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Payday Loan Laws In Alaska
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Payday Loan Laws In Alaska

The payday loan laws in Alaska state a payday loan must be 14 days minimum with a loan limit amount of $500.00. The interest rates are 15% or the lesser of $15.00 per $100.00 plus a $5.00 fee.

Breaking this down a $500.00 loan for two weeks would cost you $80.00. Pretty good profits on a two week loan for sure!

Alaska can not take any collateral for these types of loans or engage in erroneous behavior in collecting practices or threaten any legal action against the borrower. The borrower also reserves the right to call off the loan and return the borrowed principal with no additional charges by the close of one day after the initial loan.

Lenders must make it clear to all borrowers what their practices are and what the borrowers obligations consist of.

It would seem that the spirit of the laws for payday loans in Alaska are geared twords the borrower, but then you read the interest rates they can charge, which they call fees, and it makes you wonder.

Since most payday loans are rolled over 4 times before being payed off in full, this $500.00 loan could become quite profitable for the lender.

Lets redo the math with 4 roll overs.

  • Roll over one, $80.00 with no reduction in principal
  • Roll over two, 80.00 with no reduction inprincipal
  • Roll over three, $80.00 with no reduction in pricipal.
  • Roll over four $80.00 with no reduction in principal
  • Pay off of $580.00

Grand total of your $500.00 payday loan, $900.00 so it cost you $400.00 to borrow that money through a payday loan.

Just one example of how easy it is to get caught up in the payday loan trap. Now, what if one of those direct withdrawals for the $80.00 roll over fee did not get covered at the bank.... you get where this is going.

Now you have returned check charges to the bank and loan company, plus anything else that bounced, and on and on and on.

If you are having problems with payday loan debt in Alaska or any other state you need to find a payday loan debt consolidation company fast! They can stop the harassing phone calls and high interest rates immediately, many times within a couple hours . They will set you up with low monthly payments, and get you some breathing room in your finances.

Many times you can have the whole debt payed off in 18 months. After you have discharged the payday loans, unless you can pay off the loan the first time it comes due in full, forget they exist! Even the best of intentions have a way of not tuning out the way we plan them.

Thanks for checking out the Alaska payday loan laws, and I hope this information helps you find some peace of mind in your ventures!

Please feel free to share this article and leave any comments and questions below!


Street Talk

joe witt  

Nice articles on the payday loans Shawn, people in desperate need will take chances that's for sure. More knowledge of the possible traps would maybe help, more people need to read you! :)

Reply
  about 9 years ago

I have some good info coming out as I get caught up on all the state by state laws, keep reading. Thanks!

Reply
  about 9 years ago
Dom Wells  

You are a walking encyclopedia..except you are mostly sitting down writing your knowledge !

Reply
  about 9 years ago

LOL< Thanks Dom!

Reply
  about 9 years ago
S. Gray  

I was really encouraged that Alaska is looking out for the borrower. But it turns out, it's just another trap. Great info, Shawn, thanks for sharing this!

Reply
  about 9 years ago

You bet Sonya. Wait until you read Idaho's laws, they are really for the lenders.

Reply
  about 9 years ago

Mr Shawn Lee, your article has reminded me of my school days when I read a book by the name "The Merchant of Venice" If you ever came across this book, you would remember there was a character by the name Shylock You may have to forgive me because I am not aware that he re invented himself in Alaska. Thank you very much

Reply
  about 9 years ago

I will look this book up, thanks!

Reply
  about 9 years ago

That's a Shakespeare play Geoff! I had to read it for college!!

Reply
  about 9 years ago

Surely this type of loan is illegal? Pay back $900 for a $500 loan unbelievable!

Reply
  about 9 years ago

Nope, all legal and they do it every day. That's why we are here to help.

Reply
  about 9 years ago

Gee, what a trap to get caught up in! nice info and advice.

Reply
  about 9 years ago

Thanks Lewis, it can be a real drag for sure.

Reply
  about 9 years ago
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