Payday Lending in the us: Who Borrows, Where They Borrow, and just why

Payday Lending in the us: Who Borrows, Where They Borrow, and just why

FAST SUMMARY

Each 12 million borrowers spend more than $7 billion on payday loans year.

This report—the first in Pew’s Payday Lending in the usa series—answers questions that are major whom borrowers are demographically; just how individuals borrow; exactly how much they invest; why they normally use pay day loans; how many other choices they’ve; and whether state laws reduce borrowing or simply just drive borrowers online.

Key Findings

1. Who Utilizes Payday Advances?

Twelve million adults that are american pay day loans yearly. An average of, a borrower removes eight loans of $375 each per 12 months and spends $520 on interest.

Pew’s study discovered 5.5 per cent of adults nationwide used an online payday loan in past times 5 years, with three-quarters of borrowers making use of storefront loan providers and very nearly one-quarter borrowing on the web. (more…)