The Colorado state payday loan laws are similar to other states that look out for the lender rather than the borrower. You may take out a payday loan in Colorado for up to 40 days and they offer you the option to turn it into a six month plan, which can really get expensive at the interest rates they charge.

The interest rates are 20% of the first $300.00 borrowed, and 7.5% of the excess of the $300.00. Here come some more fees. They can charge a $75.00 origination fee and another monthly fee of 7.5% of $100.00 loaned, or $30.00.

With fees like this it is easy to see how they make their money. The longer you keep your loan, the more they make, in large amounts at that.

The amount limit of a payday loan in Colorado is $500.00

These laws are definitley not set up to protect you, the customer, but just the opposite, to take your hard earned money in over inflated frees and interest rates.

Colorado makes it easy to get caught in the payday loan trap, and it can bury you at an alarming rate of speed. Before you know it the fees add up to help devour your whole paycheck. Signing up for the six month plan at these rates will break the average person long before the 6 months are up.

Pretty soon you are borrowing more money from friends and relatives to cover the fees for borrowing the payday loan., do not pay on the principal, and all of a sudden your loan is in default. Vicious cycle for sure!

If you find yourself in trouble with payday loan debt in Colorado or any other state and need help sorting it all out, I suggest checking out a payday loan debt consolidation company. There are many out there and some are good and some are not so good.

Make sure you choose one that does not hold your money for up to three months before they start paying your loan company, Many do but there are a few that are on the up and up and really are there to help you. They can stop the phone calls, put the interest in check, and set you up on bi-weekly or monthly payments and open up that check a bit!

I hope reading the state of Colorado payday loan laws helps you become more informed on how payday loan laws are written in the Colorado.

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