There is quite a good percentage of Americans who use a payday loan in the routine. According to a survey done in the last five years, about 5.5 % of adults use payday services. This number was calculated then in about 2010; there were more than 12 million Americans. It is about the payday loans; then, these are the advance cash loans taken by some small business owners. There are the majority of borrowers in the market, and you will have needed on unexpected emergencies.
There might be cases when you would need money for groceries, utilities, or rental purposes. But the main difficulty is seen in the case when borrowers are not able to repay the payday loan. It is because of the higher interest rate which is applied on the borrowed amount and the strict terms and conditions. Because of these conditions and the borrower gets Trapped In The debt cycle, he has to pay that amount in the short term that becomes longer than expected.
When the detail was taken to check the age group, it was considered that 50% were women who took the payday loan and others were youngsters. Still, if you wish to know who purchased the payday loan, you must refer to the points suggested.
Less Educated People
The majority of paid amount borrowers are considered as the least educated people. You will find that the people who are taking these amounts do not even have a college degree. Some people even use this amount to pay college fees. Also, this amount could be used to repay the loan which was taken previously.
When individuals live as a couple, they can maintain a good financial condition and fulfill their desires to a good part. But there are some conditions seen when they have to separate or get divorced, which becomes an issue. For example, people who get divorced are seen to take payday loans to a large extent to fulfill their daily routine items. On the other hand, a married couple would never take the payday loan because they can get financially stable.
Having our own house is good because we can be comfortable and would not have to pay for the cost of the rent. But those who cannot manage a proper house would have to take an apartment for rent. People who take the payday loan are from rentals because 58% of people are taking these loans. They cannot pay the rent of the house they have taken, and because of this, they would have to borrow the payday loan.
The Low-Income Ones
If you cannot manage a good salary and do not have enough amount as a bank balance, then it would be our difficulty. These people are not able to get a daily requirement work fulfilled. They would have to take loans.72% of the payday loan borrowers are considered to be those who are having less income. Using the paid amount, they can easily purchase the required items and fulfill their basic demands.