts of the principal debt. We urge such businesses to show social responsibility, meet clients halfway and solve the problem immediately, in a pre-trial order,” financial experts said.
They also called mediation one of the alternative forms of resolving disputes of this nature, when a third (neutral) party is involved in resolving the issue.