Payday Loans: What Are They, Who Uses Them, and Why?
- Safe Small-Dollar Loans Research Project
- May 28, 2013
Pew's Safe Small-Dollar Loans Research Project seeks to identify and analyze borrowers’ needs, expectations, and experiences when it comes to small-dollar credit. It also researches a variety of loan products and the business models used by their providers, with a focus on studying the impact on borrowers.
Twelve million Americans take out payday loans each year, spending approximately $7.4 billion annually at 20,000 storefronts and hundreds of websites, plus additional sums at a growing number of banks.
To learn more about payday loans, including how they work, who uses them, and why, watch our two videos explaining payday loans.