A payday loan provides small amounts of cash to consumers for very short periods at high costs. These loans are available in most states. But some U.S. States prohibit these types of loans, both in-person and online. So, in those jurisdictions, the limit is zero. In states that do allow them, the maximum amount you can get on a payday loan ranges from $300 to $50,000—or in two states, there’s no limit at all.
Payday Loan Limit Amounts Across the Nation
For these short-term, high-cost loans, the maximum amounts vary. Texas sets the lowest limits at $100 and $200—subject to their jurisdictional laws. California and Montana are on the lower end with $300 limits, while Louisiana and Minnesota follow closely with a $350 maximum. Delaware, Illinois, Ohio, and Idaho are in the higher range at $1,000. Note that Illinois sets various stipulations regarding their maximums. But Oregon tops the set-limit list at $50,000.
Outliers Maine, Wisconsin, Wyoming, and Utah have no limit at all, and Nevada restricts the loan amount to 25% of the consumer’s gross monthly income. The rest of the states set a median maximum of around $500—some a bit more and some a bit less.
If you live in the following states or D.C., you cannot get a payday loan in any amount:
1. West Virginia
2. Washington D.C.
3. Vermont
4. Pennsylvania
5. North Carolina
6. New York
7. New Mexico
8. New Jersey
9. Massachusetts
10. Maryland
11. Georgia
12. Connecticut
13. Arkansas
14. Arizona
Unwelcome Payday Loan Terms and Costs
Payday loans are risky, and they appeal to consumers who are already in a shaky financial situation. Excessive fees, high interest rates, punitive rollover costs, short payback periods, and strict repayment options all combine to send consumers into seemingly unending payday loan debt cycles. These problems reoccur no matter how high or how low your payday loan amount is initially.
One driving reason for this is the number of payday loan borrowers who are forced to renew their original loan.The Consumer Federal Protection Bureau (CFPB) found that 80% of these loans are rolled over. Financial setbacks and the non-affordability of the loan terms and costs lead to this high rate of loan extensions.
Payday Loan Relief
Consumers who’ve fallen prey to the payday loan scheme usually find themselves in a debt spiral before long; their financial situation is worse than it was before they secured these costly loans to bail them out of a financial quagmire.
At Progressive Debt Relief, we’re committed to helping people who’ve borrowed from payday loan companies again and again, rolling over their loans and falling deeper and deeper into debt. Contact us to schedule a free consultation and learn how we may be able to help get you out of debt for good.
