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.
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.
ReplyDeleteYes 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.
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