Pew's Safe Small-Dollar Loans Research Project focuses on small-dollar credit products such as payday and automobile title loans, as well as emerging alternatives. The project works to find safe and transparent solutions to meet consumers’ immediate financial needs.
Why Safe Small-Dollar Loans Matter
Millions of American families spend billions of dollars taking out payday loans each year. These loans typically offer about two weeks of credit, but at annual interest rates around 400 percent. There is little research about how small credit can most help consumers without creating a cycle of high-cost debt.
How We Conduct Our Work
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.
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The LATEST from the Project
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- Interactive
- Safe Small-Dollar Loans Research Project
State Payday Loan Regulation and Usage Rates
Use the map to see each state’s usage rate, and click individual states to read a summary of their payday lending laws. more
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- Press Release
- Safe Small-Dollar Loans Research Project
Nationwide Pew Survey Challenges Conventional Wisdom on Payday Loans
Americans spend $7.4 billion per year on payday loans, including an average of $520 in interest per borrower for eight $375 loans or extensions. The Pew Charitable Trusts establishes a new understanding of borrowers and their needs in Payday Lending in America: Who Borrows, Where They Borrow, and Why.
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- Safe Small-Dollar Loans Research Project
Payday Lending in America
Pew’s Safe Small-Dollar Loans Research Project surveyed payday loan borrowers about their usage, as well as other options they would use if payday loans were unavailable.
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July 18, 2012
A Short History of Payday Lending Law
A hundred years ago, when a mass market for consumer credit did not yet exist, underground purveyors of consumer credit began to emerge, and a variety of problems ensued. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Borrowers Use Payday Loans for Ordinary Expenses Not Financial Emergencies, says study
Pew researchers have found that most borrowers who take out payday loans use them to cover ordinary living expenses, not unexpected emergencies -- a finding that contradicts industry advertising that emphasizes payday loans as short-term options to cover financial emergencies. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
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.
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- Media Coverage
- Safe Small-Dollar Loans Research Project
African-Americans, Renters, Divorcees Likely to Use Payday Loans
In many cities, neon "payday loan" signs are ubiquitous in storefront windows and might go unnoticed by most passersby. But a new survey should make more people take notice of who's using those loans, how much they're borrowing, and the costs that can come with quick cash. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Fewer Payday Loans Made in States with Strict Laws: Study Finds
The report, "Payday Lending in America: Who Borrows, Where They Borrow, and Why," is based on an in-depth survey and focus groups with hundreds of payday borrowers around the country, conducted by Pew's Safe Small-Dollar Loan Research Project. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Many Use Payday Loans to Cover Food, Rent
Many people think of payday loans as a way to cover an unexpected emergency – such as a car repair or medical expense – until your next paycheck comes in. But nearly seven in 10 people who use the short-term, high-fee loans rely on them for recurring, everyday expenses such as rent, food, utilities or car payments. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
'Fast Cash' Payday Loans Cost Borrowers $520 Per Year in Fees
Americans tempted by the promise of fast cash are paying an average of $520 a year in fees for short-term credit lines known as payday loans.
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