Loans in Louisiana (LA)

The Basics of Payday Loans and Installment Loans Louisiana

When someone mentions the Wild West, they probably imagine crops, cowboys, and boots. Granted, Louisiana is no longer a “wild state” – it’s actually pretty modern and beautiful, packed with amazing landscape and state-of-art buildings.

However, what people don’t know is that Louisiana is currently one of the poorest states of the US – with the general poverty rate going above 20%. Not only does this make it difficult for people to bring food on the table – but it also pushes them to get indebted. When the situation is dire, some payday loans and installment loans in Louisiana can be very helpful.

How Payday Loans and Installment Loans Louisiana Work

Payday loans are named like this mainly because they need to be paid back by payday. Unless it is an installment loan (which can be paid back in several installments), this kind of loan usually takes two weeks to pay back.

This is what makes Louisiana ​bad credit loans and installment loans different from your regular bank loan.

• The amounts are smaller: Generally speaking, short term loans are limited – and the amounts borrowed go from $300 to $1,000. With Louisiana’s average income, however, the most common borrowed amount is $400 – or even less.
• The terms are shorter: Unless you are specifically applying for an installment loan, payday loans have to be paid back when you get your next paycheck. It can be in a week or two – or it can be in a month. It will all depend on your paycheck arrangements.
• There aren’t any installments: Once more, unless you are applying for an installment loan, there aren’t any installments to deal with. You borrow the money and then you pay it back, all in one go, once you get your paycheck.
• The interest rate is high: When you take out a loan from a bank, the interest rate is calculated based on your credit score. With online payday loans and installment loans in LA, your credit score is irrelevant – mainly because you are considered a risk from the very beginning. It is also why the interest rate is so high.

Technically speaking, a payday loan is a short-term solution to a short-term problem – so it might not work with any long-term issues.

How to Get a Payday Loan

Getting a Louisiana payday loan same day is relatively easy – which is why so many people prefer this option. First of all, you have to find a direct lender and do careful research. Different lenders offer different interest rates – so you might want to be extra careful.

Make sure that you are clear on the deadline and whether there are any installmentsor not. Depending on your choice, you might have to pay more in interest. Once the details have been resolved, you will fill in the application and generally receive the money right away.

Be sure that you always make your payment on time to avoid penalty fees and damage to your credit score. Plus, never borrow more than you can afford. This will cause you to borrow again to cover the other loan – sending you into an endless cycle of debt.