Affordable Alternatives to Predatory Loans

payday loan

Times are tough. The pandemic and economic crisis have left many Illinoisans struggling to make ends meet. Some have turned to payday or auto title loans to deal with emergencies or pay for big expenses. However, these loans charge excessive interest. In 2019, the average annual percentage rate (APR) on a payday loan in Illinois was 297%, and the average APR on an auto title loan was 179% APR.


The Illinois Legislative Black Caucus introduced the Predatory Loan Prevention Act (PLPA), which the Illinois General Assembly passed in 2021. The PLPA limits the amount of interest that lenders can charge to 36% APR.

Predatory loans can set-off a debt spiral and can lead to overdraft fees, loss of a bank account, bankruptcy, and even poor health. Check out this resource guide with ways to cut your expenses, boost your income, seek financial coaching, and seek alternative, affordable loan products.

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