It’s no mystery that plenty of people around the country use payday loans to help them get through tough times and deal with urgent financial emergencies. But just how many people are we really talking about? Furthermore, what kind of people are they? Are there any characteristics that can be pointed to as being ones they tend to have in common?
A recently released comprehensive report by the Pew Charitable Trusts dealing with payday lending in the U.S. includes results from a survey of over 33,000 payday loan borrowers. The findings of the survey along with other facts noted in the report are interesting to say the least, and they shed some light on who exactly is availing themselves of payday loan assistance.
First of all, the report reveals that a significant number of people throughout the nation are using payday loans. Approximately 12 million Americans use payday loans annually, and the survey found that 5.5 percent of all adults in the U.S. have used one of these loans in the past five years. The report also notes that those who borrow tend to be repeat customers, with individuals taking out an average of eight payday loans a year. And when they borrow money, they get amounts that are sufficient to help them with all sorts of situations, as the average loan amount taken out is $375.
The report also highlights the diversity of the borrower population. A majority of payday loan borrowers are in their prime earning years, between 25 and 44 years old, but people of all ages from 18 on up make use of quick payday loans. Also, individuals of varying incomes utilize the loans, with more high-income earners than some might expect. A sizable percentage of loan borrowers earning $50,000 or more per year particularly choose to take advantage of online loans. Finally, the report makes it clear that people from all educational backgrounds borrow loans, with those possessing a college degree being much more likely to borrow online than those without one.
Ultimately, the Pew document demonstrates that payday loans occupy a firm place in the American financial landscape. Moreover, they represent an attractive form of financial assistance to a wide range of people. And is this really that surprising? After all, almost everyone at some point in their lives finds that they could use a little bit of help to get through the rough spots, and payday loans provide that help quickly, conveniently and without hassle.