Size
of Payday Loans?
According to
a study done by the Community Financial Services
Association of America in 2001, almost all payday loans
amount to less than $500 in size. The survey included 427
payday borrowers. According to the findings by the
survey:
- Only 2.2% loans were
more than $500.
- 9.2% loans were
between $401 - $500.
- 8.9% loans were
between $301 - $400.
- 45.4% loans were
between $201 - $300.
- 27.3% loans were
between $101 - $200.
- 7.0% loans were
between $100 or less.
The survey clearly shows
almost 72% of payday loans were between $101 to $300.
Borrowing Habbits
- Payday Loans, Are they debt traps?
Accoring to a study done by Wisconsin Department of
Financial Institutions in 2000, almost 73% of the
borrowers come back for another payday loan, and end up
taking more than 5 payday loans in a year. The survey
included 450 borrowers. According to the survey4% of the
borrowers ended up taking as many as 25 loans in a year.
26% of the repondents took these loans between 6 and 10
times in a year.
|