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
Sources:
http://cfsaa.com/Portals/0/Harris_Interactive/CFSA_HarrisPoll_SurveyResults.pdf
http://usnews.rankingsandreviews.com/cars-trucks/best-cars-blog/2013/04/Auto_Repair_Costs_are_on_the_Rise/
http://www.usatoday.com/story/news/nation/2013/05/01/grocery-costs-for-family/2104165/
http://www.foxbusiness.com/personal-finance/2013/10/18/chronic-late-credit-card-payments-how-bad-can-fines-fees-get/
http://www.bizjournals.com/columbus/blog/2014/08/bounced-check-and-account-fees-heading-up-bank.html
http://www.foxbusiness.com/personal-finance/2009/12/04/personal-loans-work/
http://www.reuters.com/article/2013/10/28/us-loans-unsecured-idUSBRE99R0YI20131028
http://www.dfi.utah.gov/PDFiles/Annual.PDF