There is good news for people who need payday loan debt help in Missouri.
The Missouri Senate gave its approval on a bill that would eliminate roll overs of payday loans and cap interest rates charged.
This new law is just another of many being pushed for and passed around the country as people are getting tired of being taken advantage of by these loan companies.
The Senate passed the bill by a 26-4 vote, and this will now become law.
Out with the old!
under current law in Missouri you may roll over your payday loans up to 6 times.
This can create a very bad situation for many who can not afford to pay on the loan and end up in a very expensive payday loan trap.
By charging up to 75% of the loan total in interest per roll over,borrowers end up in real trouble with out of control loan debt rather quickly.
A simple $500.00 loan can blossom into thousands of dollars.
In with the new!
The new law would cap that 75% interest at 35% which is still too high, but on the up side the law would also eliminate any roll overs.
This makes the bill very attractive to payday loan customers that are currently in trouble with payday loan debt.
The new law would also require lenders to post rates on payday loans and offer extension plans to people who have out of control debt.
Summary
Even though this new law will help many people in Missouri, on of the highest users of payday loans, to better keep a handle on their loans, they will still be paying incredible interest rates on these short term loans.
More needs to be done by every state in combating these companies, and as more states tackle these problems we may see a turn around in out of control debt.