Alabama Payday Loan User Fees Above National Average, Pew Study Finds
Seven percent of Alabama adults have used a payday lender in the past five years, paying roughly $17.50 for every $100 borrowed on a two-week loan, according to a new national study released today.
The study, conducted by the Pew Charitable Trusts' Safe Small-Dollar Loans Research Project, found that 5.5 percent of U.S. adults said they used a payday loan in the past five years—often for routine expenses rather than for unexpected expenditures. While payday loans are due by the borrower's next payday, the average borrower is indebted for about five months out of the year, according to the study.
- Safe Small-Dollar Loans Research Project