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.


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.

Safe Small-Dollar Loans Research Project

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