The Delaware state payday loan laws are another example of perfect bait for the payday loan trap. They define payday loans under the small loans law in Delaware, thus allowing the lending companies to charge any interest rate the borrower will agree to pay.
This is an open ticket to being taken advantage of. Because the state allows payday loans to be taken out for up to 60 days at a time,and the average payday loan is 2 weeks, that leaves room for the borrower to roll this loan over up to 3 times. This is a very spendy trap to find yourself in.
The loan limit in the state of Delaware is $500.00 per loan, and of course you may take as many loans out as you feel you need.
What better set up for too many roll overs, the possibility of not being able to keep up with the loan, thus needing to get another one to cover the first, and on and on. Next the check they present to the bank is bouncing and now you have bank charges adding up to go along with the payday loan. It can become too much to deal with rather quickly.
Not a pretty sight, and very much defined as the payday loan trap. These loans should come with a disclosure form everyone must read and sign that states the loan must be paid in full on the first due date period. This is the only way a payday loan should be set up but this is not a perfect world and we do make mistakes.
There is help available. If the phone is ringing off the hook, you are getting letters saying you will be taken to court, and the loan just keeps growing and growing due to the insane interest rates, take a deep breath and do some research on a payday loan debt consolidation company .
make sure you choose one that has your best interests in mind. look for one that will not hold your money over two weeks and can set you up on low monthly payments so you have money left every payday for silly things like food, power and rent. You can have some peace of mind as soon as today!
I hope this information on the payday loan laws of Delaware will help you make wise decisions in you financial situation and if you need help I hope I have given you a solution.
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