It’s true that the application is easy and the money comes fast, but it also comes with a big cost. Interest rates and fees are often so high that you may find that, instead of helping you get out of a financial hole, payday loans can wind up sinking you further into debt until you may not be able to recover.
The good news is that if you are struggling with unmanageable debts, there are alternatives to payday loans, as well as help available to get you back on your feet financially. The seasoned and compassionate Cincinnati, Ohio, bankruptcy lawyers at Fesenmyer Cousino Weinzimmer understand what you are going through. We provide free initial consultations for people throughout the Cincinnati area who have gotten into financial difficulty. We will examine your individual situation and find the best way to guide you to debt relief. Contact us by email or call our Cincinnati office at: 877-654-5297.
Why do People Use Payday Loans?
According to a Federal Reserve Board study, more than 150 million people in the United States can’t get approved for a bank loan because their credit score is below 680. So people with bad credit history turn to payday loans because they need the funds right away and the application process is easy. For payday loans there is no credit check, no certificate of salary, no pledge of property, no explanation of why you need the money. All you need is your passport, your valid Ohio driver’s license or your U.S. military identification. An application for a short-term loan can be issued in the office, by phone or online, and you usually receive the money in one day.
Payday loans, also known as paycheck advances, are typically loans for relatively small sums, usually $1,000 or less. People taking them usually hope to be able to repay the loan in days or weeks, often when they get their next paycheck.
Downside of Payday Loans
Unfortunately, payday loans are full of disadvantages, including outrageously high interest rates, fees, and late penalties that can get you deeper into debt. Ohio has attempted to protect consumers by passing the Short-Term Loan Act (STLA) regulating interest rates and prohibiting lenders from giving out loans on the internet or on the phone. However, payday lenders get around these consumer protections by creating Credit Service Organizations, a kind of broker that adds high fees, often described as a “prepaid finance charge,” for “helping” you find the loan.
Consider the following disadvantages of payday loans:
- The cost: The finance charge for these loans is often between $10 and $30 for every $100 borrowed. If you borrow $500, that $30 charge becomes $150 in a very short time.
- High interest rates: A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400%. One web site, https://quickercash.com, which matches applicants to a large, 100+ lender network, states that APRs may be between 22.9% and 1304%, depending on the amount, cost, and term of the loan. For small amounts and shorter terms, you pay the higher end of the APR range.
- Collection Methods — If you can’t pay off your loan on time, the loan company will put the pressure on, including making harassing calls to your workplace or your family members. In addition, your lender may:
- Charge you late fees
- Send your account to a collection agency
- Report your information to a consumer reporting agency which may negatively affect your credit score
- Offer to extend your loan at additional fees, charges and interest
Cincinnati-Area Payday Loan Providers
If you are still considering taking out payday loans in Cincinnati, make sure you look for hidden fees that can drive up the cost of the loan. Read the fine print carefully; look at the loan length, interest charge and APR (annual percentage rate), and ask what the total repayment amount will be.
The following are some companies that offer payday loans in Cincinnati:
11753 Lebanon Rd., Cincinnati, OH 45241 / (513) 401-7542
5229 Madison Rd., Cincinnati, OH 45227 / (513) 909-3083
8439 Reading Rd., Cincinnati, OH 45215 / (513) 401-7596
5705 Cheviot Rd., Cincinnati, OH 45247 / (513) 401-7543
5717 Glenway Ave., Cincinnati, OH 45238 / (513) 401-7607
2. Cashland Financial Services Inc. — 11 Locations
5708 Glenway Ave., Cincinnati, OH 45238 / (513) 451-0900
3. CheckSmart — 31 Locations
7680 Montgomery Rd., Cincinnati, OH 45236 / (513) 936-9995
4. Check Exchange – 11 locations
629 Old State Route 74, Cincinnati, OH 45244 / (513) 688-0111
3288 Highland Ave., Cincinnati, OH 45213 / (513) 531-3144
01 E. 5th St., Cincinnati, OH 45202 / (513) 480-5046
7. Payday One
8044 Montgomery Rd., Cincinnati, OH 45236 / (513) 792-2237
3513 Reading Rd., Cincinnati, OH 45229 / (513) 559-0220
7755 Montgomery Rd., Ste 400, Cincinnati, OH 45236 / (888) 848-6950
5223 Glenway Ave., Cincinnati, OH 45238 / (513) 244-7134
11. Acceptance Now
4468 Eastgate Blvd., Cincinnati, OH 45245 / (513) 752-0659
6212a Glenway Ave., Cincinnati, OH 45211 / (513) 662-0200
13. Cash America Pawn – Pawn Shops & Loans – 5 locations
7671 Colerain Ave., Unit A, Cincinnati, OH 45239 / (513) 522-3900
6173 Glenway Ave., Cincinnati, OH 45211 / (513) 389-1111
15. First American Cash Advance – 7 locations
9810 Colerain Ave., Cincinnati, OH 45251 / (513) 923-9610
407 Vine St., Suite 248, Cincinnati, OH 45202 / (513) 273-4238
17. Cash Plus
7428 Montgomery Rd., Cincinnati, OH 45236 / (513) 245-2274
8088 Beechmont Ave., Cincinnati, OH 45255 / (513) 474-0622
312 Walnut St., Cincinnati, OH 45202 / (513) 201-8074
4805 Montgomery Rd., Ste. 401,Cincinnati, OH 45212 / (888) 606-0962
111 Woolper Ave., Cincinnati, OH 45220 / (513) 817-4781
2009 E. Galbraith Rd., Cincinnati, OH 45215 / (513) 453-4822
8802 Colerain Ave., Cincinnati, OH 45251 / (513) 718-2820
(888) 341-8066 / (888) 233-5205
Alternatives to Payday Loans
The following are options you may wish to consider instead of taking out a payday loan:
- Borrow from a friend or relative, or ask your employer for an advance on your paycheck.
- Contact creditors and ask for more time to pay or an alternative payment schedule.
- Get a more conventional loan, such as from a community-development credit union.
- Get assistance from local social service agencies for food, heating, and housing expenses.
- Use your credit card, but only as a last resort, as these interest rates are also high.
- Consider filing for bankruptcy. Chapter 7 or Chapter 13 bankruptcy is a way to eliminate debt and get a fresh start on the road to financial recovery. Once you file, the automatic stay provisions will prohibit many creditors and payday lenders from taking collection actions against you. When your bankruptcy discharge is complete, you will be free of debts owed to unscrupulous lenders, including your payday loans.
Contact Us For Help
If you find yourself drowning in debt and being harassed because you are unable to make payments, take the first step toward getting your life back on track by contacting the experienced and compassionate Cincinnati debt-relief attorneys at Fesenmyer Cousino Weinzimmer today for a FREE INITIAL CONSULTATION.
We know what you are going through. We will evaluate your entire financial picture by looking at your income, your debts and your goals, and we will discuss the best fit for your individual situation. We will handle every phase of the process and find what works best for you.
We have helped thousands of Ohio residents find new hope.
Delaying can only make your situation worse, so call the Cincinnati bankruptcy attorneys at Fesenmyer Cousino Weinzimmer today at one of our conveniently located office branches at 877-654-5297 (Cincinnati), 614-228-4435 (Columbus), 937-222-7472 (Dayton), or email for your free consultation.