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You need cash to pay an important bill, and you haven't got it. What do you do?,Many Americans turn to payday loans to fill this gap, even though the interest rates are staggering – an average of nearly 400% APR.,A disturbing percentage of young Americans have at least considered the idea.
Over half of millennials (51%) have considered a payday loan – not surprising, given that many millennials came of age during the housing crisis and the subsequent recession. The most common reason cited was to cover basic expenses like rent, utility payments, and groceries.,However, 38% of Generation Z have also considered taking out a payday loan. Their reasons were mostly associated with college costs (11%).,Older generations see the downsides of payday loans – or perhaps they experienced those downsides when they were younger.

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Only 16% of Gen Xers considered a payday loan, while only 7% of baby boomers did so. (Essentially, any baby boomers desperate enough to consider a payday loan followed through.),Lenders often roll over the loan for those who can't pay, further compounding the problem.
According to the Consumer Financial Protection Bureau (CFPB), almost 25% of payday loan borrowers re-borrow their loan at least nine times. The Pew Research Center found that an average payday loan borrower took out eight loans of $375 each annually and paid $520 in interest as a result.,Better still, work enough surplus into your budget to create an emergency fund for future financial crises.



You won't have to worry about any loan repayment at all.,Related Stories Understanding What A Payday Loan Really Is 9 Alternatives To Payday Loans Loans That Help You Save Payday Loans Are Sinful Cutting The High Price Of Payday Loans (Infogra... Auto Title Loans 101 Conversation | 0 Comments Add a Comment Write your comment below Comment



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