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Created with Fabric.js 1.4.5 PAYDAY PAYDAY LOANS LOANS WHO uses payday loans? Most borrowers are females that are white, employed, and 22-44 years old. A disproportionately high number are also those who lack a four-year college degree, are separated or divorced, or are home renters. Everyday Emer. Other 69% of first-time borrowers cover recurring expenses, like bills. Only 16% covered unexpected expenses, like a medical emergency. 81% of borrowers said if payday loans weren't available, they'd cut back on other expenses instead. Most borrowers (58%) have trouble meeting monthly expenses at least half of the time, dealing with persistent shortages ratherthan short-term emergencies. Friendly service and appreciation for funds conflict withborrowers' feelings of distress about high lending ratesand long term indebtedness. 41% of borrowers needed additional money to pay off their loan. Many turned to the same options they'd use without a payday loan: borrowing from friends or family, a different loan, or pawning possessions. Around 16% used a tax refund to repay a payday loan. There are more paydaylenders in the U.S. than McDonald's Loans that cover even the planned loan duration can have rates that exceed 100% APR. Sources Cited:(1)Nationwide Pew Survey Challenges Conventional Wisdom on Payday Loans - Pew Center on the States. (2012, July 7). Retrieved March 2, 2015, from http://www.pewtrusts.org/en/about/news-room/press-releases/2012/07/18/nationwide-pew-survey-challenges-conventional-wisdom-on-payday-loans(2)Payday Lending in America: How Borrowers Choose and Repay Payday Loans. (2013, February 20). Retrieved March 2, 2015, from http://www.pewtrusts.org/en/research-and-analysis/reports/2013/02/19/how-borrowers-choose-and-repay-payday-loans(3)Cox, J. (2014, November 24). There Are More Payday Lenders in U.S. Than McDonald's. Retrieved March 2, 2015, from http://www.nbcnews.com/business/economy/there-are-more-payday-lenders-u-s-mcdonalds-n255156(4)Worstall, T. (2011, December 20). Why Payday Loans Are So Expensive. Retrieved March 3, 2015, from http://www.forbes.com/sites/timworstall/2011/12/20/why-payday-loans-are-so-expensive/ (1) (1) (2) (2) (2) (3) (4)
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