Why People Use Payday Loans

Valued access to credit when it’s needed most

Payday loans provide a valuable service to customers. That’s not lip service—that’s straight from the mouths of actual payday loan customers:

 

Why the strong sentiment?

When individuals and families opt for a payday loan, it’s usually in a moment when they need money most.

TOP FIVE REASONS PEOPLE USE A PAYDAY LOAN:

 

To pay for an unexpected expense

(Average car repair costs $367.84)

To pay ordinary expenses between paydays

(Feeding a family of four can run $289 a week)

To avoid paying a late fee on a bill

(Credit card late fees range from $25 to $35)

To avoid bouncing a check or overdrawing their bank account

(Average bounced check fee is $32.48)

To help out a friend or relative who needed money

A VALUED OPTION IN TIMES OF NEED

In these moments of hardship, why do many consumers turn to payday loans? Payday lenders offer what other financial institutions do not: Convenient access to small-dollar loans.

 

Average Unsecured (Credit-Based) Loan:

A REMEDY FOR FINANCIAL DISTRESS

Obtaining a cash advance in a quick and convenient manner is critical for borrowers, the majority of whom rely on payday loans to quickly solve a short-term financial problem.

95%

of borrowers believe payday loans can provide a safety net during unexpected financial difficulties.

87%

of borrowers feel that payday loans can help them bridge a gap in their finances.

Payday loans are an important choice for consumers during short-term financial crises.

REAL PEOPLE, REAL STORIES