Just How Borrowers Select and Repay Pay Day Loans

Just How Borrowers Select and Repay Pay Day Loans

Payday Lending in the usa

For somebody looking for fast cash, a quick payday loan can seem like a solution to avoid asking nearest and dearest for assistance or stepping into 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 pay day loans, the way they finally repay the loans, and exactly how they experience their experiences.

Key Findings

1. Fifty-eight percent of cash advance borrowers have difficulty fulfilling expenses that are monthly least half enough time.

These borrowers are coping with persistent cash shortfalls in the place of short-term emergencies. Read More