Media Coverage

Marketplace: Payday Lenders Inspire Mixed Feelings From Borrowers

Generally, payday loans are advertised as quick fixes for unexpected expenses -- a couple hundred dollars to hold borrowers over until their next paycheck. But a new report from The Pew Charitable Trusts released Wednesday found the average borrower ends up in debt for five months, paying $520 in finance charges for loans of just $375.

Some borrowers spend years in debt.

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Pew’s study found nearly 40 percent of payday borrowers would have taken out a loan no matter what the terms were.

Moreover, consumers have complicated relationships with these lenders, according to Nick Bourke, the director of Pew’s Safe Small Dollar Loans Research Project.

Projects:
Safe Small-Dollar Loans Research Project
States:
National
 
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Related Resources

PCS.PRODUCTION.1.20140421.1115 (PEWSUWVMWAPP01)