How Many People Use Payday Loans In The USA?
Payday loans are taken out by approximately 12 million Americans each year. People apply for payday loans due to a number of reasons.
Are you one of the many Americans who take out payday loans?
At some point in your lives, you’ve likely seen an advertisement for payday loans online or at a storefront. You may have heard of the concept of short-term lending, whether you’ve ever thought about getting a payday loan. Lenders often market these loans as a solution to unexpected financial emergency and for people with lower incomes.
You may not realize that payday loan users often take out more than one loan in a year. And the reason they need the money might not be what it seems.
What are payday loans exactly?
Payday loans are an alternative form of credit. They can be quickly accessed and taken out by people with poor credit or lower incomes. Payday loans are available to those who need immediate funds and those with lower incomes. They typically charge a higher annual percentage (APR), than personal loans and credit cards.
These are a form of short term lending. The low-cost loans, usually $50 to $1,000 in size, are often high-cost and small.
Payday loans: Who is it for?
Payday loans are used by approximately 12 million Americans each year.
For what expenses can people get a payday loan?
Surprisingly, 69 percent of payday loan applicants use the funds to pay recurring expenses like rent, food, credit card bills, and rent. This shows that payday loan borrowers have a continuous shortage of cash and a need for more income.
Payday loan lenders often market payday loans as quick fixes for unexpected emergency situations, but only 16% of borrowers actually use payday loans for this purpose.
Are you looking for payday loans?
To get payday loans, 73 percent of payday loan borrowers go to a shopfront. People living in the southern states are more likely than people in other areas of the US to get payday loans. Payday loans are less popular for residents of the northeast. If you drill down to the cities, people who live in cities are more likely to get payday loans.
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