Payday Lending in the usa

FAST SUMMARY

A payday loan can look like a way to avoid asking loved ones for help or getting into long-term debt for someone in need of quick cash. However these loans often 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 pay day loans, the way they finally repay the loans, and just how they feel about their experiences.

Key Findings

1. Fifty-eight percent of cash advance borrowers have difficulty fulfilling month-to-month costs at least half enough time.

These borrowers are working with persistent cash shortfalls instead of temporary emergencies.

2. Just 14 % of borrowers are able to afford sufficient from their month-to-month spending plans to settle a payday loan that is average.

The borrower that is average afford to spend $50 per a couple of weeks to a payday lender—similar to your cost for renewing a normal payday or bank deposit advance loan—but just 14 % are able to afford the greater amount of than $400 necessary to pay back the total number of these non-amortizing loans. Continue reading →