Iowa payday loan laws are actually in the middle of the list when it comes to protecting the borrower.
While some parts are good for the borrower, the interest rates are still out of the park and they allow roll overs, which can cause serious financial hardship if you let the loan get out of hand and do not pay it up right away.
The length of a payday loan in Iowa may not exceed 31 days. The loan amount caps out at $500.00 and lenders must not exceed this amount.
While that may sound good you are allowed to have more than one payday loan as long as none of them exceed $500.00.
This is a bad set up for a payday loan trap because if you do not keep up with the first loan, the temptation to take out another to catch up with the first one is too strong to say no.
Then something else happens and you’re already in trouble with the first two, See the trap forming? The on-site interest rate Wisata Manado Terbaru is $15.00 for the first $100.00 borrowed, and $10.00 for every $100.00 borrowed during the first $100.00.
This can add up very quickly if you start rolling out these loans, and the final total return can be close to double what you borrowed.
Iowa’s payday loan laws do help to hold some expenses down a bit, but payday loans on the whole are a really bad way to raise the money you need and can come back and bite you pretty hard.