Payday loans have helped countless Americans out of a financial pinch, but few of us really know all that much about them. Sure, we know that they are a type of short-term loan used to pay off an expense ahead of your next paycheck. But, have you ever stopped to wonder what the average amount borrowed is? Or how often borrowers extend their loans? Trivia like this is perfect for breaking the ice at parties, or just to tickle that part of your brain that needs a little more attention.
For any of you who have ever been curious, here is a list of interesting facts about payday lending.
The average amount of money borrowed through a payday loan is $392.
Three out of every five payday loan borrowers pay more in fees than they originally borrowed.
Eighty percent of payday loans are renewed or rolled over.
When you factor in rollovers, the average amount of time it takes a payday loan borrower to pay off their loan is 175 days.
The average APR for payday loans in the U.S. is over 400 percent.
On average, a payday loan borrower is in debt around five months each year.
Seven out of 10 borrowers use payday loans for regular expenses.
Only four percent of payday loans are borrowed by those who make over $60,000 per year.
Two-thirds of payday loan borrowers make less than $30,000 per year.
One-third of payday loan borrowers make between $10,000 and $20,000 per year.
On average, a payday loan customer takes out eight payday loans each year.
Seven out of 10 Americans want payday loans to be more regulated.
Seven out of 10 Americans would like banks to offer small-dollar loans to those with bad credit.
Those who take out payday loans are more likely to file for bankruptcy.
There are over 20,000 payday loan locations across the U.S.
The average payday loan plus fees consume about 36 percent of the average borrowers next paycheck.
Thanks for reading. We hope these facts have given you a little bit of perspective on the world of short-term, small-dollar lending. If we find more facts that we think you might like to know about, we'll add them to this list. Feel free to bookmark this page and check back frequently for more quick facts about payday loans.
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