12 Million Americans Take Out Payday Loans

A new Pew Charitable Trusts report demonstrates the surprisingly high number of Americans who utilize payday loans.  These payday loans are generally short-term, high-interest cash advances that average $375.  The typical borrower takes out eight of these loans each year and spends $520 on interest.  The report states that 12 million Americans use payday loans annually.  69 percent use these loans for everyday expenses, such as credit card bills, mortgage payments, groceries and the like, whereas only 16 percent take out a payday loan to cover unexpected expenses such as unanticipated medical costs or car repairs.  The most common borrower is white, female and between 25 and 44 years old, but the study also found five other groups of Americans that are more likely to take out these loans: those without a college degree; Africans Americans; home renters; those who earn less than $40,000 a year; and those who are divorced or separated. 
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  1. The figures will not lie. If government will continue to deny the benefits of payday loans then they should create a way to let those 12 million Americans borrow some money or provide lending code for small cash advances for them.

  2. Did you know that even though you have written a personal check for a payday loan, a lender cannot arrest you for writing a bad check if you don't have the money in your bank account to cover that check or electronic debit. See Going To Jail For Bouncing A Bad Check For A Payday Loan to learn how to give these loan sharks a taste of their own medicine!

  3. Yes Payday Loans are little tricky if we don't understand them wisely. Taking payday loans every single purpose is also bad thing to be consider. But we can't stop these Emergency Crisis like Medical Bills & Car Repairs etc. If we have the ability to pay the loan in time then these payday loans are Life Saviours. For me this shorttermcredits is the life saviour of my Mom. which has the reasonable interest rates.