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 major questions regarding whom borrowers are demographically; exactly how individuals borrow; exactly how much they invest; why they normally use pay day loans; the other choices they will have; and whether state regulations reduce borrowing or simply just drive borrowers online.
1. Who Uses Payday Advances?
Twelve million adults that are american payday advances yearly. An average of, a debtor removes eight loans of $375 each per and spends $520 on interest year.
Pew’s study discovered 5.5 % of adults nationwide used a quick payday loan in the last 5 years, with three-quarters of borrowers utilizing storefront loan providers and borrowing online that is almost one-quarter. (more…)