Just How Borrowers Select and Repay Payday Advances

Payday Lending in the usa

FAST SUMMARY

For some body looking for fast money, a quick payday loan can appear to be ways to avoid asking nearest and dearest for assistance or engaging in long-lasting financial obligation. However these loans frequently prove unaffordable, making borrowers with debt for on average five months.

This report—the second in Pew's Payday Lending in America series—answers questions regarding why borrowers choose payday advances, the way they fundamentally repay the loans, and exactly how they experience their experiences.

Key Findings

1. Fifty-eight percent of pay day loan borrowers have trouble meeting monthly costs at least half the full time.

These borrowers are coping with persistent money shortfalls in place of short-term emergencies.

2. Only 14 per cent of borrowers are able to afford sufficient from their month-to-month...