According to The Pew Charitable Trusts, more than 12 million Americans take out payday loans every year to meet urgent financial requirements. That’s three times the number of Americans who used these loans in 2000.
Payday lending is like a wave that’s sweeping across the working class rather than a niche. Most people borrow to fulfill basic needs and they prefer to approach payday lenders because they don’t need to go through credit checks or prove their ability to pay.
According to the Consumer Financial Protection Bureau, 2 out of 3 Americans who took out a payday loan took 7 or more loans per year. People may think that taking one payday loan will not kill them, but this can turn into a chronic problem if they’re already behind on their payments.
Assess all your options before you apply for a payday loan. Explore long-term financial solutions and shop around for cheaper loan options before you decide. Check the reputation of the lender and read the terms and conditions carefully before you sign up for a USA payday loan.